Elements of Income Tax

Real persons who earn various incomes in Turkey are obliged to pay income tax according to the law. The tax calculated during the year on some income and earnings of real persons is called income tax. Some incomes obtained by natural persons within the borders of the country constitute the subject of income tax. These types of income are called the elements or subject of income tax. In order for these incomes to be subject to taxation, they must be obtained by the activities of real persons. Otherwise, it will be subject to corporate tax.

Who is the Income Tax Payer?

A natural person may obtain a commercial or agricultural gain due to the activities he does on his behalf. In addition, earnings from self-employment activities and gains from movable and immovable assets are also related to income tax. In order to be liable to pay due to these incomes, it is also necessary to live in Turkey or stay in the country for at least six months of the accounting year. Those who live in Turkey for 6 months or more in a calendar year and those who work abroad on behalf of public or private institutions based in Turkey are income tax payers in Turkey.

When is Income Tax Paid?

The incomes of the said income taxpayers in a calendar year are included in the subject of the tax in the next year. After the taxpayers have prepared their returns, they must pay their taxes until the last day of March. However, this is only for the first instalment. The second instalment must be paid by the last working day of July. However, if the taxpayer is taxed according to the simple method and the tax is calculated in that way, the tax payment month will be February and June.

What are the Elements of Income Tax?

Which subject will be included in income tax and which income will be taxed are determined by law. The tax subjects in question are called the elements of the tax. The components of the income tax, the subject of the income tax or the elements of the income tax are the types of income.

  • All of the commercial income
  • Income from agricultural activities
  • Payments received for work done
  • Income of self-employed persons from these activities
  • Capital income from real estate
  • All income from property capital
  • Other income

Those who obtain these gains and incomes prepare a declaration documenting their earnings in February of the next calendar year and submit them to the tax office. Calculated taxes are paid to the tax office or banks, with the first instalment in March and the second in July.