The Law No. 7338 on the Amendment of Tax Procedural Law and Certain Other Laws Has Entered Into Force
The Law No. 7338 on the Amendment of Tax Procedural Law and Certain Other Laws (“Omnibus Law”) has entered into force through the publication in the Official Gazette dated 26/10/2021 and numbered 31640. Omnibus Law has introduced many significant amendments in tax laws, especially in the Corporate Tax Law, Income Tax Law and Tax Procedural Law.
Within this context, important amendments which is introduced by Omnibus Law can be summarized as follows under the main headings.
Removal of The Advanced Tax Return of The Last Quarter (4th period)
With respect to the current tax practice, income and corporate taxpayers pay their taxes upon their 3 month income. Taxpayers declare their advance taxes by submitting a declaration 4 times a year in quarterly periods. The advanced tax return for the last quarter has to be submitted until 17th of February.
Pursuant to the amendment by the Omnibus Law, the number of advanced tax returns has been reduced from four to three. Accordingly, taxpayers will submit a total of three advanced tax returns for the first nine months of the year, within quarterly period.
Payment Period of Annual Income Tax
Pursuant to the Omnibus Law, income tax accrued on the income declared with the annual income tax return is paid in two equal installments, in March and July.
Revaluation Practice
The Omnibus Law reintroduced the revaluation practice. Through the revaluation practice, the opportunity to re-evaluate the depreciable economic assets in their balance sheets and the depreciation shown in the liabilities of their balance sheets, in periods when the conditions for inflation adjustments are not met, provided depending on the taxpayers’ choice.
Tax Exemptions for Asset Management Companies
Through the amendment by the Omnibus Law, the five-year exemption from stamp tax, RUSF and dues that applied to the Asset Management Companies has been turned into a permanent exemption. Additionally, the banking and insurance transaction tax (“BITT”) exemption would no longer be available for those companies.
Tax Return Submissions Under Voluntary Disclosure
In the current practice, a taxpayer who is under a tax inspection cannot be file tax returns under voluntary disclosure for any type of tax. The Omnibus Law provides that even if the taxpayer is under tax inspection, a tax return under voluntary disclosure can be filed for the other types of taxes which are not subject to ongoing tax inspection.
Place of The Tax Inspection
Through the amendment by the Omnibus Law, the principle of making the tax inspection in the tax office has been adopted as a general rule. On the other hand, upon the request of the taxpayer and the tax responsible and if the workplace is available, the tax inspection can take place in the workplace of the taxpayer.
Deduction on Cash Capital Contribution
Through the Omnibus Law, the notional interest deduction rate that applied as 50% for the cash contributions has been increased to 75% for the part of the contributions made from abroad.
Tax Deduction for Compliant Taxpayers
To be qualified as a compliant taxpayers, one of the condition to be met is that the taxpayer should not be subjected to any additional tax assessment or additional ex officio tax assessment in the year when the deduction is calculated is and in the two preceding years.
The scope of the abovementioned condition has been narrowed down and restricted to the finalized tax assessments. In other words, taxpayers who are under assessments will also be benefitted from the deduction for their compliance until there is a finalized tax assessment against the taxpayer during the said period. Additionally, if the finalized assessments within the said period does not exceed 1% of the reduced amount limit, the said condition would be deemed as fulfilled.
Doubtful Trade Receivables
The Omnibus Law has determined the amount for doubtful trade receivables. Under the introduced amendment, unpaid receivables of the debtor despite the protests sent or demands made in writing, would be considered as doubtful trade receivable without conducting any litigation or execution procedure as long as those receivables do not surpass the TRY 3.000.
Integration of Irregularity/Special Irregularity Fines Within the Scope of the Tax Settlement Process
In accordance with the Omnibus Law, irregularity and special irregularity fines that exceed TRY 5.000 has been included into tax settlement process.
Accommodation Tax
The effective date of the accommodation tax has been changed from January 1, 2022 to January 1, 2023.
Income Tax Exemption for Social Media Content Producing and App Developing for Mobile Devices
The income of the social media content producers, coming from the activities of sharing content such as text, images, audio, video via social network providers and those who develop apps for mobile devices such as smart phones and tablets for the electronic application sharing and sales platforms will be exempted from the income tax. In order to benefit from the heresaid tax exemption, following conditions must be satisfied: (i) An account must be opened in a bank, established in Turkey and (ii) All revenues related to the activities listed above must be collected through this account. In addition, Turkish Banks, will withhold 15% of income tax as of the date of transfer upon the transferred amount of revenue.
You can access to the full text of the abovesaid Omnibus Law here (Turkish).
All rights of this article are reserved. This article may not be used, reproduced, copied, published, distributed, or otherwise disseminated without quotation or Erdem & Erdem Law Firm's written consent. Any content created without citing the resource or Erdem & Erdem Law Firm’s written consent is regularly tracked, and legal action will be taken in case of violation.
