Class-I Merchants

-Tax Procedure Law, Article 177

Merchants written above belongs to Class 1

1. Those who sell the commodities they have purchased with our without processing and those exceeding 170.000-TL amount at sales or 120.000-TL amount for purchases yearly.

2. Those dealing with businesses other than explained at the first clause and earning a gross revenue exceeding 68.000-TL

3. Those exceeding a revenue amount of five times more than stated at the 2nd clause and 120.000-TL as yearly sales amount by conducting businesses explained at 1st and 2nd clause jointly.

4. All types of business companies (unincorporated companies are subject to related clauses decree as per the business activity descriptions are fitting)

5. Other legal persons subject to Corporate Tax (It is only decided by Ministry of Finance whether to allow book keeping with operating account method for the one’s without the necessity of keeping their books (or can not) with balance sheet method as per the works performed)

6. Those keeping their books as per balance sheet basis voluntarily

Class-II Merchants

-Tax Procedure Law, Article 178

Merchants written above belongs to Class 2:

1. Those not included at the list at Article 177
2. Those having Corporate Tax liability and allowed by Ministry of Finance to keep their books as per operating account basis

Merchants started business newly shall act as Class 2 until they were classified as per their yearly volume of work.