Skip to main content Skip to search

Archives for News

What is Joint Stock Company?

07.10.2017

1- WHAT IS JOINT STOCK COMPANY?
1.1-
 Joint-stock company is a company whose capital is declared and divided into shares and who is only responsible for its assets because of its debts.
1.2- Shareholders are responsible to the company with their shares that they undertake.

***Except special provisions, these parts of provisions are applied to joint stock companies being subjected to special provisions.

2- WHAT ARE INCLUDED IN THE SUBJECT OF JOINT STOCK COMPANIES?
Joint stock companies can be established for every kind of legal economical purposes and subjects.

3- WHAT SHOULD BE THE AMOUNT OF CAPITAL IN ORDER TO ESTABLISH A JOINT STOCK COMPANY?
3.1-
 Registered capital, which is undertaken as a whole in articles of incorporation, cannot be less than 50.000 Turkish Lira. As for non-public joint stock companies which accepts registered capital system showing the maximum realm of authority of board of directors for capital increase, initial capital cannot be less than 100.000 Turkish Lira. Minimum capital amount can be increased by the Council of Ministers.
3.2- Within the scope of this law, initial capital in joint stock companies with registered capital is compulsory to provide in the establishment and when they move into this system. On the other hand, issued capital represents the total amount of nominal value of issued shares.
3.3- Unless non-public joint stock companies have necessary conditions, they are able to log out of registered capital system by getting permission from Ministry of Customs and Trade. Moreover, if they fail to fulfil the conditions while logging in the system, they can be logged out of the system by the Ministry even if they have no claim.

***Provisions of article 12 of Capital Market Law dated 28.07.1981 and numbered 2499 are reserved.

Source: Turkish Commercial Code

Read more

What are the Social Security Institution (SSI) incentives for new employees to be employed in companies in manufacturing, information and other sectors?

Due to employment within the scope of Provisional Article 19 of Law Numbered 4447, for how many months can we benefit from the retroactive incentive on premium on December 2018? If we benefit from the retroactive incentive on premium, can we also benefit from the retroactive incentive on income tax on the withholding tax declaration of November 2018?

(12.12.2018)

 

Provisional Article 19 was added to the Unemployment Insurance Law Numbered 4447 and it is stated in the said Article that; ‘’Premium support is provided to employers from the Fund and it will be deducted monthly from all the premiums the employer will pay to the SSI;

-by not exceeding the amount calculated by multiplying the daily gross minimum wage and the number of days that the insured is going to pay premium, in the case where the company operates in the manufacturing or information sector,

-in the total amount of the premiums of the insured and employer’s shares, calculated on the insured person’s income dependent on premium designated in accordance with article 82 of Law numbered 5510,

– in the total amount of the premiums of the insured and employer’s shares, calculated on the lower limit of the insured person’s  income dependent on premium designated in accordance with article 82 of Law numbered 5510, in the case where the company operates in other sectors,

on condition that the employees who are selected among the unemployed that are registered to the Institution and employed between 01.01.2018 and 31.12.2020 by the private sector employers within the scope of subparagraph (a) of first paragraph of article 4 of Law numbered 5510;

-are not reported to the SSI for 10 days in total during the period of three months before the month they are employed in, within the scope of subparagraphs (a) and (c) of the first paragraph of article 4 of the Law numbered 5510 and

-are not insured within the scope of subparagraph (b) of the first paragraph of article 4 of Lae numbered 5510, except for voluntary insurance,

-are added to the average number of insured in the withholding tax return and premium service declaration or monthly premium and service declarations that were reported by the company they were employed the year before.

 

 

 

 



Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more

Is it possible to fine a company for violating the Collective Labour Agreement?

There are employees who are both union members and nonunion members in a manufacturing company. Labor inspectors detected that there was a failure in accordance with the article on wage on the collective labor agreement of some employees for the date of 2016 October and 2017 September. What are the administrative fees and other burdens to be imposed on the company for this situation?
(12.12.2018)

 

You can calculate the administrative fee and late fee by drafting an adjustment and the attachments in a virtual environment.

 


Source :ISMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more

Do we have to pay Minimum Living Allowance (MLA) for foreign employees who have work permit?

Is a taxpayer required to follow the same MLA procedure for foreign people whom he is going to employ by getting them a work permit?
(12.12.2018)

All 4a employees are subject to the same provisions.

 


Source :ISMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more

On which account can we follow the expenses regarding the inspection visits to the worksite outside the city?

The Limited Company whose head office is in İstanbul started their works in Çanakkale. Partners and some employees go to Çanakkale from İstanbul to inspect the construction works. Should we record the gas, parking area, hotel invoices into the 770 GENERAL ADMINISTRATIVE EXPENSE ACCOUNT or 730 GENERAL PRODUCTION EXPENSE ACCOUNT? And also, should we record the representation entertainment expenses into the 770 account or 730 account?

All the expenses you mention are followed on 770 account.

 


Source :ISMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more

How to Calculate The Costs of Stock Certificates Obtained Through Capital Increase?

