Commercial Earnings
		Determination Procedures of Income
Actual Method					Simple Method
Balance Sheet Basis
-All business corporations -Legal persons subject to Corporate Tax -Those would like to be taxed under balance sheet basis by their own discretion. -Those who sell goods which they have purchased as is or after having processed them, and the value of whose purchases exceeds 120.000-TL (as of 01.01.2010)  or the value of whose sales exceeds 170.000-TL (as of 01.01.2010) -Subparagraph 1 -Those engaged in business other than those specified above and whose gross business proceeds acquired in one year exceed 68.000-TL (as of 01.01.2010) -Subparagraph 2 -In the case that the business indicated in above are conducted jointly, those for whom the total of five times the business proceeds specified in Subparagraph 2 plus their yearly sales proceeds exceeds 120.000-TL (as of 01.01.2010)					-Being actually employed in own business or be present. -In the event that the ownership of the work place belongs to the owner of the business, the arm's length of the rental fee and in the event of the place of business being rented, the total annual rent fee not being higher than 4300-TL for areas within municipal borders, and not exceeding 3000-TL in other locations. -Not to become subject to Income Tax on actual method on account of commercial,agricultural or professional activites SPECIAL CONDITIONS TO FULFILL: -Tradesmen who sell the merchandise that they have purchased as they are, or processed goods, the annual purchase totals should not exceed 60000TL or the annual sales totals should not exceed 89000TL -The gross commercial earning acquired by tradesmen other than those mentioned in forementioned clause within 1 year should not exceed 30000TL -The aggregate of the annual sales total and the commercial proceeds total, should not exceed 60000TL if the works mentioned in clause 1 and 2 are performed together. SOME FACILITIES OF SIMPLE METHOD: -No bookkeeping -No withholding and withholding return. -No temporary tax payment -Delivery and Services of Tax payers subject to simple method are exempted from Value Added Tax -Economical values subject to depreciation will not considered when calculating commercial earning
Operating Account Basis
-Those not included under “Balance Sheet Basis” -Those with a Corporate Tax Liability to whom permission is granted by the Ministry of Finance to maintain books on operating account basis -Merchants who are newly commencing work until they can be sorted on the basis of their annual business volumes. i.e. Grocery, butcher, barber, tailor etc.
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