As pointed out in the previous article briefly dealing with the general principles and working mechanism of the Governmental Resolution on Investment Incentives, both the number and scope of individual benefits that a would-be investor is entitled to receive largely depend on which investment incentive scheme applies to the specific situation.
Turkey which is the 18th economy in the world with its 2014 (1) GDP almost reaching 800 billons of US dollars plays a significant role in the global economy. We understand the importance of this role, not only through effects of changes in the Turkish economy on the rest of the world, but also by the fact that more and more foreign investors including huge multinational companies prefer to invest in Turkey. International actors pay attention to some indicators such as law system, political and economic stability, quality of human resources, tax system etc. while they make a decision related investment in Turkey.
Tax treatment of income elements gained by foreigners from any source of income has been usually on the top of international tax agenda and extensively debated worldwide by experts, academics and tax practioners alike.
The Turkish government’s attempts to reap economic gains and development through investment incentives can be traced back to the last years of the Ottoman Empire. Incentives to stimulate activities in some sectors and regions and improve the economic outlook of the country as a whole were codified for the first time in the Industry Encouragement Law in 1913.
Monthly budget realizations of January 2016 was declared with a report by the Finance Ministry. It was stated by the Minister Naci Ağbal that the monthly budget surplus for January 2016 reached to TL 4.2 billion compared to TL 3.8 billion realized in January 2015 marking %16,5 rise.
It was stated by Interior Minister Efgan Ala that 1.435.000 TL was paid as compensation to martyrs’ families and those wounded in combat during the hearing in the Parliamentary Planning and Budget Commission.
Similar to many other jurisdictions across the world, specifically OECD members, the tax system in Turkey too has an administrative mechanism — namely the advance tax ruling — with which taxpayers (both real persons and legal entities) endeavour to alleviate the threat of sanctions concerning ambiguous tax matters and legal loopholes that emerge despite the presence of elaborate explanations made in tax laws and related secondary legislation.
Taxpayers whose revenues consist of merely commercial earnings determined through single entry accounting procedures (bookkeeping) are expected to file their tax returns to respective tax offices between 1 - 25 February, 2016. Tax amount computed on the tax base declared with annual tax return is to be paid in two equal installments, first until 29th February and the second until 30th June, 2016.
Taxpayers (real persons and legal entities alike) whose commercial, agricultural and professional earnings and revenues are calculated according to ‘actual basis accounting method’ are obliged to employ Electronic Notification System in their official interactions with the tax authorities starting as of 01/01/016.
The Presidency of Revenue Administration of Turkey has shared with public opinion the results of the search called ‘Taxpayers Satisfaction Survey’ conducted between 9-26 November, 2015 through the said administration’s official website.
Weekly data and development in Turkish economy between 25-29 January, 2016
Acquisition of land and other real properties including limited real rights by foreign nationals and foreign legal entities has long been an inherent part of inter-state affairs due to its diplomatic, economic and political significance and long-lasting implications for any sovereign country seeking to secure a place in the constantly evolving power politics of our rapidly globalizing world.