legal structure of turkish tax system

01.03.2012 Department of EU and Foreign AffairsBirol UBAY

Revenue Expert

LEGAL STRUCTURE OF TURKISH TAX SYSTEM

Birol UBAY05.03.2012

ANKARA

[email protected]


Revenue Expert


– INSTITUTIONAL STRUCTURE – TAXATION


Revenue Expert


• INSTITUTIONAL STRUCTURE


Revenue Expert

INSTITUTIONAL STRUCTURE

• Ouick View of Revenue Administration

• Main Features

• Core Values


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Ouick View of Revenue Administration

• The first fiscal organization in The first fiscal organization in Ottoman Empire was Ottoman Empire was established in the time of established in the time of Murat the first.(1359-1389)Murat the first.(1359-1389)

• Until 1838 there was no Until 1838 there was no ministry of finance precisely in ministry of finance precisely in Ottoman Empire. Till to that Ottoman Empire. Till to that time, the head of the time, the head of the organization dealing with the organization dealing with the financial matters was barely a financial matters was barely a civil servant named as civil servant named as “district treasurer”“district treasurer”


Revenue Expert

Ouick View of Revenue Administration

• The General Directorate of Revenues was established with the Law in 1946.

• The General Directorate of Revenues transformed to the Presidency of Revenue Administration in May 2005


Revenue Expert

Main Features

• Semi-autonomus legal status

• Taxpayer-oriented organisation

• Efficient and effective cooperation with related national institutions and international counterparts

• Basic strategic task: Voluntary Compliance

• Efficient taxpayer services policy

• Hierarchic unity among the central and local units

• Appropriate distribution of responsibilities and authorities

• Clear definition of roles and responsibilities of the managers


Revenue Expert

CORE VALUES

Participation

Continuous Development

Competency

Effectiveness

Transparency

Awareness of Responsibility

Solution-oriented

Impartiality

Reliability

Fairness

Our Principles


Revenue Expert

MINISTER

DEPUTY UNDERSECRETARIES

DG Liquidation Proceedings& Rev. Funds

Dep. of EU and Foreign Affairs

Chief Legal Advisors and D.G. of Proceedings

DG Budget and Fiscal Control

DG Public Accounts

DG Revenue Policies

DG National Properties

Training Centers

Secretariat of Civil Defense

Strategie Development Department

DG Personnel

Fiscal Training Center

Dep. of Admin. and Financial Affairs

Dep. of Data Processing

Consultancy of Press and Pub. Rel.

Financial Crimes Investigation Board

Tax Council

PRESIDENCY OF REVENUE ADMINISTRATION

(TURKISH REVENUE ADMINISTRATION)

Tax Audit Board

UNDERSECRETARY

MINISTRY OF FINANCE Instutional Structure- Central


Revenue Expert

TURKISH REVENUE ADMINISTRATION Instutional Structure- Central


Revenue Expert

Kahramanmaraş

Sakarya

ZonguldakEdirne

TURKISH REVENUE ADMINISTRATIONLocation of Tax Office Directorates ( in 29 Provinces)


Revenue Expert

TURKISH REVENUE ADMINISTRATION Instutional Structure- Tax Office Directorates

TAX OFFICE DIRECTORATE

Taxpayer Service Income Group

Directorate

Taxpayer Service Procedural Group

Directorate

Audit Group Directorate

Human Resource Group Directorate

Strategy Directorate

Support Service Group Directorate

Personal İncome And

Corporate İncome Tax Directorate

VAT, Excise Duty Other Taxex and

Carriying Agreement Directorate

Taxpayers Rights And

Communication Directorate

Procedural and Collection Directorate

Local Tax OfficesCommissions and Branches

Audit and Coordination Directorate

Human Resource Directore

Training Directore

Administrative and Financial Affairs

Directore


Revenue Expert

TURKISH REVENUE ADMINISTRATION Instutional Structure- Local Tax Office

Local Tax Office Directorate

Taxation Department

Accounting Department

Proceeding Department

Registration andInspection

Service

Continued ObligationsTaxation Service

-Tax return receive desk- Assessment desk-Other imposition desk- Account and tracking desk- other processes desk

Discontinuous Obligations

Taxation Service

-Motor Vehicle Tax Desk-Vehicle Purchase Tax Desk-Land Registry and Cadastre Fees Desk-Inheritance and Gift Tax Desk-Other Discontinuous Obligations Desk

