Tax in Turkey

What Are The Expenses not Accepted as Legally in Turkey?

Tax Procedure Law is expressed that costs which are the expenses and which are not. So it can be change in case of which expenses can be deducted from the income and kind of business and capacity. To know these is important for the business. According to that there will be calculation operations. In the articles that take place in Tax Procedure Law which are accepted as expense and not accepted as expense are lined up like this:

Not Accepted as Expenses

According to Tax Procedure Law not accepted expenses are lined up like this:

  • The expenses which cannot be documented according to Tax Procedure Law.
  • Necessity coins.
  • Interest for the delay.
  • Marketing commissions.
  • Advertisement expenses for alcohol and tobacco.
  • Implicit gains that hand out from the fund companies.
  • Interest that will be paid through self-fund fines.

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Other Expenses That Not Accepted

Despite it is not expressed in the Tax Procedure Law, it is not applicable that following articles’ deduction from the income in case of detected in the earning.

  • Damages that emerges from reasons like lost, robbery.
  • Sum that given due to death advertisements and other costs.
  • Recording costs as expense which should be taken into consideration.
  • Provisions which are not arranged in VUK.
  • Counting without reason and delivery shortages.
  • Expenses due to legally prohibited ( donations to illegal places, bribe )
  • Expenses that paid to the association or unities.
  • Expenses that paid for documents which are made specially for another person or institution.
  • Donations that made for real-legal people or political parties.
  • Financial supports to the business employee because of the death of any member of the family of business employee.
  • Expenses that belong to previous years except current year.

Tracing costs that not considered as an expense is also one of the impotant topics that stand out. Every company do tracing this topic in a different way that they found. While some business generally prefer to  do income statement calculating others can get help off-balance method. Especially to get clear and better results off-balance method are preferred mostly. So in this way unlike other methods the result can be seen more easily.

Ata Kurumsal

ATA Institutional Consulting, founded in 2002, is a leading consultancy firm in the sector providing work permit, residence permit, Turkish Citizenship and turquoise card consultancy in Turkey.

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