If you are thinking of starting a business in Turkey or if you already have a business, here are 10 information about the Turkish Tax System.
1- What is Tax?
Tax; It is the money received from individuals and institutions of the state for the purpose of performing public services as determined by law. Taxes are the money taken from individuals and institutions for the provision of public services by other public institutions and the state. Although obligatory, tax is an issue in the constitution where everyone has different liabilities according to their ability to pay.
2- What Are the Tax Types?
Tax types are named with certain codes within themselves. Although there are quite a number of tax types in the tax list belonging to the Revenue Administration, when the main tax type is mentioned, you will see 7 taxes. These;
- Income tax
- Corporation tax
- Value Added Tax (KDV)
- Special Consumption Tax (ÖTV)
- Motor Vehicles Tax (MTV)
- Stamp duty
- Property tax
3- Periodicity in Taxes
Taxes are declared in certain periods. Some are given every month, some are given every 3 months, some are regulated annually. The responsibility of each period is limited to that period. In other words, an income that should be declared in February is not declared in July, in a type of income for which a monthly declaration is submitted.
4- Who Arranges the Declarations?
Your financial advisor prepares the declarations in accordance with the accounting records and forwards them to the tax office. But remember that the declared tax is your tax and you are responsible for any incomplete or false declaration.
5- Declaration Policy
The Turkish Tax System (and generally other systems around the world) is subject to declaration. Individuals or businesses tell themselves how much income they earn in certain periods and how much tax they have to pay on these earnings. There is a certain group of people in Turkey who do not declare their income and thus do not pay their taxes or pay less. The government conducts tax inspections and cross-checks from time to time in order to prevent the informal economy.
6- Incentives and Exclusions
The government collects taxes under various names from all kinds of earnings that it considers as income. One of the purposes of tax collection is to control income distribution. The government may charge less or no tax for certain types of income or taxpayers.
Incentive: As a requirement of government policies, it is to make certain areas, activities, and activities attractive by reducing tax rates or not collecting taxes at all to develop the region.
Exception: Some income is excluded from the tax calculation.
7- Online Payment in Turkish Tax System
Today, you can make your tax payments online through banks that have contracted with the GİB and with the help of various integrators.
8- What Happens if the Tax Debt is Not Paid on Time?
In the accrual slip received after the tax return is submitted, it is written how long this tax should be paid. The tax is paid up to this date without penalty. Tax delay penalty will be applied for taxes not paid until this date.
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9- Tax Amnesties
In our country, there may be regulations called tax amnesty from time to time. Based on these regulations, the state can waive certain tax receivables or the penalties or interests incurred on these tax receivables.
10- The Concept of Financial Advisor
It is a professional group that ensures that businesses manage and audit their accounting transactions accurately and duly within the scope of the laws numbered 3568, and is obliged to submit documents showing the compliance of the legislation to the business or official authorities when necessary.
Persons with financial advisors are those who have completed departments such as business, economics, public administration, accounting and law. Persons who have been successful by qualifying for a number of exams become financial advisors after the end of their internship process. They do their duty for 10 years (public accountant and financial advisor) and take the exam again. Persons who are successful in this exam become Certified Public Accountants (YMM).
Certified public accountants carry out their work sitting in an office environment. While the person is working, they interact from time to time with business owners, Ministry of Finance personnel and colleagues.
Financial advisors can perform different duties depending on whether they are freelance or sworn in. However, if we list the tasks they do in general;
- To record the general income and expense status of an enterprise,
- Issuing SSI statements in case the business provides payroll services,
- To make tax declarations that it is obliged to,
- Establishing the accounting infrastructure needed by businesses,
- To carry out works such as change of address, change of activity,
- Performing audits based on documents, preparing financial statements and issuing reports,
- To ensure that the relations of private institutions with the SSI progress correctly,
- Being an expert on the subject where expertise is needed in the Tax Administrative Courts and the judiciary,
- To undertake arbitration in matters such as criminal proceedings that require reconciliation between the tax office and the enterprise or individuals.
In addition, a Certified Public Accountant (YYM), unlike a Financial adviser , is not obliged to keep any books. It cannot open an accounting office or become a partner in an existing place.
Persons with financial advisors are those who have graduated from departments such as business administration, economics, public administration, accounting and law. Persons who have been successful by qualifying for a number of exams become financial advisors after the end of their internship processes. They do their duty for 10 years (public accountant and financial advisor) and take the exam again. Persons who are successful in this exam become Certified Public Accountants (YMM).