TURKISH TAXATION SYSTEM (IN GENERAL)

TAXES ACCORDING TO ECONOMIC RESOURCES Taxes on Income – Income tax, Corporate income tax Taxes on Capital – Property Tax, Motor Vehicle Tax, Inheritance and gift tax Excise Tax – Value Added Tax, Special Consumption Tax, Banking and Insurance Transactions Tax

ASSESSMENT AND COLLECTION ON THE BASİS OF TAX TYPE TAX TYPE ASSESSMENT (Billion) COLLECTION RATIO (%) INCOME TAX 5,3 82,61 CORPORATION 2,7 59,33 INCOME TAX MVT 9,5 93,74 SCT 87,2 98,26 IGT 467 million 83,79 VAT 81,1 90,59 BIT 8 100

TAX CALENDAR The Tax Calendar prepared by Revenue Administration (GİB) in which information about legal terms of tax return and payment is published on internet and printed as a brochure in December of each year.

Methods of Tax Collection

Public Receivables Collected by Revenue Administration (GİB) More than 300 different types of claims such as; Taxes, duties and charges Tax penalties Administrative fines Judicial fines Legal expenses Public claims Late fees Revenue Administration (GİB) Tax offices General Directorate of Accounting fiscal directorate are entitled in the prosecution these claims collected.

Methods of Payment Which methods must be apply in the collection of public receivables is enacted. Cash payment or payment with cheque to pay desk is the general method of payment. Special methods of payment Paying through the bank Payment with cheque Payment through post office. Payment via making a remittance. Payment by credit card, bank card and others.

DEPOSITING OF THE COLLECTIONS BY TAX OFFICES INTO THE ACOUNT OF TREASURY 1 - For each of tax offices by the end of the day – to branch Ziraatbank, 2 - Branches Ziraatbank Central Branch of Ankara Internal Payment Account of Treasury, 3 - Internal Payment Account of Treasury Central Bank.

PROTOCOLS MADE BY OUR PRESİDENCY AND THEIR WORKING PROCESS A bank, on the basis of claims entitled to collect; Cash 3,7 days Collection by credit card 20 th day transfers into account of Treasury. – No fee, commission, interest etc.  Collection by General Directorate of Turkish Post (PTT) are transfered into account of Treasury 3,7 days A Bank transfers information about collection in cash, account or by credit card to Revenue Administration (GİB) on the following day by 12:00 send via internet.

Tax Offices Automation Project (VEDOP) VEDOP is a collection of projects holding large number of projects. These projects; Electronic Tax Offices Automation (E-vdo) İnternet Tax Office E-Declaration E-Collection Payment by Virtual POS Administration (GİB) İntranet E- Lien İnternet Services Value Added Tax Refund Risk Analysis E- İnvoice E-Book E-Ticket E- Archive E- Notification EBTİS

THE REPORTS PRODUCED UNDER VEDOP Accrual, Collection, Cash Bank Turkish Post (PTT) Credit Card Tax Type Sector, based on taxpayer analysis Risk assessment data interactive reporting This offers instant statistical information.