Accounting for construction and taxation

Construction is an important Sector Since it Supports the needs of people and businesses. Besides, it has important contributions to other sectors and their infrastructure investments. It has a great importance on aconomies of countries, because of the greatest share among the investment expenditures. Construction sector has structural problems such as accumulation of costs and creation of revenues; the effect of geography on costs; purchase of other's lands; calculating the cost of each project; and diffierent taxation practices on the same project. This work aims to search the cost system used by the construction companies; methods to determine the profit; determination of the accounts according to Turkish Uniform accounting system and taxation and related problems. Since every project has different characteristics, it is necessary to use cost accounting system based on the Job order costing to determine the cost of each project. According to income tax regulations, "completed contract method" must be used. However, companies must use "percentage of completion method" to have more information about construction accounting. General taxation system is used when the project is applied to a company, but the special taxation system is used when the project is applied "under commitment basis." Besides, there are taxation systems such as income Stoppage, taxation stump duty, value added tax (V.A.T.) and other fees. KEY WORDS : Construction, cost, construction Accounting, taxation, cost system, contract. m