Lump-sum tax to be charged depending on administration spending for profit tax payment


The lump-sum tax for which an analysis and impact study are being conducted these days will be charged on those services for which the administration spending for the profit tax payment is high, both for the business owners and the state, said a release sent by the Cabinet of the Minister’s delegate for the small and medium-sized firms, tourism and business milieu.

The tax will be charged for such services as the ones provided by boarding houses, hotels, bars, restaurants, beauty parlours, car washing, tailoring and shoe-repair shops.

The paid amounts will not be equal for all the services and taken into account will be such indicators as the location’s capacity, the location quality and the average tariffs adequate to the location.

The authorities said the lump-sum tax will be introduced in an effort to simplify the administrative moves at the business owner and the state controlling institutions, for correctly highlighting the revenues and for achieving the profit so that it might be distributed for development or dividends by the business owners. Such business owners will pay the set amount, no matter how much profit they will make.

Furthermore, introducing the lump-sum tax seeks to curb corruption when checks are made at the service-supplying activities and to observe the ethics and fairness principles for the business milieu.

The impact study will be carried out after the authorities discuss with all the occupational and employers’ associations, with the details of the categories of services, the size of the lump-sum tax and the criteria for setting such tax size to also be discussed. The measure will also boost voluntary conformation, the release stressed.

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