Legislation

10April2015

Imposed Penalties for Not Submitting E-Declaration and Notification of Retrospective Tax Obligations

According to the Communique of Tax Procedure Law No. 449 published in the Official Gazette dated 10.04.2015, irregularity fines for not submitting e-declaration and notification of retrospective tax obligations shall not be imposed anymore.

Due to tax evaluation reports, the application of the liable, or tax office identification, it is possible to open a liability retrospectively. However, for declarations and notifications not submitted online and in time, there is a special irregularity fine. In cases opened against such fines, judicial authorities decided these fines shall not be imposed, which became a permanent decision. In order to solve the problems arising for such cases, the “Financial Administration” made a regulation and stated in communique that there will be no longer irregularity fines imposed.

On the other hand, because there was no declaration made for the liable persons in question, retrospective tax will continue to be levied, tax loss fine will continue to be imposed for taxes not paid in time, and irregularity fines will continue to be imposed for not declaring start of the employment in time by Law No. 325/I-/.

Author CottGroup Hukuk ve Mevzuat Ekibi, CottGroup Hukuk ve Mevzuat Ekibi, Category Taxation Law

10April2015

Inconsistencies in Headcount between Tax and SSI Declarations

The headcount reported in monthly SSI premium declarations and in withholding tax returns is subject to cross-check by the state auditors. Therefore, inconsistencies between these declarations pose a risk.

It has been noted that state auditors have been forwarding random audit reports to related SSI Offices and seeking information from companies based on the cross-checked results.

This is a fairly recent practice given that inconsistencies between headcount reports in withholding tax and SSI declarations were not scrutinized before.

Author Selma Kıy, Category Social Security Law and Legislation, Taxation Law

08April2015

Regulation on the Social Security Insurance of Domestic Service Workers

A communiqué regarding the social security insurance of domestic service workers within the scope of supplementary article 8 of the law on Social Security enumerated 5510 has been published and is in effect as of 01/04/2015. Domestic service work comprises domestic help such as cleaning, cooking, child as well as elderly care.

Domestic service workers are now categorized according to the days worked in a calendar month, threshold being 10 days. Accordingly, employers who employ domestic service workers 10 days or more are obliged to contribute the full SSI amount.

Author Selma Kıy, Category Social Security Law and Legislation, Taxation Law

06April2015

Anticipated Tax Benefits in Capital Increases

A new regulation¹ aimed at encouraging incorporations, limited liability and comandite companies² to invest in paid capital rather than foreign capital will enter into force on 01/07/2015 and allow:

A tax deduction³ for the paid portion of the increased capital to be calculated by the legally applicable interest rate.⁴ In the event where no profit is declared for the year in question, the tax deduction can be carried over to the subsequent tax year.

For companies who are considering a capital increase, it is recommended that they calculate the advantages to be gained with the new regulation.

Click here for the recent regulation⁵ (available only in Turkish) and contact your account representative for detailed information on the subject.

References:

www.tbmm.gov.tr

Law no : 6637 Date : 27/03/2015 Law amending certain laws and enactments.

The said regulation is currently submitted for approval to the Presidency, and upon approval, will go into effect on 01/07/2015.
Companies in finance, banking and insurance and state-controlled entities are out of scope of this regulation.
50% of the interest calculated at the related account period.
The latest interest rate with respect to commercial bank loans in TL currency as declared by the Cenral Bank of Türkiye.
See art. 8.

Author CottGroup Hukuk ve Mevzuat Ekibi, Category Taxation Law, Turkish Commercial Code