liquidation – Muhasebe News

Should companies starting the liquidation process get approval for account book of the period of liquidation, in Turkey?

MuhasebeNews — Wed, 18 Sep 2019 12:00:01 +0000

Should companies starting the liquidation process get approval for account book of the period of liquidation, in Turkey?

We decided to start the liquidation process 4 months ago. We submitted the declaration of pre-liquidation yesterday. The third declaration was given, but we didn’t get book approval. Should we get approval for the book of pre-liquidation process? What is the implementation of this process?

When the liquidation process is started, you must get approval for the account book.

Source: İSMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Is it possible to submit the corporate tax return for special period liquidation through e-declaration system?

MuhasebeNews — Tue, 11 Dec 2018 13:00:42 +0000

As I know, for our company that went into liquidation on 02.08.2018, we are required to submit our declaration of special period liquidation for the period of 01.01.2018-02.08.2018 until the 25th day of the following 4 months. This means the 25th of December, 2018. Is it possible to submit the corporate tax return for special period liquidation through declaration?
(11.12.2018 10:13)

Liquidation declarations can be submitted as e-declaration.

What Is Advance Tax?

MuhasebeNews — Wed, 24 Oct 2018 07:22:44 +0000

1-What is advance tax?
It is a prepaid direct tax that is calculated on the basis of quarterly earnings against the income and corporate tax of the current taxation period of the taxpayers who are in the real taxation system and the taxpayers of the self-employed.

2-Which earnings are included in the scope of advance tax?
2.1-In real taxation system, taxpayers who are
2.1.1-The owners of commercial earning
2.1.2-Self-employed
2.1.3-Corporate Taxpayers
have to pay advance tax to be offset against income and corporate tax of the current taxation period.

2.2- Due to the fact that they are not taxpayers of income and corporate tax,
2.2.1- Ordinary partnerships
2.1.2- Self-employed
2.2.3- Limited partnerships are not provisional taxpayers.

***However, the earnings of the partners in ordinary partnerships and in copartner ships and the partners in limited partnerships are subject to advance tax.

3-Who are not subject to advance tax?
3.1- Corporate taxpayer in liquidation in liquidation period
3.2- Income taxpayers being subject to simple basis of assessment
3.3- People who work in construction and repair
3.4- Wage earners
3.5- People earning on movable assets
3.6- Real property income earner
3.7- Income earner from agriculture
3.8- The other earners
3.9- Self-employed whose earnings are exempted from tax
3.10- People who fulfil notary-ship are not subject to advance tax.

*** On the other hand, people who are not subject to advance tax are supposed to pay advance tax when they earn due to commercial and professional incomes except the earnings from some business stated above.

4-How can a profit be made through advance tax?
4.1- First of all, the taxpayers will determine the advance tax profit of the period by basing on 3, 6, 9 and 12-month financial statement of the related financial year according to the provision of the reiterated article 120 of Income Tax Law.
4.2- It is highly essential to take note of provisions about assessing the Tax Procedure Law and to observe the periodicity concept while determining the gain on taxation.

5- What is the ratio of advance tax for the income taxpayers and the corporate taxpayers?
Advance tax is applied as follows;
5.1- 15 % stated in the first percentile of the income tax tariff for income taxpayers
5.2- 20% for the corporate taxpayers

6- How can advance tax be calculated?
6.1- For income taxpayers,
6.1.1- Advance tax is calculated by applying the ratio of 15 % stated in the first percentile of the income tax tariff to the financial year (related to the advance tax) of the quarterly income.

6.2- For corporate taxpayers,
6.2.1- Advance tax is applied as 20 % through net corporation profit.

*** The taxes that are paid by means of deduction in terms of the incomes being subject to advance tax and the advance tax that has been paid previously in terms of the same financial period must be offset against the calculated advance tax and then the balance after the offset should be declared as current advance tax.

7- Which exceptions and rebates are taken into consideration when making out a provisional tax return?
The taxpayers may take advantage of all exceptions and rebates which they take into consideration in corporate tax return during the determination of taxes being subject to advance tax.

