REVIEW OF TAXATION OF COOPERATIVES THROUGH THEIR COMMERCIAL ENTERPRISES
DOI:
https://doi.org/10.15659/3.sektor-sosyal-ekonomi.18.11.1032Keywords:
Taxation of Cooperatives, Cooperative Economic Enterprise, Patronage Dividend Exception, Cooperative Net Margin, Taxation of Cooperative PatronsAbstract
Rules of the taxation of cooperatives within the scope of corporate tax have been redefined to be effective as of 2018. With the new regulation, “business done with non-patron” was defined and method of taxing the cooperatives through their commercial enterprises has been developed. In addition, the patronage dividends exception has been restricted to retail society, unlike the previous practice.
In this study, the effects of to exclude producer and credit cooperatives from the patronage dividends exception and taxing the cooperatives through their commercial enterprises were examined in terms of coopreatives and their patron taxation process.
In some aspects, the new approach provides solutions to the taxation problems of the cooperatives. It was found that it could create problems in the taxation process due to the fact that removal the rules of patronage income exception. The new approach not only creates different amount income exception than the previous practice but also disregards the rule of “single stage taxation” of cooperative margins
