Mr A is a dentist having his own clinic in Alsancak/ İzmir. He calculated his gross independent personal service income as 170.000 TL in 2021. The deductible expenses incurred for that activity amounted to 65.000 TRY. • The net amount of independent personal service income which has to be reported in tax return is (170.000-65.000)= 105.000 TRY • He chooses lump-sum expense method to calculate net rental income which will be included and declared in the personal income annual tax return. • Mr. A has also two flats in Karşıyaka/İzmir. The rental income on those flats were 40.000 TRY in 2021. Gross amount of rental income from flats: 40.000 TRY • Mr. A had another flat in İzmir which he bought it in March 2018 and he disposed it in February 2021. The net gain on his disposal was calculated as 45.000 TRY. • Lump-sum expense (40.000 x %15): 6.000 TRY • The taxpayer has paid 8,000 TRY of Social Security Institution for Artisans and Self-Employed Persons (BAĞKUR) premiums. • The paid witholding tax is 3.400 TRY. • The paid advance tax is 2.500 TRY • He chooses lump-sum expense method for his rental income. Taxable rental income (40.000 - 6.000): 34.000 TRY • The tax payer sold the assets within the 5 years, so capital gains are subject to tax • Taxable capital gain (45.000-19.000): 26.000 TRY > Exclusion amount on capital gain is 19.000 TRY for 2021. Taxable income (105.000 + 34.000 + 26.000)= 165.000 TRY • Exclusion for rental income 7.000 TRY • Required: Calculate Mr A's personal income tax liability for 2021. • Social Security Institution for Artisans and Self-Employed Persons (BAĞKUR) premiums - 8,000 TRY Tax Base (139.000-8.000) 157.000 TRY Tax bases and tax rates for other than wages and salaries stated in Article 103 of the PITL for 2021 are as follows: Calculated Personal Income Tax 39.640 TRY Tax Credits: • Up to 24,000 TRY ► 3.600 TRY for 24,000 TRY of 53.000 TRY, for more 15% Tax Paid Withholding -3.400 TRY 20% ► 9.400 TRY for 53.000 TRY of 130.000 TRY, for more Advance paid tax -2.500 TRY 27% ► 30.190 TRY for 130.000 TRY of 650,000 TRY, for more ► 212.190 TRY for 650,000 TRY of more than 650,000 TRY, Tax payable (39.640-(3.400+2.500)) 33.740 TRY 35% • Stamp tax payable 92.20 TRY for more 40%
Mr A is a dentist having his own clinic in Alsancak/ İzmir. He calculated his gross independent personal service income as 170.000 TL in 2021. The deductible expenses incurred for that activity amounted to 65.000 TRY. • The net amount of independent personal service income which has to be reported in tax return is (170.000-65.000)= 105.000 TRY • He chooses lump-sum expense method to calculate net rental income which will be included and declared in the personal income annual tax return. • Mr. A has also two flats in Karşıyaka/İzmir. The rental income on those flats were 40.000 TRY in 2021. Gross amount of rental income from flats: 40.000 TRY • Mr. A had another flat in İzmir which he bought it in March 2018 and he disposed it in February 2021. The net gain on his disposal was calculated as 45.000 TRY. • Lump-sum expense (40.000 x %15): 6.000 TRY • The taxpayer has paid 8,000 TRY of Social Security Institution for Artisans and Self-Employed Persons (BAĞKUR) premiums. • The paid witholding tax is 3.400 TRY. • The paid advance tax is 2.500 TRY • He chooses lump-sum expense method for his rental income. Taxable rental income (40.000 - 6.000): 34.000 TRY • The tax payer sold the assets within the 5 years, so capital gains are subject to tax • Taxable capital gain (45.000-19.000): 26.000 TRY > Exclusion amount on capital gain is 19.000 TRY for 2021. Taxable income (105.000 + 34.000 + 26.000)= 165.000 TRY • Exclusion for rental income 7.000 TRY • Required: Calculate Mr A's personal income tax liability for 2021. • Social Security Institution for Artisans and Self-Employed Persons (BAĞKUR) premiums - 8,000 TRY Tax Base (139.000-8.000) 157.000 TRY Tax bases and tax rates for other than wages and salaries stated in Article 103 of the PITL for 2021 are as follows: Calculated Personal Income Tax 39.640 TRY Tax Credits: • Up to 24,000 TRY ► 3.600 TRY for 24,000 TRY of 53.000 TRY, for more 15% Tax Paid Withholding -3.400 TRY 20% ► 9.400 TRY for 53.000 TRY of 130.000 TRY, for more Advance paid tax -2.500 TRY 27% ► 30.190 TRY for 130.000 TRY of 650,000 TRY, for more ► 212.190 TRY for 650,000 TRY of more than 650,000 TRY, Tax payable (39.640-(3.400+2.500)) 33.740 TRY 35% • Stamp tax payable 92.20 TRY for more 40%
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 32P
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This picture have answers but I just want to learn In this question the income tax calculated how was it found? what is the transactions? help please
Transcribed Image Text:Mr A is a dentist having his own clinic in Alsancak/
İzmir. He calculated his gross independent personal
The net amount of independent personal service income which has
to be reported in tax return is (170.000-65.000)=
service income as 170.000 TL in 2021. The deductible
105.000 TRY
expenses incurred for that activity amounted to 65.000
TRY.
He chooses lump-sum expense method to calculate net rental
income which will be included and declared in the personal income
annual tax return.
Mr. A has also two flats in Karşıyaka/İzmir. The rental
income on those flats were 40.000 TRY in 2021.
Gross amount of rental income from flats:
40.000 TRY
Mr. A had another flat in İzmir which he bought it in
March 2018 and he disposed it in February 2021. The
net gain on his disposal was calculated as 45.000 TRY.
• Lump-sum expense (40.000 x %15):
6.000 TRY
The taxpayer has paid 8,000 TRY of Social Security
Institution for Artisans and Self-Employed Persons
(BAĞKUR) premiums.
Taxable rental income (40.000 - 6.000):
34.000 TRY
The paid witholding tax is 3.400 TRY.
The tax payer sold the assets within the 5 years, so capital gains
are subject to tax
• The paid advance tax is 2.500 TRY
He chooses lump-sum expense method for his rental
income.
Taxable capital gain (45.000-19.000):
26.000 TRY
• Exclusion amount on capital gain is 19.000 TRY for
2021.
Taxable income (105.000 + 34.000 + 26.000)=
165.000 TRY
Exclusion for rental income 7.000 TRY
Social Security Institution for Artisans and Self-Employed Persons
Required: Calculate Mr A's personal income tax liability
for 2021.
(BAĞKUR) premiums
- 8,000 TRY
Tax Base (139.000-8.000)
157.000 TRY
Tax bases and tax rates for other than wages and salaries
stated in Article 103 of the PITL for 2021 are as follows:
Calculated Personal Income Tax
39.640 TRY
Tax Credits:
Up to 24,000 TRY
15%
Tax Paid Withholding
-3.400 TRY
3.600 TRY for 24,000 TRY of 53.000 TRY, for more
20%
Advance paid tax
-2.500 TRY
9.400 TRY for 53.000 TRY of 130.000 TRY, for more
27%
30.190 TRY for 130.000 TRY of 650,000 TRY, for more
Таx рayable (39.640-(3.400+2.500))
33.740 TRY
35%
212.190 TRY for 650,000 TRY of more than 650,000 TRY,
Stamp tax payable
92.20 TRY
for more
40%
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