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What is the status of the payments made for placing an advertisement on websites created abroad by foreign companies? (In Turkey)

Payments made for the purchase of advertising publishing services for the purpose of introducing companies over the internet and marketing purposes, are the payments for trade and foreign companies do not have a workplace or permanent representative in Turkey, these are not taxed in Turkey. Consequently, corporate tax will not be deducted as well.


Source: GİB
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 Karen Audit 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.


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If a company is promoted abroad through foreign advertising companies, will tax be deducted on the payments to be made to the advertising company? (In Turkey)

In the event that advertising services are within the scope of self-employed activities such as advertisement design, implementation, strategic planning, media planning and media strategy, corporate tax must be deducted from the payments made to organizations abroad in return for these services, rather than publishing the advertisement and advertising services taken for the purpose of promoting a company abroad directly with announcement and advertising.

If there is an agreement on the prevention of double taxation between the Republic of Turkey and country to which payment made (if any), the issues must be evaluated in terms of the provisions of the agreement.

Moreover, if the company has commercial film prepared to foreign company to be used in Turkey, tax will be deducted from the payments in the same scope.


Source: GİB
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 Karen Audit 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.


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What is the nature of application licenses for services such as programs and family protection passwords imported by a telecommunications company to provide the safe use of the e-mail service? Will there be any stoppage on the payments made for these services? (In Turkey)

In the second paragraph of Article 30 of the Corporate Tax Law No. 5520, which regulates the tax deduction in the limited liability, corporate tax deduction is made on the amounts paid or accrued in cash or on account in  return for sale, transfer and assignment of copyright, concession, invention, operation, trade name, trademark and similar intangible rights regardless of whether it is included in commercial or agricultural income.

Within the framework of this regulation, tax deduction is required for the royalties paid to the foreign company for the licenses related to the services providing the secure use of the e-mail service.


Source: GİB
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 Karen Audit 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.


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Prison Statistics, 2018 in Turkey

Number of persons in prison increased by 14%


Source: TUIK
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 Karen Audit 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.


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The income obtained from R&D, software and design activities in technology development zones are exempt from income and corporate tax, according to the Technology Development Zones Law No. 4691. Is it possible to benefit from R&D and design discounts regarding these earnings? (In Turkey)

Since taxpayers who prefer to benefit from the incentives in the Law No. 4691 cannot benefit from the incentives in the implementation of the Law No. 5746, they cannot benefit from R&D and design discounts as well.

However, if it is preferred and the conditions are met, it is possible to benefit from the supports in Law No. 5746.


Source: GİB
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 Karen Audit 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.


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Does the fact that the computer program was acquired by downloading with a password directly on the internet lead to a different application against tax deduction in Turkey?

If computer software products are imported from customs within the carrier media product such as CDs, floppy disks and activated by a password downloaded over the internet or if the computer program is directly purchased via a password over the internet, there will not be any difference in taxation of payments to be made abroad.

In the event of payments made to the countries which have double tax prevention agreements with our country, if there is a provision in the related agreement, these provisions shall be taken into consideration first.


Source: GİB
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 Karen Audit 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.


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The number of road motor vehicle registrations increased by 29.8% compared with the previous month

Road Motor Vehicles, October 2019, in Turkey

The total number of road motor vehicles registered to the traffic reached 23 million 153 thousand 556 by the end of October. Within the total, cars represented 54.1%, followed by small trucks 16.4%, motorcycles 14.3%, tractors 8.2%, trucks 3.7%, minibuses 2.1%, buses 0.9% and special purpose vehicles 0.3%.

In October, 68 069 road motor vehicle registrations were recorded

Within 68 thousand 69 vehicle registrations in October, cars accounted for 63.7%, followed by motorcycles 17.7%, small trucks 11% and tractors 4.6%. Minibuses, buses, trucks and special purpose vehicles constituted 3% of new registrations.

The number of road motor vehicle registrations increased by 29.8% compared with the previous month

In October, the number of road motor vehicle registrations increased by 29.8% compared with the previous month. Cars, minibuses, small trucks, trucks and tractors increased by 51%, 8%, 53.9%, 34.8% and 19% respectively. Buses, motorcycles and special purpose vehicles decreased by 8.2%, 16.7% and 13.3%.

The number of road motor vehicles registered increased by 78.6% compared with the same month of the previous year  

In October, the number of road motor vehicle registrations increased by 78.6% compared with the same month of the previous year. Cars, minibuses, small trucks, trucks and motorcycles increased by 134%, 42.1%, 74.4%,109.9% and 21.1% while buses, special purpose vehicles and tractors decreased by 3%, 70.5% and 19.6% respectively.


