Application of Tax Exemptions of Share Earnings in Turkey: An Evaluation of Aims and Effects

Selen U., Ozen E.

MALIYE DERGISI, no.161, pp.148-166, 2011 (ESCI) identifier

  • Publication Type: Article / Article
  • Publication Date: 2011
  • Journal Name: MALIYE DERGISI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.148-166
  • Keywords: Tax Exemption, Taxation, Stock, Capital Market, Istanbul Stock Exchange
  • Bursa Uludag University Affiliated: No


This study tries to find out the subscription of tax exemptions which is provided to share earnings in Turkey and its effect on development of capital market and justice of taxation. In this context, general and simplified calculations which is emerged by Istanbul Stock Exchange data have been used. The net amount of increment value earning of share portfolio is taken into account in the calculation of tax assessment. It is assumed that this calculated earning value belongs to natural persons and taxed on the scale of %10 (ten percent). In conclusion, it is found out that the tax exemptions which is provided to share earnings is not main determinant on development of capital market and the market is responsive to closer. As the tax exemption doesn't serve the purpose of application it causes public revenue loss and deterioration of the tax justice.