Fuel consumption tax is within the scope of the special sales taxes category and is taken into consideration during the determination of the sales price of the fuel products by the refinery companies and the firms that import petroleum.
The sales of normal and super gasoline, fuel oil, LPG, kerosene are subject to this tax. The refinery companies and the firms which import these products are the taxpayers but, since the tax is totally passed on to the consumers through its inclusion in the selling price, the final consumer is the real taxpayer and the refinery firms simply have a tax responsibility.
Banking And Insurance Transactions Tax
Income received by banks such as commissions, interest and the like and premiums collected by insurance companies are subject to a 5% banking and insurance transaction tax. This tax is usually borne by customers.
A declaration has to be filed and the tax is paid by the 15th of the month that follows the declaration. The tax rate on interbank deposit transactions is 1%; it is 0.1% on income derived from the sale of foreign currency.
Real Estate Tax
Property and wealth taxes may be imposed on prices of property (payable by the owner) and thus be impersonal; or they may be imposed on the combined property holdings of a person, or his net worth thus being in the nature of a personal type of tax.
The real estate tax levied on immovable property is a special form of wealth tax. An annual real estate tax on estimated market value applies to land (0.6%) and buildings (0.4-0.5%).
The tax base reported for real estate tax purposes cannot be less than the one determined by the government authorities. The tax is paid in two equal instalments in May and November to the municipal tax offices.
Real estate tax returns must be filed every four years.
Inheritance Tax
Gratuitous transfers by inheritance or by donations constitute the subject of this tax. Tax rate differs between 4-30% depending on the amount and degree of relationship. The tax is paid over five years, twice a year in the months of May and November, in equal instalments.
Stamp Tax
This tax is applied to a wide range of legal documents such as contracts, agreements, notes payable, capital contributions, letters of guarantee, financial statements, and tax returns. The tax base differs depending on the nature of the document. Stamp duty can be either fixed or proportional. In other words, there is either a fixed amount of tax to be paid or else the amount is computed as a percentage of the value of the transaction evidenced by the document.
Municipal Taxes
Other than real estate tax, municipalities can assess different taxes and duties such as advertisement tax, business registration fees, etc.
Motor Vehicle Tax
Motor vehicle owners pay this tax twice a year. The amount to be paid as motor vehicle tax varies according to the type, features, and age of the vehicle.
Vehicle Purchase Tax
This tax is payable on the purchase of an automobile. Like motor vehicle tax, the amount of tax to be imposed varies depending on the type, features, and age of the vehicle.
Double-Taxation Treaties
Turkey has signed tax treaties with the following countries, in order to avoid double taxation on income that has already been taxed in one jurisdiction.
Austria Netherlands Norway Finland Italy Belgium Korea Northern Cyprus Jordan France Germany Saudi Arabia Tunisia Sweden Rumania Pakistan Great Britain and Northern Ireland Denmark Hungary Japan Algeria Russia
Most of these tax treaties conform to OECD model treaties.
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 mustafa.camlica@arthurandersen.com or enter a text search 'Arthur Andersen' and 'Business Monitor'.
