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.

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.

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.

Prison Statistics, 2018 in Turkey

Number of persons in prison increased by 14%

Prison population was 264 thousand 842 on 31 December, 2018 with an increase of 14% compared to the same date in 2017.

Prison population, 31 December, 2013-2018

The 96.1% of prison population was male

Out of prison population on 31 December, 2018, 78.9% was at the status of convicts and 21.1% was at the status of arrested. The 96.1% of the prison population was male and 3.9% of them was female.

In Turkey, 323 persons were in prison per 100 thousand population

As of 31 December, while 188 persons per 100 thousand population were in prison in Turkey in 2013, it reached to 288 in 2017 and 323 in 2018 by a continuous increasing every year. Whereas, it was 401 per 100 thousand of aged 12 and over population in 2018.

Number of convicts entered into prison was 266 thousand 889 in 2018

When every entrance record of a convict entered into prison more than once within the same year considered different, number of entrance records of convicts between 1 January-31 December 2018 was 266 thousand 889. When every discharge record of a convict discharged from prison more than once within the same year considered different, number of discharge record of convicts between same dates was 215 thousand 170. 96.2% of convicts received and 96.1% of convicts discharged were males.

Number of juveniles entered into prison and reformatory as convict was 2 thousand 95

While the number of juveniles (12-17 age group) was 2 thousand 95 according to the age at the time of received into prison with an increase of 1.9% compared to previous year, it is 14 thousand 502 according to the age at the time of committed crime with an increase of 22.8% compared to previous year.

Theft was the most committed crime for received convicts

In the case of convicts received into prison committed more than one crime, one of the crimes resulted in major punishment was taken as main crime. In this context, 17% of convicts who were received into prison between 1 January and 31 December 2018, committed theft, 12.4% of them committed assault, 6.7% of them committed production and commerce of drugs, 5.8% of them committed opposition to the Bankruptcy and Enforcement Law and 3.5% of them committed homicide.

Flow population received into and discharged from prison, 1 January-31 December, 2012-2018

The 36.8% of convicts were primary education graduates

When convicts received into prison between 1 January and 31 December, 2018 was examined by committed crime, 47.3% of convicts committed theft were graduated from primary education, 15.1% of them were graduated from junior high school and vocational school at junior high school level, 13.5% of them were graduated from primary school. The 37.5% of convicts committed assault were graduated from primary education, 23.4% of them were graduated from high school and vocational school at high school level and 17% of them were graduated from primary school.

The 29.9% of convicts committed homicide were primary education graduates

The 36.9% of convicts committed production and commerce of drugs were graduated from primary education, 19% of them were graduated from high school and vocational school at high school level and 18.8% of them were graduated from primary school. The 29.9% of convicts committed homicide were graduated from primary education, 27.6% of them were high school and vocational school at high school level, 17.2% of them were graduated from primary school. The 37.7% of convicts committed sexual crimes were graduated from primary education, 20.6% of them were graduated from high school and vocational school at high school level and 17.2% of them were graduated from primary school.

Most committed crime for higher education was assault

When convicts received into prison between 1 January and 31 December 2018 was examined by education and the sequence of committed crimes, for 30.1% of those who were literate but not graduated from a school, 25.6% of those who were illiterate, 21.9% of those who were primary education graduates, 18.6% of junior high school and vocational school graduates and 13.9% of those who were primary school graduates, the theft was the first order; the assault was the first order for the high school and vocational high school graduates with 13.3% and for the higher education graduates with 10.5%.

The next release on this subject will be on December, 2020.

___________________________________________________________________________

EXPLANATIONS

Data source of these statistics is the registers of General Directorate of Prisons and Detention Houses. Data are compiled from the database of National Judicial Network Information System conducted by the Ministry of Justice. Prison population is defined by two different time references. Stock population; Total persons as convicts and arrested in prison as of 31 December. Flow population; Convicts received into prison and convicts discharged from prison between 1 January and 31 December. In this context, if a person is received into prison/discharged from prison more than once within the year, he/she is counted as a separate person for each time.

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.

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.

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.

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

Road Motor Vehicles, October 2019, in Turkey

At the end of October, the total number of road motor vehicles registered reached 23 153 556

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.

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.

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.

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

Consumer Price Index, November 2019

Consumer price index (CPI) increased by 0.38%

A rise in general index was realized in CPI (2003=100) on the previous month by 0.38%, on December of the previous year by 11.01%, on same month of the previous year by 10.56% and on the twelve months moving averages basis by 15.87% in November 2019.

The highest monthly increase was 2.69% in clothing and footwear

In November 2019, the indices rose for furnishing and household equipment 0.59%, for communication 0.39%, for housing 0.36% and for transportation 0.33%.

The highest monthly decrease was 0.44% in miscellaneous goods and services

In November 2019, the other group that indicated a decrease was hotels, cafes and restaurants by 0.15% amongst the main groups.

The highest annual increase was 43.35% in alcoholic beverages and tobacco

Education with 14.35%, miscellaneous goods and services with 14.03%, health with 13.85% and hotels, cafes and restaurants with 13.07% were the other main groups where high annual increases realized.

The indicator for CPI having specified coverage (B) increased by 0.59%

A rise in CPI excluding unprocessed food, energy, alcoholic beverages, tobacco and gold was realized in CPI (2003=100) on the previous month by 0.59%, on December of the previous year by 10.31%, on same month of the previous year by 9.90% and on the twelve months moving averages basis by 15.13% in November 2019.

In November 2019 within average prices of 418 items in the index, average prices of 33 items remained unchanged while average prices of 296 items increased and average prices of 89 items decreased.

Consumer price index, November 2019
[2003=100]

The next release on this subject will be on January 03, 2020.

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.

Archives for News

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

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)

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)

Prison Statistics, 2018 in Turkey

Number of persons in prison increased by 14%

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)

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?

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

Road Motor Vehicles, October 2019, in Turkey

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

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

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

Consumer Price Index, November 2019