Cost Value of Stock Certificates Obtained Through Capital Increase

In the case where the companies increase the capital with capital reserves, the cost value of stock certificates that are either previously obtained or obtained through the increase of capital will be determined by splitting the cost value of previously owned stock certificates to the number of stock certificates obtained after the increase of capital.

E.g. Mr. (A) bought 100 stock certificates of (B) Incorporated Company for TRY 45.000.000 on 03.02.1999. (B) Inc. increased its capital by 50% to be fully covered from the capital reserves on 09.03.1999. 500 stock certificates were given to Mr. (A) following this transaction.

Therefore, the cost value of every stock certificate that Mr. (A) obtained after the increase of capital will be TRY 30.000 by splitting the paid TRY 45.000.000 to the total number of stock certificates.

If the capital is increased through using the profit reserves, the cost value of stock certificates obtained through this transaction will be calculated by splitting the sum of cost value of previously owned stock certificates and the nominal value of the newly purchased stock certificates to the total number of stock certificates obtained after the increase of capital.

E.g. Mr. (A) bought 1000 stock certificates, whose nominal value is TRY 1.000, for TRY 15.000.000 from (B) Incorporated Company on 03.02.1999. (B) Inc. increased its capital by 50% to be fully covered from the capital reserves on 19.02.1999. Mr. (A) was given 500 stock certificates for this transaction.

The cost value of every stock certificate that Mr. (A) obtained after the increase of capital will be calculated as TRY 10.333 [(15.000.000+500.000)/ 1.500=] by splitting the total nominal price of stock certificates obtained through the increase of capital by paying TRY 15.000.000 for 1.000 stock certificates [(500×1000=) TRY 500.000], to the total number of stock certificates [(1.000+500)=1.500].

When companies aim to increase the capital in cash, the cost value of stock certificates which were obtained through paying their nominal values through owners’ exercising their right of priority will be calculated by splitting the total of cost value of previously owned stock certificates and the cost of newly purchased stock certificates to the number of stock certificates that are obtained after the increase of capital.

 


Source : Income Tax Law Numbered 232
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more

Is it possible for the temporary certificates to replace stock certificates?

Temporary Certificates

 

As you know, temporary certificates are securities that are issued by the incorporated companies to substitute for the stock certiciates.  Temporary certificates allow its owners to gain the rights of share ownership such as attending the general assembly meetings, voting, getting dividends. They become invalid once the stock certificates are prepared by the incorporated company and delivered to the partners.

 

Therefore, for the taxation of incomes resulting from the disposal of the certificates, the provisions of the Income Tax Law regarding the taxation of incomes resulting from the disposal of stock certificates are applied.

 

Accordingly, in the case where the certificates are disposed within two years following the date of acquisition, the income will be subject to the income tax as gain from appreciation and if the certificates are disposed after two years following the date of acquisition, the income will not be subject to the income tax.

 

Furthermore, the replacing of certificates with stock certificate, hence the date when the stock certificates are obtained will be regarded as the date of acquisition of stock certificates.

 


Source :Income Tax Law Numbered 232
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more

How do we determine the date of acquisition of stock certificates resulting from capital increases?

How do we determine the date of acquisition of stock certificates resulting from capital increases?

For the taxation of income resulting from the disposal of stock certificates, the date of acquisition of the stock certificates that are obtained  through adding the capital and profit reserves to the capital will be based on the date of acquisition of the previous stock certificates.

E.g. Mr. (A) bought 1000 stock certificates of (B) Incorporated Company on 03.02.1999. (B) increased his capital by 50% to be fully covered from the capital reserves on 09.03.1999. Mr. (A) bought 500 stock certificates after this transaction. 03.02.1999 will be the basis of the date of acquisition of these 500 stock certificates.

When companies aim to increase the capital, the partners take the stock certificates that represent the increased capital by means of exercising their rights of priority. In the case where the partners sell the stock certificates that represent the capital increase by means of limiting their rights of priority, it will be deemed that a new purchase transaction took place.

 


Source :Income Tax Law Numbered 232
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more

Am I suppose to draw up a Note of Expenses for the real-estate I bought for the private company?

My taxpayer is a private company using the balance sheet method. It wants to buy the place in which it operates. The seller is a normal citizen. What are the required steps to enter this apartment into our accounting records? Can we do so through the title deed transactions directly? It is possible to calculate the VAT for this?

 (11.12.2018 16:14)

 

A note of expenses is drawn up without calculating the VAT and Income Tax stopage for the real-estate that will be bought from a non-taxpayer.

 


Source :ISMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more

What Are The Expenses To Be Deducted From The Income Resulting From The Selling Of Shares?

Expenses To Consider When Determining the Income

When determining the income resulting from the disposal of the shares, it is possible to apply a reduction on the cost value of the disposed shares from the sale value as well as the expenses made because of the disposal and that are undertaken by the seller.

It is not possible to apply a reduction on the financial expenses regarding liabilities used when determining the income resulting from the disposal of shares.

 

 


Source :Income Tax Law Numbered 232
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither KarenAudit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


 

Read more