Accounting and Tax Practices in the TRNC: Digitalization, Tax Compliance Processes, and Payroll Management

Tax System and Compliance Processes in TRNC

Tax Types and Rates

The main types of taxes applied in the TRNC are as follows:

• Income Tax: A progressive system is applied for individuals.

• Corporate Tax: A flat-rate tax system is available for companies.

• Value Added Tax (VAT): Applied on the supply of goods and services.

Tax Compliance Processes

Businesses must follow the steps below to fulfill their tax obligations:

1. Tax Liability Registration: Registration with the Income and Tax Department is required.

2. Filing Declarations: Income and corporate tax declarations must be submitted periodically.

3. Tax Payments: Taxes calculated in accordance with the declarations should be paid on time.

Digital Accounting and E-Invoice Applications

Digital Accounting

Digital accounting applications in the TRNC allow businesses to manage their financial transactions electronically. These systems offer advantages such as data security, fast processing, and easy access.

E-Invoice System

The e-invoice system run by the TRNC Ministry of Finance and the Income and Tax Department enables businesses to digitize their invoicing processes. Applicants wishing to join the e-invoice system must first be users of the internet tax office. You can visit the TRNC Tax Department website for application procedures and detailed information.

Payroll and Social Security Transactions

Payroll Management

Businesses must regularly prepare payrolls containing information about their employees' salaries, leave, overtime, and similar data. Payroll management is important for both employee satisfaction and legal compliance.

Social Security Institution (SGK) Transactions

Social security premium payments are mandatory for employees in the TRNC. Employers must regularly report and pay their employees' premiums to the Social Insurance Department.

Accounting and Tax Services with ORTAC

As ORTAC, we provide comprehensive accounting and tax services to businesses operating in the TRNC. Our services include the following:

• Accounting Consultancy: Organization and reporting of financial records.

• Tax Consultancy: Preparation of tax declarations and tax planning.

• Digital Accounting Systems: Setup and integration of e-invoice and digital accounting systems.

• Payroll and SGK Services: Preparation of employee payrolls and tracking of social security transactions.

👉 To securely manage your accounting and tax processes in the TRNC, contact us