Pathway: LEGISLATION Tax Legislation Income Tax Law No 6009

Income Tax Law No 6009

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1st  August 2010 MONDAY 

Official Gazette

Number : 27659

LAW

LAW ON AMENDING THE INCOME TAX LAW WITH SOME LAWS AND STATUTORY DECREES

 

 

ARTICLE 3- Article number 103 of the Income Tax Law dated 31/12/1960 and number 193 has been amended as follows:

“ARTICLE 103- Incomes subject to income tax are taxed as follows:

15% up to 8.800 TL;

1.320 TL for 8.800 TL-part of 22.000 TL, 20% for more;

3.960 TL for 22.000 TL-part of 50.000 T;,

(3.960 TL for 22.000 TL-part of 76.200 TL for income from wages), 27 % for more;

11.520 TL for 50.000 TL-part of the excess 50.000 TL;

(18.594 TL for 76.200 TL-part of the excess 76.200 TL), 35% for more.”



 

ARTICLE 6- Following provisional article has been added to Law No 193: 

“PROVISIONAL ARTICLE 78- If the income tax withholding amount made until the publication date of this Law for wage payments in 2010 calendar year is more than the computed tax amount as per the provision of amendment made in article 103 through said law, the difference incident to tax amount is cancelled; if collected, such amount will be dropped from the income tax of the taxpayers to be paid in next periods; if cannot be dropped, same will be rejected and refunded.

If same is less than the computed tax amount as per the same, tax officers of company will declare the occurrence through an additional statement to be issued as a whole through deducting from the first wage payment to be made following the publication date of this Law during the submission of the withholding tax return and within the payment period thereof (save those who are not obliged to submit such withholding tax return) and pay the same. Stamp duty for such statements will not be charged additionally. Default interest and tax penalty will not be levied on the difference corrected within cited period; if said less amount is not recovered during foregoing period it will create tax loss on this date. Principles and procedures for implementation of this provision are determined through the Ministry of Finance. 

General Communiqué on Income Taxes

(Serial No: 274)

1. Introduction  

Income Tax tariff within the article 103 of Income Tax Law No 193 has been amended to be effective as from 1/1/2010 by virtue of law incident to Amending the Income Tax Law No 6009 with some laws and statutory decrees; the issues as to deduction of withholding of excess amounts of income taxes  according to new tariff, made according to previous tariff  prior to 08/01/2010, the publishing date of  Income Tax Law dated 1/1/2010 No 6009 for wage payments from taxes to be paid or rejection and refunding thereof and payment procedures of taxes for taxes that have been determined to be cut short through additional cutting constitute the subject of this communiqué.


2. Legislation to the issue

Article 103 of the Income Tax Law has been revised by virtue of Law No 6009 and it has been stated that incomes subject to income tax will be taxed at following rates as per the amendment:

up to 8.800 TL                                                                                                                                     15%

1.320 TL for 8.800 TL-part of 22.000 TL for more                                                                     20% 

3.960 TL for 22.000 TL-part of 50.000 TL

(3.960 TL for 22.000 TL-part of 76.200 TL for income from wages), for more                    27 % 

11.520 TL for 50.000 TL-part of the excess amount of 50.000 TL

(18.594 TL for 76.200 TL-part of the excess amount of 76.200 TL), for more      35% 

On the other  hand, the following provision has been included in the provisional article 78 added to Income Tax Law by virtue of Law No 6009:” If the income tax withholding amount made until the publication date of this Law for wage payments in 2010 calendar year is more than the computed tax amount as per the provision of amendment made in article 103 through said law, the difference incident to tax amount is cancelled; if collected, such amount will be dropped from the income tax of the taxpayers to be paid in next periods; if cannot be dropped, same will be rejected and refunded.

If same is less than the computed tax amount as per the same, tax officers of company will declare the occurrence through an additional statement to be issued as a whole through deducting from the first wage payment to be made following the publication date of this Law during the submission of the withholding tax return and within the payment period thereof (save those who are not obliged to submit such withholding tax return) and pay the same. Stamp duty for such statements will not be charged additionally. Default interest and tax penalty will not be levied on the difference corrected within cited period; if said less amount is not recovered during foregoing period it will create tax loss on this date. Principles and procedures for implementation of this provision are determined through the Ministry of Finance.” 

 

3. Implementation of Deduction Proceeding

3.1. Taxpayers to Submit Withholding Tax Return of July 2010 on August

The taxpayers who will submit the  withholding tax return of July on  August will make the required corrections on their computations as from       1/1/2010 in pursuance with the new tariff and same will be added to the list in Annex-1 indicating the difference between the withholding on the basis of all employers and the excess withholding and will submit such paid taxes  through deducting through expressing with the phrase “ Deductions made as per the Income Tax Law’s  Provisional Article No78” by writing same after line (20) (cutback amount to be deducted from  of  Tax cuts implemented  as per Corporation Tax Law 15/3 in accordance with Corporation Tax Law  Article 34/8) of “Deducted Taxes” section of the return’s Chart-1”Tax Base  and Tax Declaration ” chapter  as per corrected amounts in returns. If the paid tax cannot be deducted from the first withholding tax return, the remaining amount will naturally be deducted in the same way in following periods.

