The taxation of capital gains, (included in "miscellaneous profits and earnings") varies according to the asset giving rise to the capital gain. The taxation of gains on the disposal of securities such as stocks and bonds is a particular case. Gains from the disposal of securities that have been acquired free of charge or are quoted on the stock exchange and have been held in possession for at least one year are exempted from taxation. (This rule is due to expire at the end of 1999.)
Gains from the disposal of immovable properties are also exempt if the property in question has been held for a minimum of four years. In other words, in sales transactions that are realized in the four years subsequent to the date of acquisition, no taxes are payable. Sales of other fixed assets acquired prior to 1 January 1993 are tax-exempt if the asset has been held for one year. In order to provide some protection against the effects of inflation on the taxation of capital gains on immovable property, there is a provision that involves the indexation of the cost and the application of tax to the difference between the selling price and the indexed value of the property.
The income tax tariff is as follows :
Annual taxable income
TL in millions % rate
0 - 150 25
151 - 310 30
311 - 620 35
621 - 1,240 40
1,241 - 2,490 45
2,491 - 4,980 50
4,981 - up 55
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Mustafa Camlica, Tax Manager on Tel: +90 212 232 1210, Fax: +90 212 230 8231, or e-mail email@example.com or enter a text search 'Arthur Andersen' and 'Business Monitor'.
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The New Turkish Commercial Code ("New Code") has been enacted and will enter into force in July 2012. One of the major changes brought by the New Code regards mandatory independent audits of corporations.
The law about payment of dividends has remained substantially unchanged for thirty years.
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