What is Concise Statement? How Is It Calculated?

What is Concise Statement?

The withholding statement, whose name is known by almost every taxpayer but whose content is not fully understood, is explained as follows according to the 84th article of the Income Tax Law; Withholding Declaration, employers or other tax deductible persons, with the tax deducted tax assessment is the declaration to the office. Since withholding taxation is in question in the Withholding Declaration, the tax is requested from the tax officer instead of the main debtor.

The person or institution held responsible for the tax debt of someone else is called the tax officer and can be paid by declaring the withholding tax return calculated with the withholding method. As we mentioned in the article we wrote about withholding before, deduction is made at the source with taxation in the form of withholding tax in the withholding tax return. In other words, the income is interrupted before it is in the hands of the owner.

Who Are Those Who Will Make a Concise Statement?

1. Business Partnerships

2. Associations

3. Foundations

4. Persons managing the mutual fund

5. Public administration and institutions

6. Economic public institutions

7. Trading companies

8.Trade and self-employed persons (persons who have to declare their real income)

9. Farmers whose earnings are subject to agriculture and balance sheet

When Are Concise Return Periods?

The withholding statement is paid monthly or quarterly. Institutions wishing to pay quarterly should notify the tax office in writing. In the regulation made with Article 98 of the Income Tax Law, the following statements are included: Except for those who make tax deductions from agricultural product prices, those who employ 10 or less service personnel, make the withholding declarations related to the tax deduction they will make according to the 94th article and the tax they are bound to. instead of each month until the evening of the twenty-third day of January, April, July and October, provided that they notify the office in advance.

Quarters;

1. January, February, March, 23 April

2. For the period of April, May, June, 23 July

3.July, August, 23 October for the period of September

4.October November, 23 January for December period

Although the information here is valid at the moment, the Revenue Administration has the right to make changes on these dates. Therefore, we recommend that you verify on the IOP website.

Withholding Declaration Codes

Withholding Declaration code - Payment Type - Tax Rate

011 - Minimum Wage - 15%

012 - Other Paid - 15 - 35%

031 - Construction Works Over Years - 3%

032 - Construction Works over the years (from the progress payments made to the institutions) - 3%

041 - Rent Payments etc. Payments made under article 70 of the GVK - 20%

042 - Payments Made Against Lease of Immovables Belonging to Cooperatives - 20%

093 - Payments for Other Agricultural Crops Purchased by Registration at the Commodity Exchanges - 3%

Withholding Statement Calculation Example

A company called X has 15 employees. The company pays a monthly rental fee of 22.000 TL for the head office. Among the employees, 5 people receive the minimum wage. What are the types of tax to be declared in the withholding tax return based on this information?

Since company X has more than 10 employees, it has to file a withholding statement on a monthly basis. According to the information given in the question, the income tax to be calculated on the wage income must be declared with the code 011 for 5 persons receiving minimum wage and the remaining 10 persons with the code 012. Stamp tax calculated over salary payments should be included in the withholding statement with the code 302, even though the amount of the wages paid is different.

While calculating, the rental amount should be calculated gross and should be included in the declaration with the code 041. Accordingly, the calculation should be as follows:

Gross Account: Net Rent Amount / 0.80 (22.000 / 0.80 = 27.500)

Withholding Amount: 27.500 x 0.20 = 5.500 TL

Since withholding tax will be calculated as 10% until May 31, 2021 due to the support-oriented arrangements made during the pandemic period, the calculation should be as follows:

Gross account: Net Rent Amount / 0,90 (22,000 / 0,90 = 24,444)

Withholding Amount: 24.444 x 0.10 = 2.444,10 TL