Evaluation of agricultural sector in turkey within income tax

Abstract

As countries develop, the share of agricultural sector in domestic income has begun to reduce along with the increasing industrialization. According to the data of 2017, in Turkey the share of agriculture in domestic income is 6,1 %, and it is still in a considerable amount. However, the share of agricultural sector in employment is 19,4 % and this is a very high rate. Today, one out of every five people works in agricultural sector. Therefore, it can be thought that there is a serious tax potential in agricultural sector. Income tax is a type of tax collected on the incomes of real persons. In Turkish Income Tax System, income is defined in 1st article of Income Tax Law (ITL) numbered 193. Accordingly, income is the net amount of incomes and revenues that a real person obtains in a calendar year. The incomes and revenues that will be subject to annual income tax consist of the income items in 2nd Article of ITL. These related items are business incomes, agricultural incomes, wages, self-employment incomes, real property incomes, movable assets incomes and other incomes and earnings. Income tax is a tax based on declaration. The unitary structure of Turkish Income Tax System necessitates the declaration and taxation of agricultural incomes based on real taxation by gathering in annual declaration along with the incomes obtained from the seven income items mentioned above. However, stoppage at source was adopted as the main principle.