8-What if the advance tax was under declared?
In case that more than 10 % of the advance tax related to the previous period is under declared, tax penalty for loss of tax and delay penalty will be applied to ex officio tax calculation and additional assessment that are made for that under declared part. The margin of error (10 %) should be calculated through the advance tax base that should have been declared (not through the advance tax base that has been declared already).

9- In case of not paying the advance tax, should the late fee be imposed?
The amount of advance tax that cannot be set-off through the tax calculated over annual return will be cancelled, because it is accrued but not paid. There will be imposed a late fee from the due date to the starting date (when it is supposed to be cancelled) of legal period when the annual return is submitted for the cancelled advance tax.

10- Can the delinquent advance tax be set-off against income tax calculated through annual return?
The advance tax, which is accrued but not paid, cannot be set-off against income taxes or corporate taxes calculated through annual return. It is obligatory to pay the accrued advance tax for offsetting.

11- Can the delinquent advance tax be set-off against the declaration submitted in the next period?
The delinquent advance tax may be set-off against the declaration submitted in the next period within the year and it is not obligatory to pay. Nevertheless, it is obligatory to pay when the advance tax is set-off against annual return. The advance tax (paid in due date) in respect of related accounting period can be set-off against income or corporate taxes calculated through annual return.

12- What should be done with the advance tax accrued but not paid?
The advance tax accrued through three months’ income (but it is not possible to set off against the tax calculated through annual return because it is not paid) will be cancelled. However, a late fee is imposed on cancelled advance tax from the due date to the date of cancellation (1 March for the income taxpayers, 1 April for the corporate taxpayers).

13- Can the social security organization for artisans and the self-employed primes be deducted in provisional tax return?
The social security organization for artisans and the self-employed primes can be deducted as limited to earnings. In case that the earnings submitted in the declaration are inadequate or not submitted, the part of the amount of input deduction deducted in the period of advance tax and primes from which can be benefited according to the annual return can be reduced from the income submitted by the income tax payers and the rest will not be subject to discount. The social security organization for artisans and the self-employed primes are presented in the column called ‘’Other Discounts’’ in the declaration.

14- What are the periods of advance tax? When are they submitted and paid?Source: Revenue Administration
Date: 31 January 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

How Many Companies were Established or Liquidated in May 2016- May 2017 in Turkey?

MuhasebeNews — Sat, 30 Sep 2017 09:00:38 +0000

The table below shows the companies that were established or liquidated in May 2016 and May 2017 on the basis of provinces in Turkey.

Source: The Union of Chambers and Commodity Exchanges of Turkey

What is the Liquidation Process in Corporations?

MuhasebeNews — Thu, 29 Jun 2017 11:42:12 +0000

If the following conditions are fulfilled, Corporations will go into liquidation.
1- Despite of expiry, unless Corporation virtually stays in business and the business hasn’t been turned into indefinite period and anticipated period of time in articles of incorporation expires.
2- If the field of operation actualizes or the actualization becomes impossible.
3- If one of sunset clauses stated in articles of association takes place.
4- With the general assembly resolution in accordance with 3rd and 4th clauses of article 421.
5- If there is a decision to go into liquidation.
6- Conditions anticipated by laws.

Source: Turkish Code of Commerce

In May 2017, the Amount of Limited Company Capital is 776 Million TL!

MuhasebeNews — Wed, 21 Jun 2017 12:33:18 +0000

According to data related to companies which were established or went into liquidation in May 2017;

1- Established limited company capital is 776.179.000-TL, Corporation capital is 1.090.367.903-TL, and the total amount of capital is 1.866.547.903-TL.
2- The total amount of capitals of Corporation, Limited Company, Association, Open Company is 35.905.724.067-TL.
3- When examining the companies who went into liquidation, there are 142 Corporations, 5 Open Companies, 645 Limited Companies and 69 Associations.

Source: Turkish Union of Chambers and Commodity Exchanges

Expenses that will be deducted from Company’s Earnings!

