A notice has been published regarding the procedures and principles of the income discount.
With the Code no: 6663 Art.2 that was published in the 10.02.2016 dated official gazette a new paragraph was added to the “other discounts titled Art.89 of the Revenue Law.
According to this paragraph that became effective on the incomes from the date of 01.01.2016, the part of the business incomes that reaches up to yearly 8.000 TL can be deducted from the notified incomes in the income tax return.
With the 292 numbered Income Tax General Notice published in the 05.05.2016 dated official gazette aforesaid discount application’s procedures and principles are as follows.
With no time limitation, 8000 TL discount will be made to the notified business incomes of the taxpayers who have business income located in simple entry. This discount is applied to the incomes obtained from the date of 01.01.2016. Hence, the discount regarding the incomes belonging to the year of 2016 will be considered in the return that will be submitted in the year of 2017.
Aforesaid discount will be applied to only the business incomes of the taxpayers who are subject to simple entry, and will not be applied if other income components are available. Also, the discount that was unavailable due to the fact that no profit was made or profit was under 8.000 TL, cannot be transferred to the following years.
Taxpayers who have business income located in simple entry cannot benefit from the 8.000 TL discount with the young entrepreneurs income exception.
If the taxpayers, who have business income located in simple entry, fulfill the conditions for both of these situations they shall decide the one they will benefit from.
In the case of taxpayers who are subject to simple entry transfer to the original procedure for any reason in the calendar year, they cannot benefit from the discount. Also if these taxpayers fulfill the other conditions for the young entrepreneurs exception they cannot benefit from this either, due to the breach of founding the tax-paying obligation for the first time condition.
The amount of discount is shown in the related line of the yearly income tax returns (For the ones who only have business income located in simple entry to declare) “declaration of income” chapter. On the other hand, if there are other income components beside the business income located in the simple procedure, it is shown under the “Notice on Simple Entry Business Incomes “Yearly income tax return appendix”
You can find the 292 numbered Income Tax General Notice published in the 05.05.2016 dated official gazette here: