1. Mrs. D is living in zmir, leased out his flat as residency premises in zmir and obtained 85.000 TRY. Mrs. D had another flat in zmir which he bought it in 2017 and he disposed it in 2021. The net gain on his disposal was calculated as 80 000 TRY.

She prefers the lump-sum expenses method.

Exclusion for rental income 7.000 TRY

Exclusion for capital gain 19.000 TRY.

She chooses lump-sum expense method for his rental income.

There is no withholding taxation.

Use the income tax schedule for 2021 from the slides.

Required: Calculate Mrs. Ds personal income tax liability for 2021. (12.5 points)

2. Mr. A is a Doctor having his own medical office in zmir. He calculated his gross independent personal service income as 320.000 TRY in 2021. The deductible expenses incurred for that activity amounted to 195.000 TRY. Mr. A has also a flat in stanbul. The rental income on this flat was 55.000 TRY in 2021.

The taxpayer has paid 10.000 TRY of Social Security Institution for Artisans and Self-Employed Persons (BAKUR) premiums.

The paid withholding tax is 11.000 TRY.

The paid advance tax is 5.000 TRY

He chooses lump-sum expense method for his rental income.

Exclusion for rental income is 7.000 TRY

Use the income tax schedule for 2021 from the slides.

Required: Calculate Mr. As personal income tax liability for 2021. (12.5 points)

3. Mrs E obtained dividends of a gross amount of 150.000 from a full taxpayer joint stock company (XYZ) in 2021. The obtained dividend has been subject to 15% tax stoppage made within the corporation, and so the stoppage amount is 225.000 TRY. On the date of collection and expenditure, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 10 TRY. Mrs. E had a flat in zmir where she bought it in 2015 and she disposed it in 2021. The net gain on his disposal was calculated as 180 000 TRY.

Exclusion for capital gain 19.000 TRY.

Use the income tax schedule for 2021 from the slides.

Required: Calculate Mrs. Es personal income tax liability for 2021. (12.5 points)

4. Mr H earned taxable income from three separate employers in 2021, all withheld. Wages from the first employer 24.000 TRY, subjected to a witheld tax of 15% within the organization and this amount is 3.600 TRY. Wages from the second employer 60.000 TRY, subjected to a witheld tax of 15%, 20%, 27% within the organization and this amount is 11.290 TRY. Wages from the third employer 200.000 TRY subjected to a witheld tax of 15%, 20%, 27% within the organization and this amount is 49.890 TRY.

Use the income tax schedule for 2021 from the slides.

Required: Calculate Mr H. personal income tax liability for 2021. (12.5 points)

5. Explain the meaning of the Loss Relief, Tax Relief and Tax Credit. Give the examples each of them. (12.5 points)

6. Explain the full tax liability (Residents) and limited tax liability (Non Residents) for the personnel income tax. Explain the taxation methods for residents and non-residents. (12.5 points)

7. Explain the economic principles of taxation. (12.5 points)

8. Describe the exemption and exclusion. Interpret the similarities and differences. Give five examples of exemption and five examples exclusion for the Personnel Income Tax. (12.5 points)