How much montly expenses of a LLC company in Turkey ?

How much montly expenses of a LLC company in Turkey ?

 

Limited companies registered in Turkey have various expense and cost items that occur every month as long as they continue their activities.

 

     First of all, to state; “What are the monthly expenses of limited companies? How much are the monthly expenses for the limited company? It would not be partially correct to answer such questions as "net and such costs". Because the answer to the question of how much the monthly expenses of the limited company are, is a complicated issue that includes many factors such as the size of the company, its activities, and the employment of personnel.

 

      If you are wondering about the expenses that will occur each month when you set up a limited company, in this article, we will discuss the monthly expense items of the limited companies in detail. With this information, you can approximately calculate the cost items that will occur each month for your limited company.

 

WHAT ARE THE MONTHLY FEES OF LIMITED COMPANIES REGISTERED IN TURKEY IN 2023?

 

     There are fixed and variable cost items that occur every month and in various other periods (such as quarterly, semi-annually, annually) since the date of establishment of limited companies.

 

     MONTHLY FIXED EXPENSES OF A LIMITED COMPANY

 

      The fixed expenses of the limited company represent the expense items that occur in various periods (monthly, quarterly, annually, etc.), even if there is no commercial activity in your company.

 

    The monthly fixed costs of a limited company with minimum requirements in 2023 are as follows.

 

1- Tax returns and Stamp Duty;

 

a - Stamp duty of Value Added Tax (VAT); 194.60 TL. It is paid monthly.

 

b- - Withholding Stamp Duty & Withholding and; If your workplace is for rent and no invoice is received for rent (if the owner is a real person), a withholding tax will be incurred every month, equal to twenty-five percent of the net rental price. In addition, if there are personnel, the income taxes of the personnel are included in this declaration. Companies with personnel are obliged to submit this declaration every month. Firms without personnel can submit this declaration quarterly. Each time the declaration is sent (monthly if monthly, quarterly if quarterly), a stamp duty of 230.70 TL is also calculated.

 

Note: The companies that own the workplace or the companies that are rented but receive an invoice for the rental price every month do not pay withholding tax for the rent.

 

c- Stamp tax of corporate temporary tax; It is paid as 393.90 TL every three months.

 

d- Stamp tax of Corporate Tax; It is formed as 393.90 TL per year. The figure changes every year.

 

e- Certification expenses of Accounting Books and stationery informatics expenses contribution share; You can think about 2,500 TL. It is paid once a year in the following years following the establishment of the company.

 

2- Accounting Bookkeeping service fee; Accounting service contracts are made on an annual basis, and payments are made on a monthly, semi-annual or annual basis, depending on the agreement. The size of the limited company is determined according to criteria such as the number of invoices, the number of personnel and business volume. You can ask for an offer.

 

3- The rental price of your workplace; Workplace rental fee is an important cost item that must be paid every month, even if there is no commercial activity in your limited company. This item of expense varies according to the characteristics such as the size and location of your workplace, specific to your company.

 

4 – Chamber of Commerce membership fees; Limited companies have been established as members of the chamber of commerce since their establishment. That is, membership of the chamber of commerce is not optional, it is mandatory. It is paid annually, depending on the chamber of commerce you are affiliated with. Given the year 2023, you can think of it as 600 TL – 700 TL per year.

 

If we summarize the fixed expenses of the limited company, even if there is no commercial activity, according to the minimum requirements in 2023 (excluding the workplace rental fee), you can consider an average cost of around 3.000 TL per month.

 

MONTHLY VARIABLE EXPENSES OF A LIMITED COMPANY REGISTERED IN TURKEY

 

      The variable expenses of the limited company are the costs that are completely specific to the company, according to criteria such as the company's income - expense status, personnel volume, number of invoices.

Data for 2023, variable expenses of a limited company are as follows;

 

1 - Value Added Tax (VAT); The VAT payment obligation of the limited company is formed every month according to the sales, purchases and expenses.

        VAT liability on invoices issued by your company is essentially an additional tax collected on behalf of the government. That is, the value added tax is calculated in addition to the value of your goods and services on your sales and is charged to the customer. From these taxes collected from the customer, the VAT you have paid on your goods-service purchase invoices is deducted. After deducting the VAT you have paid on your goods and services purchase invoices and various expense invoices, the remaining VAT is paid to the state.

 

       Rudely ; If the VAT total on your monthly sales invoices is more than the VAT total on your monthly expense invoices, VAT liability will be incurred as much as the excess.

 

2 - Corporate Tax; Corporate tax refers to the income tax taken from the income of the company. It is taken over the net profit according to the income of the company. The corporate tax rate in 2023 is 23%.

 

     Rudely ; It is calculated at the rate of twenty percent (20%) over the remaining net profit, after deducting the total of expenses and costs from the total income of your limited company. It is calculated every three months according to your income and expense situation.

 

3 – Personnel Insurance premiums; If you employ personnel in your limited company, monthly insurance premiums will be calculated for each personnel. Insurance premium payments are calculated according to the net salary of the personnel.

 

         According to the data for 2023, the monthly insurance premium of a staff working with a minimum wage of 8,500 TL is approximately 3,259 TL. The insurance premium increases with the increase in the salary of the personnel. In addition, companies that regularly pay their insurance premiums every month and do not owe SSI are given a monthly discount of approximately ten percent of the net insurance premium.

 

4 – Personnel Income Taxes; With the latest changes, the salaries of the minimum wage workers are exempt from income tax. In other words, there is no income tax for minimum wage earners. However, if the wage is higher than the minimum wage, income tax is calculated over the excess of the minimum wage.

 

For example ; In the period when the minimum wage is 8.500 TL, income tax is incurred over 2.500 TL of the monthly salary of the personnel whose net salary is 11.000 TL. Personnel income tax rate starts from fifteen percent (15%). As the income obtained during the year increases, the tax rate increases according to the income tax brackets.

 

 

IF WE SUMMARY; According to the minimum data for the year 2023, even if a limited company has no commercial activity, monthly expense items of 3.000 TL are incurred for monthly accounting bookkeeping fees and monthly stamp taxes.

 

IS IT REQUIRED FOR A LIMITED COMPANIES REGISTERED IN TURKEY TO WORK WITH A ACCOUNTANT?

 

         According to our tax laws, it is obligatory for all registered companies, with some exceptions, to complete their accounting bookkeeping processes and submit their tax returns every month. Financial Advisors are authorized to send tax returns. Tax returns cannot be sent without a Certified Public Accountants (CPAs).

 

         So, even if there is no activity in your company, working with a Financial Advisor is a legal requirement. Financial penalties amounting to approximately 8.000 TL are imposed on companies whose accounting and bookkeeping works are not done and tax returns are not sent. This penalty is deducted separately for each month for which tax returns are not submitted.

 

       On the other hand, an experienced CPA will ensure that your company is established on a legally sound basis, make the necessary legal notifications, protect your business against financial risks and guide you. It will enable you to benefit from various incentives, discounts and tax exemptions offered to companies.

 

 

If you are thinking of establishing a limited company in Turkey, you can contact us to get a detailed cost table specific to your business FREE OF CHARGE.