Obligation of income tax of legal persons (corporations) is subject to corporate tax, while incomes of natural persons (people) are subject to income tax. The concept of income, on the other hand, is the amount of income and earnings that a real person has earned in a calendar year in general. The concept of income tax is regulated in the Revenue Tax No. 193.
Elements of Income Subject to Income Tax
The elements of income subject to income tax are as follows;
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Fees,
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Income from agriculture, commercial earnings,
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Income from moveable capitals,
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Self-employment earnings, Real estate capital gains,
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Other earnings and revenues
The earnings we have mentioned are the items of the income subject to income tax. Unless there is a contrary provision in the law, these earnings and incomes are taken into consideration in determining the income.
What is Full Obligation?
Those who are in this category are also full taxpayers and have to pay tax on all of their earnings within or outside of Turkey. Those who have settled in Turkey: citizens, whose domicile is in Turkey in accordance with the provisions of the Turkish Civil Code, can stay in Turkey continuously within a calendar year. Those who have resided for more than 6 months are counted as a resident in Turkey. Temporary departure of persons who have been residing in Turkey continuously for more than six months in a calendar year will not interrupt the residence period. Citizens of the Republic of Turkey residing in foreign countries due to the works of the aforementioned departments, establishments, enterprises and institutions, whose official offices and institutions are located in the central state of the Republic of Turkey annually.
What is Limited Liability to Tax?
Limited liability to tax refers to real persons who are not resident in the state of the Republic of Turkey are taxed only on the income and earnings they have earned in Turkey.
Earnings and Earnings are obtained In Turkey under the Following Conditions
In terms of income tax liability, in commercial earnings, in general, the owner of the business in Turkey where any trading transaction is carried out or has a permanent representative and the income must be provided in these places or through these representatives. Even under these conditions, citizens whose business centre is not located in Turkey and those who send the goods or services they have purchased or manufactured in Turkey to the states for the purpose of being exported, without selling them in Turkey, are not deemed to have been earned in Turkey.