Turkey:
CIRCULAR Number 4 - Explanations Regarding The Amendment Introduced In The Incom
23 January 1997
Arthur Andersen
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In addition to our Circular No. 88 concerning the re-determination of certain amounts stipulated in the Income Tax Law and the income tax withholding rates, our explanations regarding the amendment introduced in the Income Tax General Communique‚ Series No. 200, published in the Official Gazette dated 31.12.1996, numbered 22864, are provided below.
1
CONCERNED ARTICLE PROVISION INTRODUCED
SMALL FARMER EXEMPTION
Article 13 in the Income Tax Law The criterion for annual sales
for the applicability of
exemption on the agricultural
gains of the small farmer has
been increased to TL 864
Million, to be applied on the
revenues earned during
calendar year 1996.
EXEMPTION FOR IMMIGRANTS
AND REFUGEES
Article 17 in the Income Tax Law Tax exemption applied on the
earnings and revenues paid to
immigrants and refugees for
1997, has been raised from TL
18 million to TL 31,100,000.
EXEMPTION FOR REVENUES FROM
IMMOVABLE CAPITAL
Article 21 in the Income Tax Law Applicable on the revenues
earned in 1996, the Exemption
for Revenues from Immovable
Capital has been raised from TL
24,000,000 to TL 41,400,000.
FREE MEAL EXEMPTION
Article 23/8 in the Income Tax Law The exemption provided on the
cost of the free meals
provided to the wage earners
has been raised from TL 200,000
to TL 300,000 daily.
LUMPSUM EXPENSES IN
AGRICULTURAL GAINS
Article 53 in the Income Tax Law Applicable on the income earned
in 1996, the total proceeds in
agricultural gains to be taxed
on lumpsum expense basis has
been raised from TL 1 billion
to TL 1,728,000,000.
2
CONCERNED ARTICLE PROVISION INTRODUCED
LUMPSUM EXPENSE BASIS
IN INDEPENDENT PROFESSIONAL EARNINGS
Article 68 In the Income Tax Law During the determination of the
earnings of the Independent
Professionals in 1996, the
lumpsum expenses total has been
raised from TL 2 Million to TL
3,400,000.
EXEMPTIONS ON CAPITAL GAINS
Repeated Article 80 in
the Income Tax Law Applicable on the gains earned
in 1997, the amount to be
exempted from tax in capital
gains has been raised from TL
3,200,000 to TL 5,500,000.
MINIMUM AGRICULTURAL EARNINGS
Article 112 in the Income Tax Law Applicable on the gains earned
in 1997, the amount that does
not require any explanations
for minimum agricultural
earnings has been raised from
TL 2 million to TL 3,400,000.
Please do not hesitate to contact us if you need any additional information regarding the matters discussed here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Mustafa Camlica, Tax Manager on tel: +90 212 232 1210, fax: +90 212 230 8231, or e-mail mustafa.camlica@arthurandersen.com or enter a text search 'Arthur Andersen' and 'Business Monitor'.
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