Tradesmen like taxi drivers and mechanics will also be introduced to taxes in the new year.

With the Presidential decree published in the Official Gazette, the ability of tradesmen in districts under the umbrella of a 'metropolitan municipality' with a population exceeding 30 thousand to keep lump sum (simple) books was abolished.

For example, while two taxpayers operating restaurants and earning the same revenue paid taxes using the real tax method, the restaurant business in Ankara did not pay income tax using the simple method.

TAXES AND EXPENSES WILL INCREASE

With this change, while the professions that will be taxed in the real method are listed, the accounting expenses and taxes to be paid by the professions in this class will be increased significantly.

According to the regulation, those operating taxis, minibuses, dolmuş, shuttles and public buses in metropolitan cities will not be able to benefit from the simplified method as of January 1, 2026, and their earnings will be taxed according to the real method.

One of the conditions required to benefit from the simple method is that the annual revenue is below 480 thousand lira.

Considering the license plate prices of commercial taxis and minibuses and the monthly rental fees paid in case of renting them, it was decided that urban passenger transport activities would not be within the scope of the simplified procedure.

In some major cities, commercial taxi license plates sell for 6-7 million lira. It seems unlikely that the annual revenue generated from transportation operations using these vehicles will fall below 480,000 lira.

Likewise, the fact that these plates are rented for a monthly fee starting from 40 thousand liras is an indication that the annual revenue is far above this limit.

Here are the professions that will be affected...

a) Those who are engaged in the production of all kinds of commodities, b) Those who are engaged in the purchase and sale of all kinds of commodities (excluding those who are engaged in the purchase and sale of retail commodities on an itinerant basis or by following the market without opening a dedicated business), c) Those who are engaged in all kinds of construction-related work, ç) Those who are engaged in all kinds of maintenance and repair work of motor vehicles, d) Those who operate restaurants and similar service establishments, e) Those who operate entertainment and recreational places,

f) Those engaged in urban passenger transportation activities.

MAY START A PRICE HIKE FESTIVAL

As a result of the implementation, small tradesmen who will be taxed using the real method will have to pay three provisional taxes per year and will be required to keep books on the basis of business ledger or balance sheet, which will cause a significant increase in costs.

Economists point out that rising costs will be directly reflected in the prices of products and goods offered by tradesmen, and a wave of price increases is expected for many products, from needles to thread, in the coming days.

Source: News Center