| Economy of Turkey |
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 Turkeyportal |
Taxation is an important part in the Turkish economy. Turkey has a 25.5% tax to GDP ratio (in 2016). [1] Most of the taxes are levied by central government. However some specific taxes are levied by municipalities, with the amount determined by centrally issued legislation. Municipalities have no authority to make their own tax laws.
Taxation system in Turkey is regulated by the Tax Procedure (TP) Law. It regulates the rights, burdens, carrying out duties along with principals of accrual. This law consist of procedural and official provisions of all tax laws. The TP has five main sections: taxation, taxpayer duties, valuation, penalty provisions and tax cases. [2]
The Turkish tax legislation can be divided into three main categories:
The Turkish tax legislation has two types of income taxes, the individual income tax and corporate income tax. Many rules and provisions are the same for individual income tax and corporations, especially in terms of income elements and the determination of net income. However the individual income tax and corporate income tax are regulated by different laws. [3]
The subject of individual income tax is the real people. The meaning of income is the net amount of revenues derived by a person within a year. According to Income Tax Law, incomes may be listed such as:
Variety of individual income tax rate is between 15% and 35%. [3]
Residency criterion is the key point for the taxes. Residents in Turkey are liable at tax on their worldwide income and they are considered as "full tax liable". Non-residents are only subject to taxes on their revenues gained in Turkey and they are considered as "limited tax liable". Residents are individuals with legal permanent residence and those who reside in Turkey for more than six months during one year. [4]
If the income elements listed in the Income Tax Law are derived by corporations, taxation is enforceable on the legal entities of these corporations. Corporate taxpayers has been described as:
If the legal headquarters or effective management of corporations are located in Turkey, they are subject to taxes derived from world-wide business. They are also called as resident companies.
Generally, the VAT rate varies from 1%, 8% to 18%. There is a huge range of subject subject to VAT such as industrial, commercial, agricultural, independent professional goods and services. [3]
People who has to pay VAT are described as:
The goods which are subject to SCT is on the list below. For these products, the Special Consumption Tax is collected only once. Generally 4 product groups are subject to SCT at different rates:
The transactions and services performed by banks and insurance companies are subject to this tax. This tax is paid by banks, bankers and insurance companies, regardless of the nature of the transaction, they are all subject to BITT. Taxes are levied on the money they collect as interest, commission and expenditure. Bankers' certain transactions and services as defined in the Law No. 6802 are subject to this tax. Bankers' other transactions are subject to VAT. [2]
There are many documents that are subject to stamp duty such as contracts, letter of credit, letter of guarantee, financial statements, payrolls. The stamp tax is collected at a rate of 0.89% to 0.948% as a percentage of the value of the document and is collected at a fixed price (a predetermined price) for some documents. [3]
The subject of this tax is Turkish citizens who have international assets. Foreigners who have a permanent residency are liable to inheritance and gift tax on assets located in Turkey and assets and income received from Turkish citizens. Foreigners who do not have permanent residency are liable to this tax on assets located in Turkey. There is a progressive tax rate that varies from 10% to 30% and 1% to 10% on the items received as gift or inherited. [2]
Property tax is levied on buildings and lands in Turkey. Per annum, property tax is calculated at rates ranging from 0.1% to 0.3% by the said municipality. Within the metropolitan cities, these rates have increased by 100%.
Owner of the building/land is the taxpayer and has any usufruct right on the building/land or if neither of these exists anyone that uses the building/land is regarded as its owner. [2]
The subjects of the tax are vehicles registered to traffic bureaus or offices such as land motors and also helicopters and airplanes registered to the Directorate General of Civil Aviation.
Taxpayers are civil and legal persons who own motor vehicles registered in their own names in the traffic register and civil aviation records kept by the Ministry of Transport, Maritime Affairs and Communications.
Every year, at the beginning of January, MVT is assessed and accrued. There are two equal installments in January and July each year.
There are three categories for motor vehicles that are taxable:
In the United Kingdom, taxation may involve payments to at least three different levels of government: central government, devolved governments and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England, Council Tax and increasingly from fees and charges such as those for on-street parking. In the fiscal year 2014–15, total government revenue was forecast to be £648 billion, or 37.7 per cent of GDP, with net taxes and National Insurance contributions standing at £606 billion.
Taxation in Ireland in 2017 came from Personal Income taxes, and Consumption taxes, being VAT and Excise and Customs duties. Corporation taxes represents most of the balance, but Ireland's Corporate Tax System (CT) is a central part of Ireland's economic model. Ireland summarises its taxation policy using the OECD's Hierarchy of Taxes pyramid, which emphasises high corporate tax rates as the most harmful types of taxes where economic growth is the objective. The balance of Ireland's taxes are Property taxes and Capital taxes.
In France, taxation is determined by the yearly budget vote by the French Parliament, which determines which kinds of taxes can be levied and which rates can be applied.
International taxation is the study or determination of tax on a person or business subject to the tax laws of different countries, or the international aspects of an individual country's tax laws as the case may be. Governments usually limit the scope of their income taxation in some manner territorially or provide for offsets to taxation relating to extraterritorial income. The manner of limitation generally takes the form of a territorial, residence-based, or exclusionary system. Some governments have attempted to mitigate the differing limitations of each of these three broad systems by enacting a hybrid system with characteristics of two or more.
