What is Stamp Tax?

whatisstamptax

Hiosis: What is Stamp Duty?

In today's business world, companies face various legal regulations and tax obligations while operating. Among these obligations, "stamp duty" holds significant importance in terms of documenting transactions and recognizing them legally. In this article, we will delve into what stamp duty is, how it is calculated, and its applications within the scope of "hiosis," a common tax type encountered in the business world in Turkey.

What is Hiosis?

Hiosis is a type of transaction regulated in the Turkish Commercial Code, aimed at formalizing processes such as company establishment, capital increase, dividend distribution, etc. Hiosis transactions are conducted through notaries, and a certain amount of stamp duty must be paid during these transactions. Hiosis transactions ensure the legal recognition of companies, thus holding a crucial place in the business world.

What is Stamp Duty?

Stamp duty is a type of tax payable in Turkey when various documents are issued or amended. It is paid through affixing or imprinting stamp duties on documents issued to formalize legal transactions or make changes to them. Stamp duty is one of the state's sources of income and is detailed in tax legislation.

How is Stamp Duty Calculated?

The calculation of stamp duty varies depending on the document or transaction. For example, the stamp duty rate on a contract is determined based on its value and type. As the value of the contract increases, the amount of stamp duty to be paid also increases. On the other hand, for transactions such as share transfers and capital increases, stamp duty is paid at specific rates.

Applications of Stamp Duty

Stamp duty is applied to various documents and transactions. These include contracts, promissory notes, policies, share transfers, assignments, commercial registers, among others. Stamp duty holds particular importance in processes such as company establishment, capital increase, and dividend distribution, being an essential cost for formalizing these transactions.

Conclusion

Hiosis is a crucial step for the legal recognition and formalization of Turkish companies, with stamp duty being an integral part of this process. Correct calculation and payment of stamp duty enable companies to operate confidently within the legal framework. Therefore, it is crucial for professionals in the business world to be knowledgeable about stamp duty and hiosis transactions.

27.03.2024

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