tax cut – Muhasebe News

Is There a Tax Cut in Payments Made While Giving an Advertisement in Overseas Webpages?

MuhasebeNews — Sun, 02 Dec 2018 09:00:07 +0000

Payments, which are made in order to buy advertising services with the intention of advertising of companies via internet, marketing etc,. are considered commercial activities. If the company has no office or permanent representative in Turkey, it is not possible to tax it in Turkey. As a result of that, there will be no Corporation tax cut.

Source: Corporate Tax Law

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According to Corporate Tax Law, will there be deductions for the payments related to the computers bought from companies residing abroad?

MuhasebeNews — Thu, 16 Aug 2018 17:00:32 +0000

The conditions about the deductions for the payments related to the computers bought from companies residing abroad in line with article 30 of the Corporate Tax Law Numbered 5520;

1- If the computer programs bought from companies residing abroad are sold to the eventual customers or used in an institution without doing modifications on them and/or multiplying, the income will be regarded as a commercial income and the tax cut will not be applied to that kind of payments.

2- If the rights of reproduction, modification, distribution, display of a computer program are reserved within the scope of Copyright, the purchaser will obtain an intangible right. Furthermore, there will be a tax deduction in the ratio of 20% from the royalty payments made to the company residing abroad, in line with the Cabinet Decision numbered 2009/14593.

3- If the company residing abroad prepares a special computer program for an institution, the profit made by the company residing abroad will be regarded as self-employed income and there will be tax deduction in the ratio of 20% in line with the Cabinet Decision numbered 2009/14593.

4- If there is avoidance of double taxation treaty between the country in where the company reside and our country and there is determined a lower ratio as a tax (that ratio is specified as 10% in the treaties), that ratio will be taken into consideration.

Source: Corporate Tax Law

Is It Necessary to Submit a Declaration for Purchase – Sale and Interest Earned via Government Bond and Treasury bond?

MuhasebeNews — Wed, 17 May 2017 08:53:16 +0000

1- WHAT IS THE MEANING OF GOVERNMENT BOND?
Government Bond; is a kind of debt security issued by Undersecretariat of Treasury in order to fulfill its more than 1 year debt needs.
With those financial instruments, government guarantees to pay it with its interest yield on the dates specified.
Legal persons can take advantage of government bonds. Furthermore, banks also can keep those bonds in asset item of their financial statements as an investment tool.
Those bonds can be fixed rate, floating rate and exchange rate indexed government bonds.
They are sold with discount sale price like commercial papers.
The difference between discount sale price and nominal price in the date of maturity will be the beneficiary’s income.

2- WHAT IS THE MEANING OF TREASURY BOND?
Those bonds are sold in order to obtain bonds for short term loans of the government in a short span of time.
Its expiry date is maximum 1 year.
The person who has bonds will get interest income after the price is paid to person who has bonds at the end of expiry date specified by the institution (on condition that expiry date of Treasury bond should be less than 1 year).
The person who has bonds will gain principal and interest income at the end of expiry date.
Treasury bond is issued by Undersecretariat of Treasury.
(It was discovered by Walter Bagehot in 1876)

3- ARE INCOMES GAINED THROUGH GOVERNMENT BOND AND TREASURY BOND SUBJECT TO DECLARATION?
NO.
State-run government bonds and treasury bonds (exported) are not subject to declaration regardless of the amount of their interest income gained in 2016.

They will not be subject to declaration even if a declaration is submitted because of other incomes.

Furthermore, incomes gained through sale and purchase of government bonds and treasury bonds in 2016 will not be subject to declaration regardless of their amounts like interest incomes.

In the event of a declaration because of other incomes, they will not be included in declaration. Tax cut (stoppage), which is done through sale-purchase and interest income by the bank, will be the final tax.

Source: Revenue Administration

The Payments Made Because of Finding a Customer from Limited Taxpayer Companies and Marketing Related to Products and Services that are Exported Abroad in Turkey!

MuhasebeNews — Fri, 31 Mar 2017 08:22:23 +0000

If the activities of a foreign company which provide services related to products and services exported abroad consist of getting a commission through finding customers and the cost of products, this activity should be considered as a commercial activity. Additionally, there will be no tax cut in line with article 30 of the Corporate Tax Law numbered 5520.

If abovementioned activities are
1- Overseas marketing research,
2- Advertising of the products,
3- Marketing and management services
and they exceed the limits of pure brokerage services, these services will be regarded as professional services and there will be tax cut in the ratio of 20% in line with article 30/1-b of Corporate Tax Law and Cabinet Decision numbered 2009/14593.

On the other hand, provisions of double taxation agreement related to professional services will be taken into consideration.

Source: Corporate Tax Law