Taxation of self-employment earnings for income tax: Comparative an analysis

Tax revenues are the largest revenues in the public budgets that are gathered to ensure the public activities are carried out. These incomes are classified according to their subjects and taxes are collected on the basis of legal basis from tax payers with this classification. . In the tax-related stages, various tax principles are observed by the public administrations. Generally, the legal grounds of the taxes are prepared by taking these principles into consideration. No doubt, one of the elements of income taxed by taking into consideration some principles is the earnings of self-employed. Self-employed earning is one of the elements of personal income generated by real persons. This earning consists of a combination of the elements of labor and capital which cannot be fully separated. Self-employment earnings are similar in some ways to commercial earnings and in some respects to wage income. However, in this type of earning, the use of professional knowledge is in the foreground and it is the earning obtained without being dependent on a person or company. Therefore, taxation is of particular importance in this type of earning. In this study, firstly, the concept of self-employment earning is theoretically examined in terms of the foundations of taxation. Subsequently, the issue of taxation of self-employment earnings in Turkey has been discussed together with some principles observed in taxation in terms of income tax laws since 1926. The aim here is to reflect the Fiscal Administration's view of taxation of this type of earnings in the period from 1926 to today. In this context, attention was also paid to the differences in practice that emerged over time in our country. In addition, about this earning tax practices in our country and the practices in foreign countries has examined comparatively and the similarities and differences between the applications have tried to be put forward. As a result of our evaluations, it has been concluded that the implementation of some of the regulations which are thought to have been made in order to facilitate the taxpayers ' compliance with the tax in our country would benefit both the Financial Administration and the taxpayers by mentioning the tax practices in the foreign countries involved in the study. However, proposals have been made for the resolution of some of the issues that are subject to dispute and for the legislative changes that need to be made. In making these proposals, the income tax legislation of our country from past to present and the income tax legislation of foreign countries included in our study were also taken into consideration.