MuhasebeNews — Tue, 16 May 2017 10:34:22 +0000

1- DEDUCTIBLE EXPENSES ACCORDING TO INCOME TAX LAW
Income is taxed through net profit.
In order to determine the net profit, the expenses stated below should be accepted to deduct:
1- General expenses
2- Expenses related to the staff
3- Losses, damages and indemnities related to work
4- Travel and residence expenses
5- Vehicle expenses
6- Tax-in-kind, levies and charges
7- Amortizations
8- Fees paid to employers’ associations
9- Fees paid for personal retirement insurance
10- Donations made to associations and foundations making food banking

2- DEDUCTIBLE EXPENSES ACCORDING TO CORPORATE TAX LAW
In the determination of company’s income calculated like commercial income, a tax payer can deduct expenses stated below from its revenue.

1- Stock certificates and export cost of bonds
2- Incorporation and organizational costs
3- General meeting, business combinations, denouncement and liquidation costs
4- Insurance costs
5- Profit shares of partnership of commendams
6- R&D discount
7- Creditors without interest-fee and profit shares paid to private financial institutions

3- LOSS OFFSETTING AND OTHER DISCOUNTS
3.1- Loss offsetting
3.1.1- Previous losses
3.1.2- Losses of acquired company
3.1.3- Overseas losses
3.2- Donations and subsidies
3.3- Sponsorship costs
3.4- Dividends

Source: Corporate Tax Law numbered 5520 – Income Tax Law numbered 193

How Many Companies were Established or Liquidated in March 2016- March 2017 in Turkey?

MuhasebeNews — Thu, 27 Apr 2017 13:58:01 +0000

The table below shows the companies that were established or liquidated in March 2016 and March 2017 on the basis of provinces in Turkey.

Source: Turkish Union of Chambers and Commodity Exchanges

The Number of Company Establishment Decreased 10% in 2017!

MuhasebeNews — Tue, 21 Mar 2017 07:18:47 +0000

1- COMPARISON BETWEEN JANUARY 2017 AND FEBRUARY 2017
  1.1- COMPANY Establishment – Liquidation
      – The number of company establishment decreased 10,61%.
      – The number of company liquidation decreased 60,50%,

1.2- REAL PERSON BUSINESS ORGANIZATION Establishment – Liquidation
– The number of real person business organization establishment decreased 25,41%,
– The number of real person business organization liquidation decreased 35,86%

1.3- COOPERATIVE Establishment – Liquidation
– The number of cooperative establishment increased 1,54%,
– The number of cooperative liquidation decreased 75,12%

2- COMPARISON BETWEEN FEBRUARY 2017 AND FEBRUARY 2016
2.1- COMPANY Establishment – Liquidation
– The number of company establishment decreased 11,87%,
– The number of company liquidation decreased 2,43%,

2.2- REAL PERSON BUSINESS ORGANIZATION Establishment – Liquidation
– The number of real person business organization establishment decreased 1,88%,
– The number of real person business organization liquidation decreased 9,92%

2.3- COOPERATIVE Establishment – Liquidation
– The number of cooperative establishment increased 3,13% ,
– The number of cooperative liquidation decreased 38,37%

3- COMPARISON BETWEEN BIMONTHLY PERIOD (JANUARY-FEBRUARY) IN 2017 AND BIMONTHLY PERIOD (JANUARY-FEBRUARY) IN 2016
3.1- COMPANY Establishment – Liquidation
– The number of company establishment decreased 10,45%,
– The number of company liquidation decreased 0,19%,

3.2- REAL PERSON BUSINESS ORGANIZATION Establishment – Liquidation
– The number of real person business organization establishment increased 3,45%,
– The number of real person business organization liquidation decreased 1,04%,

3.3- COOPERATIVE Establishment – Liquidation
– The number of cooperative establishment increased 6,50%,
– The number of cooperative liquidation decreased 23,78%.

Source: Turkish Union of Chambers and Commodity Exchanges

Date: 21 March 2017