Comparing Taxation Between Turkey and the World

16 January 2019 0 Comment(s)

The total tax incidence of Turkish companies which they are supposed to pay is 40,2 %, which is under world average 43,1 %.  Turkey, thanks to the tax reforms implemented in 2003 found 53 % of the level of the tax rate dropped to 40.2 % by pulling down nearly 13 points.

According to reports given place to important findings about Turkey, the medium-scale companies in Turkey are obliged to pay a 40.2 % of their profit as taxation in order to accord tax requirements. While the companies in Turkey are spending 226 hours for paying 11 different taxes, the companies in the world are spending 268 hours for paying 26,7 different taxes in a year.

The period is reduced for tax payments

The report that refers taxation system is digitalized in Turkey, indicates the period for tax payments is reduced. The report states that electronic invoicing will facilitate internal and external auditing by increasing transparency and the following statements are made:

“Because of reaching e-invoices from electorinic platforms easily, the companies will have real – time information about cash methods. Companies implementing the electronic billing system will be able to keep their relevant legal records electronically and in a certain way. The revolutionary application will save companies from printing pages legally, including large ledgers and inventory books that should be legally kept for ten years.”

The Slightest Tax Incidence : Croatia

With regards to tax incidence on company profits, Turkey takes place in countries which has the slightest tax incidence with 40,2 %.

  • The tax rate of companies which they in Italy is 65.8 %,
  • 64,7 % in France,
  • 58,6 % in Spain,
  • 52 % in Sweden
  • 49,4 in Germany.

The country, which has the lightest tax incidence on company profits in Europe, is the new EU member with Croatia at 19.8 %, followed by Luxembourg with 20.7 %.

In the USA which is the biggest economy of the world, the companies pay 46,3 % of their profit as taxes. In the country, 175 hours per year are spent for 11 different tax payments. In Canada on the same continent, the total tax rate paid by companies is 24.3 %. Canada is spending 131 hours a year for 8 different tax payments.

The tax incidence on company profits is 49.7 %in Asia, and 63.7 % in China. Companies in Japan spend 330 hours per year for 14 different tax payments, while 318 hours are spent for 7 different payments in China.


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