According to the Income Tax Law No. 193 the sum of earnings in one calendar year of seven income elements must be declared with an income statement, unless there is a contrary regulation. In contrast to the general principal of collection and declaration, some elements will not be declared and will not be added to other income parts. In the calculation of income tax, the first priority will be given to legal allowances which will be deducted from total revenue. After these calculations we will reach to total taxable income. Since they will affect final taxable income, these legal deductions are very important to reach final statement. According to the Income Tax Law; true calculation of legal deductions (donations, health and education expenses, research and development spending, social security contributions and sponsorships) will eliminate the risk of tax base erosion and incomplete measurement of taxable income.
According to the Income Tax Law No. 193 the sum of earnings in one calendar year of seven income elements must be declared with an income statement, unless there is a contrary regulation. In contrast to the general principal of collection and declaration, some elements will not be declared and will not be added to other income parts. In the calculation of income tax, the first priority will be given to legal allowances which will be deducted from total revenue. After these calculations we will reach to total taxable income. Since they will affect final taxable income, these legal deductions are very important to reach final statement. According to the Income Tax Law; true calculation of legal deductions (donations, health and education expenses, research and development spending, social security contributions and sponsorships) will eliminate the risk of tax base erosion and incomplete measurement of taxable income.