Regulations on Turkish tax system dated 1949 and applications of income tax in Turkey: 1923 – 1960

Tax issue which takes an important place in Turkey and the World effect future-oriented investment plans of the taxpayers and governments and their decisions directly or indirectly. Tax income which is a title in tax issue is a tax type that gets on net total of annual incomes of taxpayer and provides financing of public expenditures in government. When we look at taxes levied on income in Turkey, we could see that this taxes take part in Ottoman period and even before Ottoman period. The most popular taxes today are income tax inside taxes levied on income. The history of income tax is older rather than inside taxes levied on income. In the beginning of republic period, profit tax which is a tax levied on income couldn't provide elasticity of domestic income, it couldn't be active and efficient hence the tax has been abrogated and then income tax which comes into force with Income Tax Law No. 193 dated 1949 has been able to come up to the present day with certain changes. In this study, applied income tax in Turkey till Income Tax Law and the process of transicion to income tax were examined. In addition, the profit tax which, is a kind of income tax of the republic period, was abolished and the income tax was introduced instead of profit tax. The process has been addressed in the light of debates, opinions and suggestions in the Second Economics Congress dated 1948. Economic and political improvements in the period when these taxes were force have been included. Finally, profit tax and income tax have been compared between the years of 1946 and 1960 and how much these tax types contribute to the economy and budget have been explained in detail.