Determination and taxation of income in the construction sector

Long-term construction and repair activities constitute an exception of the `?principle of periodicity?? applicable in respect of both the accounting principles and the tax legislation because of their overhanging to more than one calendar year. And due to this peculiarity, it has different taxation and accounting principles. In respect of tax legislation, taxation of the long-term jobs have been specially organized. In the construction and repair works named as `?Spread over years??, in other words, that are dependent to the account and undertaking of others in a qualification to exceed one calendar year, a special taxation regime applicable to its taxpayers has been provided in the relevant articles of the Income Tax Law and the Corporate Tax Law. Besides this characteristic of the long-term construction type, in fact the construction sector is in the status of a sector presenting different applications as a whole.The topics of cost determination, income determination, taxation and declaration regarding special construction and contracting works constitute speciality issues inside the peculiar structure of the construction sector. For the construction sector which is seen as the locomotive of economy, capital power is very important and the legal ways followed in the process of determination and taxation of income must constitute the foundation for practices that will not weaken the competitive power of the taxpayer. However, there are problems of the construction sector whose importance have increased even more with the rapid urbanization that wait for regulation by laws and the problems determined within the structure of this important sector has formed the basis to our study by also being supported with the poll studies.Particularly, taxation of the income obtained from construction activities has been handled together with the relevant law articles within the legislation and the problems encountered in practice. In the solution suggestions brought to the problems, legal contradictions were tried to be disclosed by pointing out to the anticipation of judicial-administrative consolidation of practice.