If the excess withholding amounts are not paid although they have been accrued,  a deduction will not be in question  and required correction on the relevant periods’ accruals will be realized through Tax Offices Annex-1 specifying the difference between the withholding on the basis of all employers and the excess withholding to be submitted as an annex of withholding tax return.

Example:


Monthly tax base amounts of  (A) Ltd. with monthly liability of  withholding tax return for 2 employers thereof is 40 000 TL; withholding amounts as per the tariffs applicable before and after the date of the legal arrangement by months are as follows:

 

 

 

 

 

 

 

 

 (TL)

 

January

February

March

April

May

June

July

Income Tax issued according to the provisions before the amendment

 

7.120

 

10.520

 

12.400

 

14.000

 

14.000

 

14.000

 

-

Income tax calculated according to the new provision

 

7.120

 

10.520

 

10.800

 

11.408

 

14.000

 

14.000

 

14.500

DIFFERENCE

   0

    0

 1.600

  2.592

    0

    0

      0

(A) Ltd. Şti. Shall deduct TL 4192 overpaid deductions from the employees related to March and April, declared to tax office and accrued from the tax to be paid on the withholding tax return to be declared in August and will pay (14.000 – 4.192=) TL 9.808 to the tax office. Therefore advance tax from the employees will sum up to TL 9.808.

3.2. Taxpayers Who Have Declared Withholding Tax Returm For July 2010 But Haven’t Paid The Accrued Tax Yet

In cases, where a taxpayer, who has declared withholding tax return but haven’t made any payments, declares a correction declaration before the deadline for declaring withholding tax returns; the list in annex-1 detailing amounts in declarations regarding January, February, March, April May and June, 2010 will be attached and will be processed as explained in section 3.1 of this communiqué.

3.3. Taxpayers Who Have Declared Withholding Tax Returm For July 2010 And Have Paid The Accrued Tax

The tax amount paid by the taxpayers who have declared withholding tax return and paid the accrued tax will be deduced from the income tax to be paid according to future withholding tax returns.

In future withholding tax returns, wage amounts for the employees will be declared and taxes calculated according to the new tariff will be accrued. The list in annex-1 stating advance tax total based on employees for each month, overpaid advance tax and the difference between these two will be attached to the withholding tax return and the amount to be deduced due to over-calculation will be shown after (Deduction amounts to be deduced from tax withholdings according to Corporate Tax Law 15/3 in line with corporate Tax Law 34/8) line (20) of section “Deduced taxes” in Table 1 “Amount and Tax declaration” of the withholding tax return with the statement “Deductions according to Income Tax Law provisional article 78”.

3.4. Taxpayers Submitting Withholding Tax Return Quarterly

Taxpayers submitting withholding tax return quarterly shall deduce overpaid tax amounts from the withholding tax return to be submitted in October within the frame of section 3.1 of this communiqué.

3.5. Procedures For Taxpayer Submitting Their Return In Electronic Environment

The taxpayer submitting their tax returns in electronic environment shall determine the overpaid amounts as per instructed in article 3.1 of this communiqué and shall indicate this in the line “Deductions according to Income Tax Law provisional article 78” in section “Deducted Taxes” opened solely for this purpose.

Additionally the list in annex of the communiqué (ANNEX – 1) stating advance tax total based on employees for each month, overpaid advance tax and the difference between these two will be attached to the electronic withholding tax return

4. Proceedings in Cases Where Advance Tax Amount is Lower Than The Tax Calculated According to The New Provision

In cases where advance tax are lower than the amount that should be calculated according to the new tariff from the wage payments between 1/1/2010 – 1/8/2010 the amount equaling to the difference shall be deduced from the first wage payment to be made following the publication the Law #6009 in Official Journal by those responsible for the tax and will be declared and paid by a separate withholding tax return within the submittal and payment period of the withholding tax return regarding the relevant payment (excluding those who are not obliged to submit withholding tax return). Such returns shall be submitted in electronic form, by those are obliged to submit electronic returns.

In these correction returns, present withholding tax returns will be used and no additional stamp fee shall be calculated for mentioned returns. No late fees or tax penalties shall be required for mentioned differences corrected in time however, in cases where under-accrued tax is not completed within this time loss of tax revenue shall occur.

There is no need for separate returns for differences occurring in several months, deduced taxes shall be declared and paid via a single return.

5. Return of Taxes Accrued overdue in cases of retirement, severance, closing of the workplace, death, etc.

Returning tax amounts collected overdue due to causes such as retirement, severance, closing of the workplace, death, etc. will be carried on by tax offices. Such taxpayers shall apply to tax office where its last employer is bound in terms of withholding tax returns with written notice of the deductions made from them in detail, obtained from the employer and relevant corrections are carried out by the relevant tax office.

Please be informed.

ANNEX 1- List

ANNEX-1

LIST TO BE ATTACHED IN ACCORDANCE WITH THE PROVISIONAL ARTICLE 78 OF THE INCOME TAX LAW

 

Months

Deductions made

Deductions to be Made

Difference

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Published in the official journal dated 1/8/2010 and numbered 27659