Taxation of the construction sector

The construction sector has undergone a serious development and development process within its structure in parallel with the increase of the urbanization rate. Thanks to the hundreds of sub-sectors in which it operates in intense interaction, this development has gradually increased, the construction sector has become the pioneer and indespensable sector of the countries. Capital strength and competitiveness level are of utmost importance for this sector, which is considered as the locomotive of the economy with its functions. For this reason, the processes related to the determination and taxation of the earnings in the construction sector should be carefully monitored. Construction activities are mainly divided into two main parts in terms of tax law. The main reason for the separation of these construction activities, which are separated as contracting constructions and private constructions, is due to the fact that these activities are subject to different taxation regimes. Especially when the activity exceeds one year, different taxation regimes are accepted for construction and repair works spread over years. The aim of the study is to provide information about both economic and legal and taxation dimension since the historical development of the construction sector. In particular, legal contradictions are revealed by considering the size of construction activities against various taxes, together with tax legislation and judicial decisions into consideration.