Tax integration and tax claim: An evaluation for European Union and Turkey

Corporate income tax has play important role in total tax revenues in Turkey. Capital companies, co-operative companies, state economic enterprises, economic entities owned by foundations and associations and joint ventures are subject to corporation income tax. Corporate earnings are consisting of the element of income. The elements of income are shown in the Individual Income Tax Law. These are commercial income, agricultural income, wages and salaries, professional income, income from immovable properties derived in Turkey and income from movable capital incurred in Turkey. Corparate income tax is a direct tax. Double taxation is an important problem in economy which is related to tax system. There are two kinds of direct taxes which are levied on income. These are personal income tax and corporate income tax. Personal income tax are levied on individuals on the basis of income recieved. In this tax the tax burden is on the individuals who pay them. On the other hand corporate income taxes are levied on firms on the basis of income recieved. First of taxpayers are taxed on corporate level. After that, they are taxed again on the earnings which are called dividends on other income elements. This problem is called as double taxation. Double taxation is defined as a big problem in tax system in many countries especially in United States of America. To solve this problem, and to case the tax burden some integration models are improved among the European Countries. In Turkey there is a tax claim method in tax law. Tax claims calculated on fifth of dividends recieved by the stockholders. t£*ıw»>B*sv<