Other Contents
Through the Communiqué on the Amendment Regarding the Communiqué on the Procedures and Principles Regarding the Application of Article 376 of the Turkish Commercial Code No. 6102 (“Communiqué”) published in the Official Gazette dated October 31st, 2023 and No. 32355, essential amendments are...
Law No. 7456 on Additional Motor Vehicle Tax for Compensation of Economic Losses Caused by the Earthquake on 6/2/2023 and on Amendments to Certain Laws and Decree Law No. 375 (Law No. 7456) was published in the Official Gazette dated 15.07.2023 and No. 32249. The significant tax amendments included in the Law No. 7456 are...
The Presidential Decision dated 25.05.2023 and No. 7300 (Decision) has entered into force through publication in the Official Gazette dated 26.05.2023 and No. 32202. The Decision extended the deadlines for applications and first installment payments for debt restructuring, tax base increase and correction of...
Council of State Plenary Session of the Tax Law Chamber (Council of State TLC) decided that real estate taxpayers can file a lawsuit against the decisions of the appraisal commissions for the determination of minimum plot and land unit values until the last day of the year during which such decisions are taken...
The deadline for declaring the corporate tax return pertaining to FY 2022 is May 5, 2023. If there are any disputed taxes (e.g. additional -earthquake- tax) and a tax lawsuit is planned to be filed, we would like to remind that the tax return should be declared with a reservation...
Through the Law No. 7440 on Restructuring of Certain Receivables and Amending Certain Laws (Law No. 7440), published in the Official Gazette dated 12.03.2023 and No. 32130, procedures and principles regarding restructuring of the specified public receivables are regulated...
Through Law No. 7440 on Restructuring of Certain Receivables and Amendments to Certain Laws (Law No. 7440), published in the Official Gazette dated 12 March 2023 and No. 32130, amendments...
Through the Article 20 of Law No. 7440 on Restructuring of Some Receivables and Amending Some Laws (Law No. 7440), published in the Official Gazette dated 12 March 2023 and No. 32130, significant tax regulations regarding Debt Push-Down financing structure for merger transactions are introduced...
Through Article 10/27 of the Law No. 7440 on Restructuring of Certain Receivables and Amendments to Certain Laws (Law No. 7440) published in the Official Gazette dated 12 March 2023 and numbered 32130, an additional corporate (earthquake) tax at the rate of 10% is imposed against some corporate taxpayers...
Tax Procedure Law General Communiqué No. 546 (Communiqué) is published in the Official Gazette dated 18 January 2023 and No. 32077. Pursuant to the Communiqué, joint stock, limited liability company, unlimited liability company and limited partnership companies, cooperatives, Turkish branches of...
Through the promulgation of the Presidential Decision No. 6657 (Decision) on Resource Utilization Support Fund Deduction published in the Official Gazette dated January 10, 2023 and No. 32069, the Resource Utilization Support Fund rate for loans obtained by financial leasing companies from abroad is...
Through the promulgation of relevant general communiqués published in the Official Gazette dated 30 December 2022 and No. 32059 (2nd Repeated), certain tax limits to be applied during 2023 were determined. Accordingly, above-mentioned communiqués are...
The Presidential Decision numbered 6584 (Decision) on the entertainment tax rates regulated under Article 21 of the Law numbered 2464 on Municipal Revenues (Law) was published in the Official Gazette dated 21 December 2022 and numbered 32050...
Through the promulgation of the General Application Communiqué on Accommodation Tax (Communiqué), published in the Official Gazette dated 14 December 2022 and No. 32043, the procedures and principles for the implementation of the accommodation tax are regulated...
Through the administrative letter dated 30.11.2022 and No. E-85593407-156.06 published by the Customs General Directorate of the Trade Ministry regarding the import transactions in which an invoice is issued in foreign currency but the payment is made, the issues that cause hesitation in practice in terms of...
The Law on Amendments to the Tax Procedure Law and Certain Laws (Omnibus Law) entered into force through its publication in the Official Gazette dated 26.11.2022 and numbered 32025. The Omnibus Law amended the Law No. 4059 on Financial Stability and Certain Regulations (Financial Stability Law)...
Through the promulgation of President Decision No. 6417 (Decision) published in the Official Gazette dated November 24, 2022 and No. 32023, Special Consumption Tax (SCT) bases imposed on some private cars in the list (II) of the Special Consumption Tax Law No. 4760 have been changed...
Through the promulgation of Tax Procedural Code General Communiqué No.542 (Communiqué) published in the Official Gazette dated November 24, 2022 and No. 32023, the revaluation rate was determined as 122.93% for the year 2022...
Through the Expenditure Taxes General Communiqué Serial No. 92, ("Communiqué") published in the Official Gazette dated 11th October 2022 and no. 31980, banking and insurance transactions tax ("BITT") regulations are introduced regarding the taxation of the money received by insurance companies...
