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Taxation Law


New Cash Repatriation

Reference: Abbas Coşar Certified Public Accountant


The New Cash Repatriation practice, which aims to nationalize the money of citizens abroad, entered into force by being published in the Official Gazette No. 28661 dated 29 May 2013 with Law No. 6486. In addition, General Communiqué on the Inclusion of Certain Assets to the Economy (Serial no: 1) was published in the Official Gazette dated 11 June 2013 and numbered 28674.

According to this communique, individuals and companies will be able to benefit from financial amnesty provided that they declare their money and financial resources abroad and their immovables abroad as of 15 April 2013. Moreover, it may be possible to exempt some foreign earnings from income or corporate tax, provided that they are transferred to the country. Here in this context, the special factors regarding the regulation in the temporary Article 85 of the Income Tax Law compose the subject for today’s article and the next article.

Posted in Taxation Law


Required Documentation for Capital Amount Reductions for LLC Companies

1. Petition to the Trade Registry Office

2. Resolution of the shareholders’ assembly (1 notarized copy) (Should be obtained in 2 months following the 3rd publication and should be arranged to reflect that a change in the capital amount will take place)

3. Amendment draft (3 copies – containing the original content and amended items –Signed by the partner and stamped)

4. The official trade registry gazette in which the invitations were published

5. Assignment letter of an expert by the court, and a report prepared by three experts in cooperation, and the court decision to appoint an expert (original)

Posted in Taxation Law, Turkish Commercial Code


Severance Pay Difference Income Tax Exemption

Reference: Koray ATEŞ SMMM- Retired Instructor

Question: Is Severance Pay Exempt From Income Tax?

Answer: According to Article 61 titled "Wage Description" of the Income Tax Law No. 193, wages are benefits that are provided with money and monthly payments for service, subject to the employer and affiliated with a specific workplace, and that can be represented with money. The fact that the salary has been paid as an allowance, indemnity, cash indemnity (financial liability indemnity) allowance, raise, advance, dues, attendance fee, premium, bonus, expense provision or under other names or is assigned as a certain percentage of the earnings, provided that it is not a partnership, does not change its nature.

In the subparagraph (1) of the article 94 titled "Tax Withholding" of the same Law, it was stipulated that the wages paid to the service providers and the payments that are written in article 61 and that the income tax withholding will be made according to the 103th and 104th articles.

Again, in Article 25 of the same Law titled "Compensation and Aids";

"The total amount of severance pay pursuant to Laws No. 1475 and 854 and the amount of severance payments paid pursuant to Law No. 5953 not exceeding 24 months of employee (wages paid without performing service are not considered as compensation);

Again, in Article 14 of Labor Law No. 1475 with the title "Severance Pay";

  1. Except for the reasons indicated by the employer in the clause II of Article 17 of this Law,
  2. By the worker in accordance with Article 16 of this Law,
  3. Due to active-duty military service,
  4. Termination in order to receive old age, retirement or invalidity pension or lump sum payments from the institutions or funds established by the law to which they are affiliated

In the event that a woman terminates voluntarily within one year from the date of marriage or terminates due to the death of the worker, the employer shall pay the employee a 30-day salary for each full year from the date of employment, during the continuation of the service contract. There is a provision that payments are made at the same rate for periods remaining from one year.

In the 16th article of the Labor Law numbered 1475, there are provisions regarding the conditions in which the employee can terminate the employment contract, and the article 17 of the same Law, there are provisions regarding the conditions in which the employer can terminate the employment contract.

On the other hand, in the 4th Article titled "Determining the Coefficients and Increasing the Wages" of the Public Servants Arbitration Board Decision dated 29/05/2012 and numbered 2012/1

(1) To be valid in the period of 1/01 / 2012-30 / 6/2012;

  1. Regarding to Article 154 of the Civil Servants Law dated 14/7/1965 and numbered 657, the monthly coefficient to be applied in converting the figures in the monthly dashboard and additional indicator figures into monthly amounts is applied as (0.068835). The base monthly coefficient to be applied to the civil service base salary indicator (0.92105) is applied as (0.021287) the fringe benefit to be applied in the conversion of labor difficulties, job risks, difficulties in obtaining and financial liability increases into monthly amounts.
  2. Those who are employed on a contractual basis in accordance with Article 3 (c) of the Decree Law No. 399. The wage ceiling of the employee was increased to 3,611.50 TL

... "is included.

Accordingly, the difference in severance pay paid to the personnel who left their job between 01/01/2012-31/05/2012 on the coefficients increased by the Decision of the Arbitral Board of Public Officials dated 29/05/2012 and numbered 2012/1; It will be considered within the scope of the exception according to section 7 of Article 25 of the Income Tax Law.

Posted in Taxation Law, Labor Law


How to Calculate Stamp Tax in the Event of a Lease Contract Transfer?

Reference: Veysi Seviğ - Bumin Doğrusöz

Stamp Tax In The Event Of A Contract Extension

I want to extend the lease term of the apartment I live in for another year starting from August. However, the landlord says this would be subject to stamp tax. Is this correct?

In case the current lease agreement is valid for one year and there is a provision in the part covering special conditions for the lease contract to be extended for the same duration, if the parties consent to, and you decide upon extending it for a year, then the extension is subject to stamp tax. Thereby, according to the Stamp Tax Law, parties must fulfill the liability. By force of the third paragraph of Article 14 of the Stamp Tax Law, in the event of the contract extension, the same amount or same proportion is collected as tax. By this provision, the current lease agreement between you and the owner is now extended for a year, and this transaction you conduct is the status of redetermining the current lease duration by extending it for a year.

Additionally, as it is known, the stamp tax rates increased in 2010 and the rate to be applied in lease contracts is 1.65 per thousand. This rate will apply for the annual rent as you extend the contract for a year.

Posted in Taxation Law

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