|
PRODUCTION
COST OF A FIRM WITH $100 MILLION OF TURNOVER,
WITHIN OR OUTSIDE THE FREE ZONE
|
Turkey
Million
$
|
İSBAŞ
Million
$
|
|
|
Cost of imported material
|
|
|
|
|
1. Cost of imported material
|
22 %of turnover is assumed to be imported.
|
22,00
|
22,00
|
 |
|
1.1.Cost
of letter of credit for imported material
|
1,5%
of the 22 million $ imported material letter
of credit expense 22 x 0.015
|
0,33
|
0,33
|
|
|
1.2.
Tax of letter of credit
expense
|
Bank transaction tax of 5% for the L/C expense0.44
x 0.05
|
0,02
|
-
|
|
|
1.3. RUSF (%6)
|
No % 6 Resource Utilization Support Fund paid
in ISBAS
22 x 0.06
|
1,32
|
-
|
|
|
1.4.
VAT financing
|
VAT
financing of material for 2 months at 1 % Monthly
2 x 0.17 x 0.01 x 2
|
0,006
|
-
|
|
|
1.5.
Other expenses related to imports
|
|
0.75
|
0,75
|
|
|
Cost
of domestic material
|
|
|
|
|
2. Cost of domestic material
|
24 %of turnover is assumed to be domestic material
|
24,00
|
24,00
|
|
|
2.1.
VAT financing
|
VAT financing of domestic material for 2 months
at 1 % monthly
24 x 0.17x 0.01 x 2
|
0,072
|
-
|
|
|
2.2.
Other
|
Other
expenses related to domestic material
|
0,49
|
0,49
|
|
|
3.WAGES :
Assumed as 8% of Turnover 8 million $
|
% 65 of net wages payment 8 x 0.65
|
5,2
|
5,2
|
|
|
35 % of wages are income tax
|
No
35% withheld tax paid at ISBAS
8 x 0.35
|
2,8
|
-
|
|
|
General
Production Cost
|
|
|
|
|
4.1.
Energy
|
Energy
without tax at İSBAŞ
|
1,0
|
0,6
|
|
|
4.2.
Indirect material
|
Assumed
as 2 % of turnover
|
2,0
|
2,0
|
|
|
4.3. Indirect material VAT financing
|
VAT
financing for 2 month at 1 % monthly
2 x 0.17x 0.1 x 2
|
0,06
|
-
|
|
|
4.4.
Indirect Services
|
Assumed
as 1 % of turnover
|
1,0
|
1,0
|
|
|
4.5.
Indirect Services VAT financing
|
VAT
financing of indirect services for 1 month at
1 % monthly
1 x 0.17 x0.01 x 1
|
0,001
|
-
|
|
|
4.6.
Indirect Wages assumed as 4% of turnover
|
68
% net wages payment
4 x 0.68
|
2,72
|
2,72
|
|
|
32 % of Indirect wages are withheld taxes
|
32
% of withheld tax not paid in İSBAŞ4 x 0.32
|
1,28
|
-
|
|
|
5.
Depreciation
|
|
4,0
|
4,0
|
|
|
General
Expenses
|
|
|
|
|
6.1.
Energy expenses
|
Energy
without tax at İSBAŞ
|
0,7
|
0,0.512
|
|
|
6.2.
Indirect materiel
|
Assumed
as 1 % of turnover.
|
1,0
|
1,0
|
|
|
6.3.
Indirect materiel VAT financing
|
Financing
for VAT paid for indirect material for 1 month
1 x 0.15 x 0.01 x 1
|
0,001
|
-
|
|
|
6.4.
Indirect Services
|
Assumed
as 2% of turnover
|
2,0
|
2,0
|
|
|
6.5. Indirect Services VAT financing
|
Financing
for VAT paid for indirect material for 2 months
at 1 %
2 x 0.17 x 0.01 x 1
|
0,003
|
-
|
|
|
6.6.
Personnel Expenses :
Assumed as 4 % of turnover.
|
%
60, net personnel payment
4 x 0.60
|
2,4
|
2,4
|
|
|
Salaries are higher than wages then 40 % is
paid for withheld taxes.
|
40
% withheld tax not paid in İSBAŞ 4 x 0.40
|
1,6
|
-
|
|
|
Financing
|
|
|
|
|
7.7.
Financing
Assumed as 5 % of turnover 5 million $
|
Financing
of 5 million $
5 x 0.95
|
4,75
|
4,75
|
|
|
5
% of this is bank transaction tax.
|
No
bank transaction tax of 5% for financing cost
at İSBAŞ
%5 x 0.05
|
0,25
|
-
|
|
|
Financing
advantage of not paying withheld tax during
the year
|
5.68
$ x average 6 months x % 12=340.800 $
|
-
|
0,341
|
|
|
OTHER
|
|
3,125
|
|
|
|
TOTAL COST
|
|
|
|
|
8.
TOTAL COST
|
|
85,000
|
73,752
|
|
|
|
|
|
|
Corporate
Tax
|
|
|
|
|
9. Corporate Tax: 40% of 15% Gross Profit
is corporate tax.
|
40
% corporate tax of the 15 % gross profit15 m
$x 0.40
|
6,0
|
-
|
|
|
Fund
Revenue
|
|
|
|
|
10.
10. Fund Revenue:
A payment of 0,5% payable immediately on
the FOB values of goods leaving the zone and
the CIF values of goods entering the zone with
the exception of goods brought into the zone
from Turkey.
|
22
+ 100 x 0,005 = 0,61
|
-
|
0,61
|
|
|
Net
Profit
|
|
|
|
|
11.
Net Profit: Gross assumed 15% If 40 % is tax
then net profit is 15x0.60
|
15
% Gross profit x 60 %
|
9,00
|
23,354
|
|
|
|
|
100.00
|
100.00
|
|