In the period of January-October, the total number of road motor vehicles in traffic increased by 281 621

While 258 thousand 848 road motor vehicles were withdrawn, 540 thousand 469 road motor vehicles were added in January-October period. Hence, the total number of road motor vehicles registered increased by 281 thousand 621.

919 501 road motor vehicles handed over in October

Among 919 thousand 501 vehicles handed over(1), cars accounted for 73.4% followed by small trucks 15.4%, motorcycles 4.1% and tractors 2.8%. Minibuses, buses, trucks and special purpose vehicles constituted 4.3% of the handed over motor vehicles in October.

The ratio of cars registered using diesel was 37.8%

At the end of October, among 12 million 515 thousand 365 registered cars, the share of diesel-fuelled cars was 37.8% followed by LPG-fuelled cars with 37.5% and gasoline-fuelled cars with 24.3%. The share of electric or hybrid cars is 0.1% and the cars with unknown(2) fuel type was 0.3%.

In October, 43 393 cars were registered to the traffic

In terms of the distribution of trademarks for the 43 thousand 393 new registered cars in October, Renault  recorded 14.6%, Volkswagen 11.1%, Fiat 10.4%, Hyundai 6.9%, Toyota 6.2%, Honda 5.9%, Opel 5.3%, Peugeot 4.5%, Skoda 4.5%, Ford 4.2% and the other trademarks 26.5% of the total.

Most frequent engine size was 1501-1600 for registered cars

Within 300 thousand 979 cars registered to traffic in January-October period, 38.5% of them had engine size 1501-1600, 28.2% had 1401-1500, 13.1% had 1301-1400, 12.7% had 1300 or less, 6.2% had 1601-2000, 1.1% had 2001 and above engine size.

Most frequent colour was white for registered cars

Within 300 thousand 979 cars registered to traffic in January-October period, 54% of them were white, 24.1% were grey, 6.9% were black, 5.6% were red and 9.4% were in other colours.

The next release on this subject will be on January 6, 2020. 
                                                                                                                                                                

EXPLANATIONS

(1) Road motor vehicles handed over are that the owners of them had changed through the notaries for one time or more.

(2) Unknown includes the cars for which the type of fuel field in the license was entered incorrectly or left blank.


Source: TUIK
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 Karen Audit 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.


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Which law contains the R&D discount regulation in Turkey?

Paragraph (a) of the first paragraph of Article 10 of the Law No. 5520 on the R&D deduction was repealed as of 09/08/2016 in accordance with the provisions of Article 57 of the Law No. 6728.

With Article 60 of Law No. 6728, Article 3/A was added to Law No. 5746. In this article, the R&D deduction for the R&D and innovation activities carried out by the income and corporate taxpayers within their enterprises are regulated.

100% of the amount of research and development expenditures on income and corporate taxpayers in search of new technology and information exclusively realized within their enterprises, provided that the Ministry of Industry and Technology considers these projects as R&D and innovation projects, will be deducted in the determination of income, pursuant to Article 10 and Article 89 of Law No. 193.

Accordingly, in the applications made within the scope of Article 3/A of the Law No. 5746 and the discount related to research and development projects for the search for new technology and information, it will be made advantage of R&D discounts by taking into consideration the Law No. 5746 and related regulations.

On the other hands, the R&D discount will be utilized in accordance with the provisions of paragraph (a) of the first paragraph of Article 10 of the Corporate Tax Law regarding the projects made before the date of 09.08.2016 within the scope of the Corporate Tax General Communiqué No.6728

Moreover, within the framework of Article 3 of Law No. 5746, it can be made advantage of R&D and design discounts.


Source: GİB
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 Karen Audit 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.


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Can pecuniary and non-pecuniary damages and interests paid due to the mistake of the enterprise owner or employees be stated as an expense?

Can we deduct pecuniary and non-pecuniary damages paid due to the mistake of the enterprise owner or employees and legal interest regarding compensations in the determination of the corporate income?

In order to be able to make a deduction for the paid compensations as expenses, they must be related to the work, be paid in accordance with the contract, proclamation or law order and the damage must not be caused by the fault of the enterprise owner or employees. It is not possible to state the expenses of the compensations paid without contract, declaration or law order. Compensation arising from the mistake of the enterprise owner or employees shall be deemed as expense, which is not legally accepted, even if it is paid in accordance with the court decision.


Source: GİB
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 Karen Audit 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.


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Consumer price index (CPI) increased by 0.38% in Turkey

Consumer Price Index, November 2019


Source: TUIK
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 Karen Audit 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.


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