Disputed Cases Service

Other Processes Service

-Pay desk-Accounting registration service

-Enforcement service- Sales service

Surveliance and Control Department

Correspondence, Archive,

Personnel Service


Revenue Expert

TURKISH REVENUE ADMINISTRATION Large Taxpayer Unit

– LTU was established in 2006 in İstanbul

– Directly connected to the Revenue Administration

– To avoid tax loss and evasion, following and auditing large taxpayers more closely

– For each large taxpayer, a tax expert is appointed to execute all his/her transactions and to serve him/her


Revenue Expert

TURKISH TAX SYSTEM

– REVENUE ADMINISTRATION STATISTICAL DATA

– TAXATION


Revenue Expert

TURKISH TAX SYSTEMStatistical Data

• Distrubution of Taxpayers according to tax type

Tax Type Number of Taxpayers (2011)

Personal Income Tax

1.703.754

Corporate Income Tax

663.967

VAT 2.293.765

Immovable Property Tax

1.041.427

Single Entry Taxation

714.693

Witholding Tax 2.386.309


Revenue Expert

TURKISH TAX SYSTEMStatistical Data

• Taxation Revenues Data

2011

Tax revenue collection in general budget

%84,1


Revenue Expert

TURKISH TAX SYSTEMTaxation


Revenue Expert


• Personal Income Tax• The net amount of profits and

earnings obtained by natural persons in one calendar year are the subjects of the personal income tax.


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• An individual’s income may consist of one or more income elements

• Business profits

• Agricultural profits

• Salaries and wages

• Income from independent personal services

• Income from immovable property and rights (rental income)

• Income from movable property (income from capital investment)

• Other income and earnings without considering the source of income


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• Corporate Income Tax

• The income and earning derived by corporations and corporate bodies are the subject of corporate tax

• The income elements for corporate tax are the same as those covered in the PITL

• CIT is applied at 20 % rate on the corporate earnings


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• The following entities are the taxpayers of the CIT

• Capital companies

• Cooperative companies

• State Economic Enterprises (public corporations)

• Economic entities owned by foundations and associations

• Joint Ventures


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• Value Added Tax

• The Turkish tax system levies value added tax on the supply and the importation of goods and services

• Applied to all stages from producer to consumer


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• The following transactions carried out in Turkey are subject to VAT

• Supply of goods and services within the scope of commercial, industrial, agricultural or independent professional activities

• Importation of all kinds of goods and services

• Other activities


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• Excise Duty (Special Consumption Tax)

• Delivery

• First acquisition

• Importation

• Selling through auction


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• Delivery,first acquisition, importation and selling through auction of some goods are laid down list numbered

I. Petroleum products, natural gas, lubricating oil, solvents and derivatives of solvents

II. Automobiles and other vehicles, motorcycles, planes, helicopters, yachts

III. Tobacco and tobacco products, alcoholic beverages, cola

IV. Luxury products


Revenue Expert


- BANKING AND INSURANCE TRANSACTION TAX

- SPECIAL COMMUNICATON TAX

- STAMP TAX

- CUSTOMS DUTY

- All transactions of banks and insurance companies and bankers are the subject of the tax.

- Services of cell phone, cable radio and television broadcasts and telecommunication are generally the subject of the tax.

- Preparation of the documents related to acts, conclusions, official reports, papers related to commercial transactions and receipts is the subject to the stamp tax.

- Goods imported from abroad are the subject of the tax.


Revenue Expert


- INHERITANCE AND GIFT TAX

- REAL ESTATE TAXA. Building Tax

B. Land Tax

- MOTOR VEHICLE TAX

- Items acquired as gifts or through inheritance are subject to taxes between 1% and 30% of the item's appraised value

a. The ownership of the building and setting up usufruct or acting as owner of the building is the subject of the real estate tax

b. The ownership of the land and setting up usufruct or acting as owner of the land is the subject of the land tax

- Registration of the motor vehicles in the traffic, municipality and docks is the subject of the motor vehicle tax


Revenue Expert


legal structure of turkish tax system

Documents

tax loss

tax expert

revenue administrationto

large taxpayers

fiscal organization

ottoman empire

civil servant

financial matters