Legal accounting services are a vital service provided by AskinTurkey company to assist in monitoring and managing the financial and tax aspects of companies and businesses. This type of service aims to ensure companies’ compliance with accounting and tax laws in Turkey. Legal accounting plays a crucial role in providing accurate and transparent financial information to companies and facilitating strategic financial decision-making. We offer the following services:

Monthly company monitoring:

Legal accounting service includes monthly monitoring of the company to ensure financial and tax compliance. We analyze the company’s accounts and financial transactions, review them for accuracy, and ensure their alignment with the approved accounting principles. Detailed monthly reports are prepared to illustrate income, expenses, capital changes, cash flow, and budget.

Preparation and submission of tax declarations:

We prepare and submit the necessary tax data for companies and businesses. This includes collecting and organizing the required tax information, preparing tax declarations, and submitting them according to the deadlines set by the tax authorities in Turkey.

Tax payment monitoring:

Legal accountants from AskinTurkey monitor and track the timely payment of taxes owed by the company or business. We ensure that taxes are paid on time and in the correct amounts, thereby avoiding potential legal issues and financial penalties.

Sales and expense tracking:

Sales and expense tracking involves recording and monitoring the company’s revenues and expenses on a regular and monthly basis. This data is analyzed to provide clear and detailed financial reports that assist in making sound financial decisions and achieving the company’s goals.

Preparation and declaration of annual budgets:

We assist the company or business in preparing annual budgets and ensure their compliance with accounting and tax standards. Typically, annual budget declarations are submitted to the Turkish tax authority and other regulatory bodies within a specified timeframe after the end of the fiscal year. The financial declaration includes several key financial statements and documents, including:

1. General balance sheet: This list illustrates the assets, liabilities, and equity of the company at the end of the fiscal year. It includes fixed and current assets, liabilities, capital, and realized profits or losses.
2. Income statement: It shows the revenues and expenses incurred during the fiscal year. This includes sales, commissions, interest, general expenses, production costs, salaries, wages, taxes, and reserves.
3. Cash flow statement: It demonstrates changes in cash and bank balances during the fiscal year. This includes cash received, cash paid to suppliers and customers, cash flow from operational and investment activities, and company financing.

Companies and businesses must comply with accounting and tax laws and regulations in Turkey when preparing and submitting annual budget declarations.

It is important for the information mentioned in the annual budget declaration to be accurate, reliable, and supported by appropriate financial documents. This information may be used for various purposes, including:

1. Tax compliance: The tax system in Turkey relies on financial declarations to determine the amounts to be paid as taxes by companies and businesses. If financial declarations do not comply with accounting and tax standards, individuals or companies may face legal consequences and fines.
2. Financial assessment: Financial declarations are essential for assessing the financial performance of a company or business. They reflect the ability to generate profits and highlight financial issues related to cash flow, debts, and investments.
3. Transparency and disclosure: Financial declarations contribute to increasing transparency and trust between companies, investors, and external entities. They provide accurate information about the financial and operational performance of the company, helping in making sound investment decisions and risk evaluation.

Overall, annual budget declaration in Turkey is an important process for companies and businesses as it contributes to establishing a legal accounting system that ensures compliance with legal and tax requirements and provides accurate and useful information to management, investors, and external entities.

Taxes in Turkey include several categories of different taxes that individuals and companies must pay according to the applicable tax legislation. Here are some key taxes in Turkey and their collection methods:

1. Value Added Tax (VAT): VAT is a consumption tax levied on the sales of goods and services in Turkey. It is collected at each stage of the supply chain, from production to distribution and retail. The standard VAT rate in Turkey is currently set at 18%, with reduced rates of 8% and 1% applicable to specific goods and services. Companies are responsible for collecting VAT from their customers and remitting it to the tax authorities.
2. Corporate Income Tax: Corporate Income Tax is imposed on the taxable profits of companies operating in Turkey. The current corporate income tax rate is 22%. Companies are required to calculate their taxable income based on the applicable tax regulations, deducting eligible expenses and allowances. The tax is then paid annually or in advance installments throughout the year.
3. Personal Income Tax: Personal Income Tax applies to the income earned by individuals in Turkey, including salaries, wages, rental income, and business profits. The tax rates for personal income tax range from 15% to 35% based on income brackets. Individuals are responsible for reporting their income, calculating the tax liability, and making appropriate payments to the tax authorities.
4. Withholding Tax: Withholding tax is a tax deducted at source by companies or individuals making certain types of payments to others. It is applicable to various transactions, such as salaries, dividends, interest, royalties, and services. The withholding tax rates vary depending on the nature of the payment and the recipient’s status. The responsibility for withholding and remitting the tax to the tax authorities lies with the payer.
5. Social Security Contributions: Social security contributions are compulsory payments made by both employers and employees to fund the social security system in Turkey. These contributions cover various benefits, including health insurance, retirement, and unemployment insurance. The rates for social security contributions differ for employers and employees and are calculated based on the employee’s gross salary.

It’s important to note that tax regulations and rates may change over time, and it’s advisable to consult with a professional accountant or tax advisor to ensure compliance with the latest tax requirements in Turkey. AskinTurkey’s legal accounting services can provide expert guidance and support in navigating the complexities of the Turkish tax system and ensuring your company’s compliance.