Saturday, April 9, 2022
In accordance with the paragraph (1/e) of Article 5 of the KVK, the points to be considered within the framework of the application regarding the exemption of 50% of the real estate sales earnings of the corporate taxpayers and 75% of the sales earnings of the participation shares from the corporate tax are briefly as follows: :
Since the exception is applied to 50% of the real estate sales earnings and 75% of the sales earnings of the participation shares, there is no requirement to take the entire income into the fund account, only the part of the income benefiting from the exception must be taken into the said fund account.
· It is possible for taxpayers to benefit from the exception for a certain part of the income. If the exemption is partially utilized, it is not possible to benefit from the exemption in the following years for this unused income amount. It is natural that the part of the income that is foreseen to benefit from the exception will not be greater than the part of the income taken to the fund account.
· The process of being taken into the fund account must be made from the beginning of the accounting period following the year the sale is made, until the date of filing the corporate tax return for the period in which the income is declared.
· Since sales revenue will be generated with the sales transaction; The exception will be applied at the time of the sale. Interest, commission and similar incomes received for the receivables arising from the sale of the values within the scope of the exemption will not be taken into account in the determination of the exempted income. Likewise, it is not possible to take into account the exchange rate differences that arise when the sales price is determined in foreign currency, in the determination of the exempted income.
· In the sale of a building whose construction has not been completed yet, the income corresponding to the land is within the scope of the exception. However, in the buildings whose construction is completed, even if the land is acquired older than two years, the income exemption cannot be benefited unless two years have passed from the date of completion of the construction and starting to be used as a building.
Transactions such as transfer, assignment, barter of immovables without money are not included in the scope of exception. Since the transfer of land in return for flat is in the nature of barter, which represents the exchange of a property with another, it is not possible to apply the said exception to the earnings obtained from such transactions.
· For buildings whose type correction is delayed for any reason, the two-year period starts from the date of actual use of the building, not from the date of correction.
Allocated to the participants by OIZs, but; The sale of lands whose title deed registration is not on the participant is not within the scope of the exception.
For immovables acquired through financial leasing, the calculation of 2 years starts from the registration to the land registry.
· The first acquisition date is the 2 year account for transfers, divisions and mergers.
Institutions benefiting from the exemption in amounts above 483,000 TL (658,000 TL for the year 2022) due to the sales of real estate and participation shares in 2021 must also have a CPA report prepared. There is no need for a separate report for those who have a full certification agreement.
Disclaimer: The information in this article is provided for general information purposes only. It is not intended for a professional informational purpose specific to a person or institution. Although it is similar to the subject, each business may have different situations due to its own special conditions. For this reason, it is in your best interest to consult an expert before taking any decision that will affect your business based on the information provided in this article. Karen Audit or any of the persons or institutions it is associated with is not responsible for any loss or damage that may arise as a result of the use of the information contained in this document by private or official, real or legal persons, institutions and organizations.
