Taxation and acounting of distribution of profit on stock corporation

The main purpose of the business enterprises is to make profit and distribute it to the shareholders. Profit is the positive difference among incomes and expenses simply. The main criterion for the performance of business enterprises is the amount of profit they made. A considerable amount of the profit obtained in a fiscal period has to be paid to the state as income tax and the remainder is retained as reserves which may be distributed to the shareholders and others as dividend.In principle, the rules concerning profit distribution are determined by the Turkish Commercial Law. Profit distribution had been studied from the view of Turkish Commercial Law, Capital Market Law and tax legislation. The accounting principles of profit distribution had been examine also.A final point of notice maybe is that there are many rules determined by different legislations with regard to the profit distribution. We hope, the whole legislation should be reviewed and the rules of profit distribution should be simplified.