What is Tax Law?

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The branch of law that determines tax obligations and tax relations between citizens and the state is called tax law. The state can collect taxes with the laws it has enacted based on tax law.

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The general characteristics of the taxes collected by the state can be listed as follows;

 

• Forms the sovereign powers of states

• Taxes are collected free of charge

• The state meets the public expenditures thanks to the taxes it collects.

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Within the scope of tax law, there are different issues such as the emergence or disappearance of tax liabilities and the types of taxes to be paid.

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What are the Subjects of Tax Law?

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In terms of subject, tax law has a wide spectrum.

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The main topics of tax law can be listed as follows;

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• Application forms of tax laws

• tax obligations

• Transactions related to taxation

• Accrual and collection methods of taxes

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The state meets the needs of its citizens with the taxes it collects from its citizens. For this reason, tax transactions between citizens and the state emerge as a compulsory relationship.

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What are the Sources of Tax Law?

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There are two main sources of tax law, primary (binding) and secondary (non-binding).

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The main binding sources of tax law can be listed as follows;

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• Constitution and laws

• International tax treaties ratified by the TGNA

• Presidential decrees

• Bylaws and regulations

• Decisions of the Constitutional Court on taxation

• Binding communiqués of the ministry of treasury and finance

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Non-binding and secondary sources of tax law can be listed as follows;

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• Decisions made by the judiciary

• General statements of explanatory nature

• Circulars, circulars and circulars

• Scientific views and customs

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Sources of tax law in general; legislature, executive, judiciary and other sources.

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Who is Obligated to Pay Taxes?

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Those whose residences are within the borders of the country and those who have permanently resided in Turkey for six months within a one-year period are called full taxpayers. Public and private persons who have the aforementioned conditions and have legal income are required to pay taxes.

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What Happens If Tax Payment Is Not Made?

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In tax law, natural and legal persons specified as taxpayers are required to pay taxes in accordance with the laws. Taxpayers are obliged to pay the amounts accrued to them within the specified periods. If taxpayers do not pay the required amount within the specified time, they are warned by the tax office in an official letter. Despite the written notification, if the payment is not made within the given period, the tax amount in question is collected together with the legal interest. Although there is no prison sentence due to tax debt, the tax is collected through enforcement.

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What are the Tax Applications within the Scope of Tax Management?

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The process, starting with the imposition of the tax and ending with the collection of the tax, is called tax management.

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The taxes applied in this context can be listed as follows;

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• Income tax: Real persons are subject to income tax on their annual income. The type of taxation made on the earnings of these people in a calendar year is called income tax. Income tax; real estate capital income, commercial and agricultural income, self-employment income, securities capital income and wages and other income.

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• Corporate tax: The taxes that corporations and organizations are subject to are called corporate taxes. The scope of these taxes; Gains obtained from cooperatives, public institutions, capital companies, economic enterprises belonging to associations or foundations and business partnerships are included.

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• Value Added Tax (VAT): VAT, which is the most common tax application in our country, is a type of tax collected in return for expenditures. VAT tax is a tax levied in the process from production to consumption of products. Value added tax is levied on all products produced in our country.

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• Special consumption tax (SCT): The tax levied on goods designated as special consumption in the law is called special consumption tax.

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• Motor vehicle tax (MTV): The motor vehicle tax, which is collected in two installments in January and July, is collected from the owners of the vehicles registered to the traffic.

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• Stamp duty: It is the tax application that the state collects in return for all kinds of legal written agreements and contracts.

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• Property tax: It is a type of tax collected over the value of all kinds of immovables such as buildings and land located within the official borders of the Republic of Turkey.

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In addition to these tax practices, there are more than 200 different tax types in the lists published by the revenue administration. These tax applications can be increased or decreased by law as needed.

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What are Tax Obligations and Tax Responsibilities?

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All real and legal persons with income and earnings in Turkey are considered taxpayers. There are different types of tax liabilities.

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Some of them can be listed as follows;

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• Income taxpayer: Citizens of countries residing in foreign countries where the headquarters of their enterprises are within the borders of Turkey, together with those residing in Turkey

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• Corporate taxpayer: Usually consists of companies and organizations

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• Value added taxpayer: Such as those who deliver goods, sell or lease services and import

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• Special consumption taxpayer: Those who buy and sell products and services on the lists specified in the law.

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• Bank and insurance transactions taxpayer: such as bank and insurance companies

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Besides these; There are also obligations such as inheritance and gift tax payer, property tax payer, motor vehicle tax payer and stamp tax payer.

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Tax responsibilities are also specified in the law. Responsibilities in this context; notifications, bookkeeping, document supply and cancellation, document arrangement, preservation and submission, and other duties.

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In notifications; There are topics such as starting a job, ending a job and leaving the job. Real and private persons who are obliged to keep books are also specified in detail in the law.

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What are the types of liability?

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In the law, tax liability types are evaluated under two headings as full liability and limited liability. Those residing in Turkey and those deemed to have settled due to the conditions specified in the law, as well as citizens of countries residing in foreign countries with the headquarters of their enterprises in Turkey are considered full taxpayers. Income obtained by people who are not settled in Turkey from the trade they carry out within the country are included in the scope of limited liability.

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Who are the Corporate Tax Payers?

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Corporate taxpayers, who are among the taxpayer types specified in tax law; It consists of capital companies, cooperatives, economic public institutions, economic enterprises belonging to associations or foundations and business partnerships.

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What are Tax Litigation and Dispute Resolutions? 

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Disputes on taxation usually take place over the type and base of taxes. Such disputes can be resolved spontaneously without any application by the relevant tax office, or they can be corrected as a result of the applications of the relevant persons. Due to the failure to make these adjustments, tax lawsuits are filed by going to court. Tax courts are tasked with dealing with tax disputes.

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Tax lawsuits are generally filed on the following issues;

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• Imposing an unusual tax

• Notification of the tax penalty to the taxpayer

• If agreement is not reached

• Excess tax levy