Although not enacted yet, some of the articles in the bill regarding the new tax regulations that are being discussed in the Grand National Assembly of Turkey, VAT and SCT paid in the purchase of passenger cars used for both commercial gain and self-employment activities, depreciation and expenses of those taken into the inventory, and deduction from the tax base of passenger cars acquired through leasing. Regarding the limitations on the rental fees that can be made.
The envisaged regulation covers all passenger cars regardless of any business size, field of activity, or for what purpose they are used within the business. Excluded are those whose activities are partly or wholly in the rental or operation of passenger cars for this purpose. However, in any case, passenger cars must be for the purpose of obtaining and maintaining commercial and professional income. It is not possible to deduct the expenses of passenger cars that are not used outside of operating activities or for the purpose of earning income, even if they are included in the inventory.
With the new regulation, the limitations on depreciation and expenses related to passenger cars of those who earn commercial income and those who are self-employed are as follows;
|Expense Type||Expense Ceiling Amount and Ratio|
|Monthly rental fee that can be expensed for each of the passenger cars acquired through leasing (*)||5.500.-TL|
|The sum of the special consumption tax and value added tax that can be expensed on the acquisition of passenger cars||115.000.-TL|
|The rate that can be deducted from the tax base from the expenses related to passenger cars(*)||% 70|
|Depreciation ceiling to be expensed over the first acquisition price (*)||135.000.-TL|
|If the VAT and SCT amount is included in the cost, the depreciation ceiling that can be expensed in the first acquisition (*)||250,000.-TL|
*Except for those whose activities are partly or wholly renting or operating passenger cars for this purpose.
What Will Happen to Expenses That Cannot Be Discounted?
Expenses related to the activity, which cannot be deducted from the tax base due to the regulations in the laws, are added to the tax base as Legally Unacceptable Expenses (KKEG) in the income or corporate tax returns of the relevant companies. For this reason, the commercial gains in the income statements and balance sheets of the enterprises and the financial gains that make up the tax base differ. As KKEG, there are payments that are not considered as expenses in the determination of the tax base as per the law, even if they are related to activities such as motor vehicle taxes, traffic fines and fines of passenger cars.
With the foreseen regulation, the amount exceeding this amount must be recorded as KKEG for passenger car rentals over 5,500.-TL per month.
Again, % 70 part of the expenses related to passenger cars will be taken into account as an expense in the determination of the tax base, while % 30 part will be considered as KKEG.
While the part of the monthly price exceeding 5.500.-TL in passenger car rentals and the value added taxes related to % 70 part of the expenses related to passenger cars are subject to deduction in VAT returns, VAT corresponding to amounts exceeding this amount and this rate are subject to discount in VAT returns. will not be done.
E.g Only 5.500.-TL of the passenger car rented with a monthly fee of 10.000.-TL plus 1.800.-TL VAT can be deducted by the commercial enterprise in the determination of the tax base, and 990.-TL corresponding to this amount (5.500 x % 18 =) The subject of deduction will be made in the VAT declaration and the rest will be evaluated as KKEG.