Income tax is the taxes paid to the government by the sole proprietorships established by real persons on the sum of their earnings in a calendar year starting on 1 January and ending on 31 December. These incomes include real estate sales, income from real estate or movable property, self-employment earnings and salaries of government officials. Income tax is one of the taxes described as direct tax in the Turkish tax system. The reason why the said tax is direct is that the taxpayer pays his tax and the tax burden cannot be transferred to others.
Who Pays Income Tax?
According to the principles of the Revenue Law valid in Turkey, the earnings of real persons within the above-mentioned types are subject to tax. The person who is obliged to pay tax is also called taxpayer by law. Those who stay in Turkey for more than six months without interruption in a specified calendar year and those who receive one or more of these incomes are required to pay the tax as income tax payers. These taxpayers are taxed on all their income and earnings they have earned in Turkey and abroad. Real persons who do not reside in Turkey, namely, who do not live permanently, are considered as limited taxpayers.
Limited taxpayers are only taxed on their income and earnings in Turkey. Self-employed people are also liable to pay taxes. In other words, those who earn income by working in a private workplace, such as private doctors, lawyers or accountants, who do business without being responsible to any boss, institution and organization are also subject to income tax and are obliged to pay their taxes when the time comes.
How Is Income Tax Paid?
Income tax is calculated on the earnings obtained within one year and paid to the tax office in the tax payment period of the following year. Taxpayers who obtain the mentioned incomes pay their taxes to the tax offices where their headquarters and workplaces are located, together with the declaration they must submit to the authorized tax offices until 25 March, also known as the taxation period. Tax payments can also be made through banks.
When Is Income Tax Paid?
Income tax is paid in two equal instalments in the following year of the calendar year in which the income is earned. The first instalment period of income tax is March and the second instalment period is July. The taxpayer must pay the first instalment of the calculated tax by the last working day of March and the second instalment by the end of the working hours on the last working day of July. If your income consists of trading profits determined by a simple method, you can pay the first instalment by the evening of 25 February and the second by the evening of 25 June. The simplicity here is the tax procedure method. The taxation period of the simple method differs from the actual procedure.