What is Income Tax?

Income tax is a type of tax collected on the earnings and revenues of non-institutional persons who can legally obtain rights and exercise authority within a calendar year. Income subject to income tax; There may be commercial earnings, agricultural earnings, self-employment earnings, as well as income from movable and real estate capital-generating properties.

Who Pays Income Tax?

Persons liable to pay income tax;

• Who have a residence in Turkey,

• Continuously living in Turkey for six months or more,

• They are Turkish citizens who are affiliated to official departments and establishments or to organizations and enterprises headquartered in Turkey and reside in foreign countries due to the affairs of the aforementioned departments, institutions, organizations and enterprises.

Persons who meet the above definition will be obliged to pay tax on all income and property they acquire in and outside of Turkey. Persons who do not live or have a residence in Turkey are considered as limited taxpayers and are only liable to pay tax on their earnings and property they have acquired in Turkey.

What is Income Tax Return?

The income tax return is the document that shows the income of the person and must be prepared and submitted to the tax office every year until the evening of the 25th day of March. If the income consists of commercial earnings determined by simple method, this date is between the beginning of February and the 25th day.

When Is Income Tax Paid?

Income tax is paid in two installments. It can be paid in two different ways:

• If the income does not consist of commercial earnings determined only by simple method, the first installment is paid until the end of March and the second installment until the end of July.

• If the income consists of commercial earnings determined only by simple method, the first installment is paid until the end of February, the second installment is paid until the end of June.

How is income tax calculated?

Income tax tariffs are renewed every year. You can calculate according to your tax bracket determined according to your income amount. For example, if you have an annual income of less than 22,000 TL, the income tax to accrue is 15%.

What are the 2021 Income Tax Rates?

The income tax rates determined for 2021 are as follows:

Where to Pay Income Tax?

As a requirement of the technology age, tax payments can be made through digital channels of banks. If you do not have an online banking account, you can also pay personally to the tax office in the district where you live or work.

Calculating and returning income tax can be a tiring task in itself. Especially the preparation of the declaration made without any automation support is very difficult for those who deal with this business. For this reason, we strongly recommend that you get support from automation software that takes advantage of the technological power of our age. Oditta, Turkey's first and only certified public accountant software, is an automation software that is the leader of its class.

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