Through the promulgation of General Communiqué Serial No. 1 on Bringing Some Assets to the Economy (“Wealth Amnesty Communiqué”) which is published in the Official Gazette dated 9th August 2022 and no. 31918, the principles regarding the implementation of Wealth Amnesty which is...
Through Law No. 7417 on the Amendment to the Civil Servants Law, Certain Laws and Decree No. 375 ("Law No. 7417") published in the Official Gazette dated 5th July 2022 and No. 31887, a significant amendment is introduced for the application of interest rate deduction resulting from cash capital increase...
Through the Law No. 7417 on the Amendment to the Civil Servants Law, Certain Laws and Decree No. 375 ("Law No. 7417") which is published in the Official Gazette dated 5th July 2022 and No. 31887, significant amendments within Law No. 6183 on the Procedure for the Collection of Public Receivables...
Through the promulgation of the Law No. 7417 on the Amendment to the Civil Servants Law, Certain Laws and Decree No. 375 ("Law No. 7417") which is published in the Official Gazette dated 5th July 2022 and no. 31887, new Wealth Amnesty has been introduced.
Through the promulgation of the Regulation on Amendment to Regulation on the Procedures and Principles to be Applied in Tax Inspections published in the Official Gazette dated 28th June 2022 and no. 31880, significant amendments were made to the rules applied in tax inspections...
Through the promulgation of the President Decision No. 5752 published in the Official Gazette dated 28th June 2022 and no. 31880 (“Decision”), the period of the application of the low withholding rates on the interest obtained from Turkish Lira...
Through the promulgation of Law No. 7407 Amending the Banking Law, Some Laws and the Decree Law No. 655 (“Law No. 7407”), published in the Official Gazette dated 28th May 2022 and No. 31849, corporate tax exemption envisaged for incomes gained through currency protected TRY deposit accounts...
Through the promulgation of Law No. 7394 on the Amendments of Treasury-Owned Immovable Property Valuation and the Value Added Tax Law and on the Amendments of Certain Other Laws and Decrees (“Law No. 7394”), published in the Official Gazette...
Through the promulgation of Law No. 7352 Amending Tax Procedure Law and the Corporate Tax Law (“Law No. 7352”), published in the Official Gazette dated 29th January 2022...
Through the announcement of Circular No. VUK-138/2022-1 and dated 25 January 2022 (“Circular”) made by the Turkish Revenue Administration, it has been announced that the deadline for the submission of tax returns regarding...
Special Consumption Tax Rates and Base for Some Passenger Cars are Amended
VAT Rate Applicable to Education Services Provided in Private Schools and Universities is Reduced to 1%
Procedures and Principles Regarding the Tax Registration Cancellation of Taxpayers with High Risk to Forge Documents is Published
The New Wealth Amnesty entered into force through the Promulgation of the Law No. 7256
Provisions on Restructuring of Public Receivables of the Law No. 7256 entered into force
New Taxation Rules were introduced for Share Buybacks
Procedures and Principles regarding the Restructuring of Some Public Receivables were determined through the General Communiqué Serial No.1
Procedures and Principles regarding the Wealth Amnesty were determined
The Revaluation Rate was determined as 9,11 % for 2020
The Liability for Valuable House Tax will be effective as of 2021
Extension of the Period Designated for Submission of the First Country by Country Report
The Duration of VAT Rate Discounts on Certain Goods and Services is Extended
The Upper Limit of Stamp Tax to be Applied in 2021 was determined
Income Tax Tariffs Applicable on Remunerations and Income Other than Remunerations Acquired in 2021 were determined
The Communiqué on the Procedures and Principles Regarding Valuable House Tax was published
Special Communication Tax Rate was increased to 10%
VAT in Urban Transformation was reduced to 1%
SCT Rates on Electric Cars were increased
Tax Regulations Regarding Technopolis and R&D Centers
Withholding Rate of Long-term Construction and Repair Business was increased
Limitation on Financing Expense Deduction is Back
Special Communication Tax as Deductible Expense
Amendments to Regulation on the Conciliation Before Assessment
The Period of VAT Reduction on Overnight Services in Accommodation Facilities Has Been Extended for 1 Month
SCT Amounts Imposed on Some Fuel Products Have Been Increased
The Corporate Tax General Communiqué No. 18 is Published
The Duration of VAT Rate Discounts on Certain Goods and Services is Extended Until July 31st
The Period of VAT Reduction on Accommodation Services has been re-extended
Obligation of Ultimate Beneficial Owner Declaration for Corporate Taxpayers and Certain Persons
The Duration of VAT Rate Discounts on Certain Goods and Services is Extended Until 30 September 2021
The Period of Withholding Rate Reductions on Real Estate Rentals is Extended to September 30th
The Rate Regarding the Working Time Spent Outside the Region and Centers by Personnel Working in Technology Development Zones and R&D or Design Centers Has Been Amended
Tax Amendments Introduced Through the Law No. 7341