Effective from 01.01.2018, taxpayers of income tax and corporates are enabled 5% reduction on calculated individual income tax and corporate tax.
- Who will benefit from 5% Tax Discount?
Following taxpayers are allowed to make use of 5% tax discount providing that they meet statutory requirements
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Individuals who generates profit from commercial and agriculture activities and self-employments
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Corporations (Except for those which operates in the bank and finance sectors, insurance and private pension companies)
-What is the condition to benefit from the discount of 5%?
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The year which belongs to the tax return* in which the discount is to be calculated and the tax returns which belongs to previous last two years of this year should be filed within statutory period (*The expression of tax returns covers only VAT, Withholding, Corporate Income Tax, Advance Corporate Income Tax, Individual Income Tax, Special Consumption Tax, Declaration of Social Security)
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Company should not be imposed additional tax assessment by tax authorities or levied penalty due to tax investigation in the year to which belongs to tax return in which the discount is to be calculated and previous last two years of this year
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No tax debt more than 1.000,00 TL as of the date on which the tax return is filled.
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No tax crimes committed in the year to which tax returns belong and previous last four year of this year.
OTHER ISSUES;
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In order to be able to benefit from the tax discount, not only Individual Income Tax Return and Corporate Tax but also other tax returns submitted to the Ministry of Finance should be filed in statutory period and paid on time.
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The discount is not allowed to be more than 1.200.000,00 TL for the fiscal year of 2019
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If amount of the discount is higher than tax payable, in this case residual amount will be deducted from other taxes which are arisen no later than following 1 year after submission of the tax return.
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If A company misleads the tax authority about its tax returns issued in relevant years in order to benefit from the 5% tax discount, the company/taxpayer is demanded to pay the reduced amount to tax office in case the tax authority notices to be misled.
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Tax returns reissued for the purpose of correction voluntarily are not regarded as violation of this condition.