Law No. 7524 has entered into force, thus beginning the tax reform. One of the important changes has affected the taxation of individuals. They must provide a report on the average income received from professional activity for the year, month and even day.
A big problem in the tax sphere is underreporting income and increasing expenses in order to pay lower income tax. This has led to a shortage of funds in the Turkish budget. Taxpayers must fill out a questionnaire on projected income, which will be compared with actual figures.
If the amount of actual and projected income differs by more than 20%, the taxpayer will have to provide an explanation.