Simple Procedure Taxation


The simple taxation system is designed to simplify the financial processes of small businesses and lighten the tax burden. Unlike other tax alternatives, it has many advantages. For example, it is exempt from VAT declaration obligation. All these lead to the answer that "What is simple taxation?" is one of the ways of measuring commercial income that facilitates entrepreneurs.

What Are the Advantages of Simple Taxation?

According to Article 46 of the Income Tax Law, those who meet certain conditions can benefit from the simple taxation system. Taxes in this type of liability, which provides many conveniences, are calculated with the following formula:

(Period profit + Product inventory at the end of the period) - (Product inventory at the beginning of the period + Purchases during the period + Expenses) = Profit/Loss

The tax rate resulting from the application of the above formula is paid by those subject to the simple method at certain intervals. In addition, taxpayers benefiting from the aforementioned system also acquire all the advantages listed below.

There is no obligation to keep records unlike the actual method. There is no obligation to declare VAT on a monthly basis. Tax deduction is only made for wages. The MUHSGK declaration is also made only for wages. They are not subject to the "Provisional Tax Declaration" practice in three-month periods. They benefit from commercial income and young entrepreneur exceptions. They benefit from taxpayer discounts. What Are the Differences Between Simple Tax and Real Taxation?

Those subject to income tax are divided into two different groups in terms of their income. One of these is those subject to simple tax. Taxpayers benefiting from the simple method gain various advantages and make financial processes more practical. The answer to the question "What is real taxation?" is different. Those subject to this type also pay VAT, withholding, and income tax.

The advantages of simple taxation mentioned earlier also reveal the differences between the two taxation types. In addition, taxpayers of the simple method can benefit from the disabled discount. Also, they only need to submit a declaration for insured employees within the scope of Law No. 5510.

Conditions for Being Subject to Simple Taxation

Those subject to simple taxation must comply with two different groups of conditions. These are general and special conditions. Each is covered by the Income Tax Law. At the same time, the details are also provided below.

What Are the Conditions for Being a Simple Taxpayer?

To be a taxpayer in the simple method, it is necessary to meet both general and special conditions. Then, the facilities and advantages can be obtained. General conditions can be listed as follows:

The owner of the business must physically work in his/her own business. (The inability to be at work due to unavoidable circumstances does not affect this condition.) Comparable rental conditions must be met. If the business center is in metropolitan municipalities, the rent should not exceed 55,000 TL. If in small municipalities, it should be valued at a maximum of 34,000 TL. The person should not already be a taxpayer under the actual taxation method. If the taxpayer does not meet one of the above conditions, even if they meet all other conditions, they cannot benefit from the simple method.

Special Conditions for Being Subject to Simple Taxation

Those subject to simple taxation are also individuals who meet special conditions. Again, these conditions are determined through laws. The details are as follows:

Expenditures on purchased products should not exceed 690,000 TL. If disposed of, the sales amount should not exceed 1,100,000 TL. In addition to buying and selling income, the earned income should not exceed 340,000 TL. The total of trading income and other additional incomes for the year 2024 should be below 690,000 TL.


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