Temettu
Encyclopedia
Temettu was a tax introduced by the tanzimat
reforms in the later Ottoman Empire
.
Temettu was a tax on estimated (or presumed) business profits; it was mostly paid by merchants and artisans. An early form of temettu was attempted in 1839 (following a firman
of 1838 which announced sweeping tax reforms), but it was impractical without detailed information on business incomes. A comprehensive approach to taxation of business profits in the Ottoman empire
- rather than the traditional method of taxing specific outputs or assets - only really became possible after a thorough cadastral survey carried out in 1858-1860, which collected detailed information on the status of businesses throughout the empire. Immediately after this, a new temettu was set at 3%; in 1878 it was raised to 4% of estimated profit.
In 1886 the temettu was increased to 5%, and it was also applied to wages and salaries; for most of the Ottoman empire, this was the first real income tax
, in the modern sense.
Temettu was paid annually; it was a graduated tax, with the rich liable to pay considerably more than the poor. By 1910, temettu revenue had reached 1 million livres per year; the same as tobacco
and petrol duties, and less than the revenue from customs
.
Farmers who did not participate in commerce were eventually exempted from temettu, after early attempts at taxation - they paid other farm taxes instead, such as a new form of âşâr
which was imposed as part of the same tax reforms. Foreigners were initially exempted, but there were later attempts to extract temettu payments from foreigners resident in the Ottoman empire. This extension of temettu was abolished in 1906 but later reinstated at the start of World War I
and extended to foreigners in any profession.
Tanzimat
The Tanzimât , meaning reorganization of the Ottoman Empire, was a period of reformation that began in 1839 and ended with the First Constitutional Era in 1876. The Tanzimât reform era was characterized by various attempts to modernize the Ottoman Empire, to secure its territorial integrity against...
reforms in the later Ottoman Empire
Ottoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...
.
Temettu was a tax on estimated (or presumed) business profits; it was mostly paid by merchants and artisans. An early form of temettu was attempted in 1839 (following a firman
Firman
A firman is a royal mandate or decree issued by a sovereign in certain historical Islamic states, including the Ottoman Empire, Mughal Empire, State of Hyderabad, and Iran under Shah Mohammed Reza Pahlavi. The word firman comes from the meaning "decree" or "order"...
of 1838 which announced sweeping tax reforms), but it was impractical without detailed information on business incomes. A comprehensive approach to taxation of business profits in the Ottoman empire
Ottoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...
- rather than the traditional method of taxing specific outputs or assets - only really became possible after a thorough cadastral survey carried out in 1858-1860, which collected detailed information on the status of businesses throughout the empire. Immediately after this, a new temettu was set at 3%; in 1878 it was raised to 4% of estimated profit.
In 1886 the temettu was increased to 5%, and it was also applied to wages and salaries; for most of the Ottoman empire, this was the first real income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
, in the modern sense.
Temettu was paid annually; it was a graduated tax, with the rich liable to pay considerably more than the poor. By 1910, temettu revenue had reached 1 million livres per year; the same as tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
and petrol duties, and less than the revenue from customs
Gümrük resmi
The gümrük resmi was a customs charge, or tax, in the Ottoman Empire.Customs duties were typically paid on the value of commodities; in the Ottoman empire, just as in modern commerce, this would fuel disagreements over the "value" of the goods being traded.As with other Ottoman taxes, collection...
.
Farmers who did not participate in commerce were eventually exempted from temettu, after early attempts at taxation - they paid other farm taxes instead, such as a new form of âşâr
Asar
Asar may refer to:*A 19th century transcription of the name Osiris, an Ancient Egyptian deity of the underworld and resurrection*Asar, a horse-god revered in ancient Palmyra, possibly of Arabian origin...
which was imposed as part of the same tax reforms. Foreigners were initially exempted, but there were later attempts to extract temettu payments from foreigners resident in the Ottoman empire. This extension of temettu was abolished in 1906 but later reinstated at the start of World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
and extended to foreigners in any profession.