Value Added Tax – Muhasebe News

What is the Deducted Corporate Tax in Turkey?

MuhasebeNews — Sat, 01 Dec 2018 15:00:12 +0000

1- Deducted Corporate Tax Implementation in Scope of Corporate Tax Law Article 32/a
The aim of the deducted corporate tax implementation within the scope of Corporate Tax Law article 32/a is to direct the savings to investments which has high value added, to increase production and employment, to encourage big scale investments in order to increase the international compete, to increase direct foreign investments, to decrease the inter-regional diversifications and to support the research and development activities in line with the aims foreseen with development plans and annual programs.

Deducted corporate tax anticipates lower taxation on the investments which has incentive certificate issued by Ministry of Economy. Deducted corporate tax rates stated in “Decree Regarding State Aids in Investments” which is dated 15/06/2012 and numbered as 2012/3305, are applied to the regional and big scale investments. According to the decree:

a.Deducted tax is implemented until the deducted corporate or income tax amount reaches the investment contribution amount.
b.If the investment is transferred after fully or partly started to operate, the assignor continues to benefit from the deducted tax rate until the date of transfer and the assignee starts to benefit from the deducted tax rate beginning from the date of transfer for the residual amount of investment contribution.

2- Incentive in Scope of Corporate Tax Law Artificial Article 4
The corporate tax rate is applied 75% discounted for the income of the tax payers who transfers their production plants which deals with textile, ready-to-wear, leather and leather manufacture exclusively to the provinces stated by the Council of Ministers until 31/12/2010 and employs 50 staff at minimum. The discounted rate is applied for five years following the budget year of the date of transfer. Income tax payers shall also benefit from this incentive.

Source: Revenue Administration

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What Are Your Tax Liabilities When You Buy a Real Estate in Turkey?

MuhasebeNews — Tue, 30 Oct 2018 10:00:49 +0000

According to the Fees Code, the total rate of Title Deed Fee is 4%. Both the purchaser and the seller are liable to pay the title deed fee as 2% of the price of real estate (except Value Added Tax).

The amount of invoice arranged for real estate and the amount of transfer from the bank should be the actual purchase price.

Following the procedures at the land office, you can pay your title deed fee to authorized tax offices or banks having a contract with Turkish Revenue Administration.

After getting your title deed, you should inform the municipality affiliated to your real estate location about your property tax.

What is Value Added Tax in Turkey?

MuhasebeNews — Thu, 04 May 2017 11:01:21 +0000

In Turkey, the Value Added Tax (VAT) Law entered into force on January 1st, 1985. By the VAT Law, some indirect taxes on consumption were abolished.

Turkish taxation system levies value added tax on the supply and the importation of goods and services. Liability for VAT arises;
(a) When a person or entity performs commercial, industrial, agricultural or independent professional activities within Turkey,
(b) When goods or services are imported to Turkey.

VAT is levied at each stage of the production and the distribution process.
However;
liability for the tax levies on the person who supplies or imports goods or services, the real VAT burden is on the final consumer. This result is achieved by a tax-credit method where the computation of the VAT liability is based on the difference between the VAT liability of a person on his sales (output VAT) and the amount of VAT that he has already paid on his purchases (input VAT). The Turkish VAT system employs multiple rates and the Council of Ministers is authorized to change the VAT rates within certain limits.

Source: Revenue Administration

What are the Exemptions in the Vehicles, Oil Searching and Incentive Certificated Investments?

MuhasebeNews — Tue, 02 May 2017 11:31:20 +0000

Delivery of sea, air and railway vehicles,
Delivery of floating system and vehicles,
Delivery and services done concerning the manufacture and construction of these vehicles.
Modification, maintenance and repair services of these vehicles

provided to the taxpayers whose businesses are leasing, air and railway transportation vehicles, floating system and vehicles or operating these vehicles in various forms are exempt from value added tax. (Value Added Tax Law a. 13/1-a, Value Added Tax Law General communiqué II/B-1)

2. Exploration, operating, enrichment and refining activities concerning gold, silver and platinum and the delivery of goods and services provided to the businesses deal with oil exploration activities within scope of Oil Exploration Law provisions; are exempt from value added tax. (Value Added Tax Law a.13/1-c, Value Added Tax Law General communiqué II/B-3, II/B-4)

3. Delivery of machines and equipment to the taxpayers, who has the investment incentive certificate, are exempt from value added tax, under condition that the delivery is in the scope of this certificate. (Value Added Tax Law a.13/1-d, Value Added Tax Law General communiqué II/B-5)

4. Delivery of goods and services concerning businesses mentioned hereafter to the taxpayers who deal with construction, restoration and widening businesses of ports and airports by themselves or make others deal with these businesses are exempt from value added tax. (Value Added Tax Law a. 13/1-e, Value Added Tax Law General communiqué II/B-6)

The delivery of goods listed under Annex II List of Excise Tax Law; under condition that these goods are provided to the firms, who deal with exploration and production of oil according to the 6326 numbered Oil Law to be used in those activities, are exempt from tax. (Excise Tax Law a.7.1.b) (Excise Tax Law List (I) General Communiqué II/C-2)

Source: Revenue Administration

What are the Conditions of Making Export Registered Delivery According to Value Added Tax Act?

MuhasebeNews — Wed, 22 Mar 2017 14:17:24 +0000

WHAT ARE THE CONDITIONS OF MAING EXPORT REGISTERED DELIVERY? WHO ARE REGARDED AS MANUFACTURER
One needs manufacturer qualification in order to make export registered delivery.
A manufacturer needs;
1- to have one of industrial registry certificate or farmer registry certificate taken from Ministry of Food, Agriculture and Livestock, food premises registry certificate and operation permit (these documents will be mentioned as “manufacturer’s certificate” in the next chapters).
2- To register related professional chamber.

Source: Value Added Tax Act