Have You Increased Your Taxable Income from Social Media/Internet Earnings?
7440 General Communiqué on Restructuring Some Debts Can Help”.
The 7440 General Communiqué on Restructuring Some Debts, also known as the tax amnesty/peace in the public opinion, was published in the official gazette on March 25, 2023. The regulation covers many public debts, eliminating the risk of unreported earnings being examined like “casco” in the past.
Many “current” professions, such as YouTubers, influencers, Twitch streamers, and vloggers, who earn a living through social media platforms, have been notably affected.
Have you paid taxes on the income you’ve earned from these platforms? If you have not made any declaration or notification, a taxable income increase is vital for you!
What Does Taxable Income Increase Mean? In simple terms, a taxable income increase is an application that allows you to be exempt from tax audits by paying additional taxes determined by the Ministry of Treasury and Finance. By increasing your declared income by a certain percentage for past years, you avoid being subject to examination by the Ministry of Treasury and Finance for the period in which you make a taxable income increase.
There is no penalty for the periods in which you made a taxable income increase, and you are not asked to pay taxes for those periods by the Ministry of Treasury and Finance.
Why is Taxable Income Increase for Income Tax and Value Added Tax So Important? The fifth article of the 7440 General Communiqué covers regulations regarding taxable income and tax increase. According to the regulation, income tax payers who meet the conditions stated can avoid examination for the periods in which they make a taxable income increase. However, to make a taxable income increase, both a minimum percentage and amount are required.
In this way, a taxable income increase will only protect your income tax portion. There is also a VAT aspect to the process.
What Does VAT Taxable Income Increase Mean? If the income you obtained from social media or the internet is subject to VAT, the VAT taxable income increase will protect you from a penal assessment and put you under “casco” for tax audits. Therefore, increasing only the income tax portion may not be enough, and we recommend making a taxable income increase for both types of taxes.
How to Make a Taxable Income Increase? Those who want to benefit from the income tax side of the taxable income increase must increase their relevant year’s income by the determined rates and pay the tax calculated at a rate of 20% on the increased amounts to the tax office by May 31. The calculations and payment amount change depending on the year you want to make a taxable income increase.
On the other hand, taxpayers who pay all the taxes accrued as a result of the taxable or tax increase in full within the first installment payment period will receive a 10% discount.