The Russian Tax Code is the primary tax law for the Russian Federation. The Code was created, adopted and implemented in three stages.
Taxation represents the biggest source of revenues for the Peruvian government. For 2016, the projected amount of taxation revenues was S/.94.6 billion. There are four taxes that make up approximately 90 percent of the taxation revenues:
The Tanzania Revenue Authority (TRA) is the government agency of Tanzania, charged with the responsibility of managing the assessment, collection and accounting of all central government revenue in Tanzania.
Taxes provide the most important revenue source for the Government of the People's Republic of China. Tax is a key component of macro-economic policy, and greatly affects China's economic and social development. With the changes made since the 1994 tax reform, China has sought to set up a streamlined tax system geared to a socialist market economy.
Taxes in Switzerland are levied by the Swiss Confederation, the cantons and the municipalities.
Due to the absence of the tax code in Argentina, the tax regulation takes place in accordance with separate laws, which, in turn, are supplemented by provisions of normative acts adopted by the executive authorities. The powers of the executive authority include levying a tax on profits, property and added value throughout the national territory. In Argentina, the tax policy is implemented by the Federal Administration of Public Revenue, which is subordinate to the Ministry of Economy. The Federal Administration of Public Revenues (AFIP) is an independent service, which includes: the General Tax Administration, the General Customs Office and the General Directorate for Social Security. AFIP establishes the relevant legal norms for the calculation, payment and administration of taxes:
Taxation in Israel include income tax, capital gains tax, value-added tax and land appreciation tax. The primary law on income taxes in Israel is codified in the Income Tax Ordinance. There are also special tax incentives for new immigrants to encourage aliyah.
The tax legislation of Azerbaijan is comprised by the Constitution of Azerbaijan Republic, the Tax Code and legal standards which are adopted herewith. The taxes levied in Azerbaijan can be generally broken down into 3 main types: state taxes, taxes of autonomy republic and local (municipal) taxes. State taxes include the following: personal income tax, corporate tax, value added tax, excise tax, property tax, land tax, road tax, mineral royalty tax and simplified tax. Taxes of autonomy republic are the same as state taxes but levied in Nakhichevan Autonomous Republic.
Taxes in Germany are levied by the federal government, the states (Länder) as well as the municipalities (Städte/Gemeinden). Many direct and indirect taxes exist in Germany; income tax and VAT are the most significant.
Taxation may involve payments to a minimum of two different levels of government: central government through SARS or to local government. Prior to 2001 the South African tax system was "source-based", where in income is taxed in the country where it originates. Since January 2001, the tax system was changed to "residence-based" wherein taxpayers residing in South Africa are taxed on their income irrespective of its source. Non residents are only subject to domestic taxes.
Taxation in Estonia consists of state and local taxes. A relatively high proportion of government revenue comes from consumption taxes whilst revenue from capital taxes is one of the lowest in the European Union.
In Slovakia, taxes are levied by the state and local governments. Tax revenue stood at 18.732% of the country's gross domestic product in 2019. The tax-to-GDP ratio in the Slovakia increased by 0.4 percentage points from 34.3% in 2018 to 34.7% in 2019. The most important revenue sources for the state government are income tax, social security, value-added tax and corporate tax.
Taxes in Bulgaria are collected on both state and local levels. The most important taxes are collected on state level, these taxes include income tax, social security, corporate taxes and value added tax. On the local level, property taxes as well as various fees are collected. All income earned in Bulgaria is taxed on a flat rate of 10%. Employment income earned in Bulgaria is also subject to various social security insurance contributions. In total the employee pays 12.9% and the employer contributes what corresponds to 17.9%. Corporate income tax is also a flat 10%. Value-Added Tax applies at a flat rate of 20% on virtually all goods and services. A lower rate of 9% applies on only hotel services.
Czech Republic's current tax system was put into administration on 1 January 1993. Since then, an updated VAT act was introduced on 1 May 2004 when Czech Republic joined the EU and the act had to correspond to EU law. In 2008, the administration also introduced Energy Taxation. Changes to tax laws are quite frequent and common in the Czech Republic due to a dynamic economy. The highest levels of revenue are generated from income tax, social security contributions, value-added tax and corporate tax. In 2015, total revenue stood at CZK 670.216 billion which was 36.3% of GDP. The tax quota of the Czech Republic is lower than the EU average. Compared to the averages of the OECD countries, revenues generated from taxes on social security contributions, corporate income and gains and value added taxes account for higher proportions of total taxation revenue. Personal income tax lies on the other end of the spectrum where the revenue is proportionally much lower than the OECD average. Taxes on property also account for lower levels of revenue.
Taxation in Malta is levied by the State and it is administered by the Commissioner for Revenue. The total tax revenues in 2014 amounted to €2.747 Billion, which represents 34.6% of the Maltese GDP. The main sources of tax revenue were value-added tax, income tax, and social security contributions.
The organization responsible for tax policy in Ukraine is the State Fiscal Service, operating under the Ministry of Finance of Ukraine. Taxation is legally regulated by the Taxation Code of Ukraine. The calendar year serves as a fiscal year in Ukraine. The most important sources of tax revenue in Ukraine are unified social security contributions, value added tax, individual income tax. In 2017 taxes collected formed 23% of GDP at ₴969.654 billion.