August 2023
Financial Agenda
With the month of September, we are preparing to say farewell to summer. School bells will ring on Monday, September 11, as a sign of autumn's arrival, and the new academic year will begin with excitement.
In Türkiye, certain expenses are allowed to be deducted from personal income tax base on the return, both to encourage taxpayers to file tax return and to take into account certain social considerations, which means paying less tax in practice. Accordingly, education and health expenses made for the taxpayers themselves, their spouse, and minor children can be subject to deduction from personal income tax base, if it does not exceed 10% of the declared income, if it is made in Türkiye, and if it is certified by documents to be obtained from real or legal persons with personal or corporate income tax liability.
As true to its name, the expenses that can be subject to deduction must be for education and health purposes. Examples of educational expenses are the payments made to private educational institutions, kindergartens and nurseries for educational purposes, educational course fees, school service fees, book and stationery expenses, amounts paid if students stay in private dormitories and hostels. Fees paid for sports courses, toys, musical instruments, CDs for non- educational purposes, education expenses paid in foreign countries, and newspaper/magazine purchases are not within the scope.
Another important issue in September is the end of judicial recess. Pursuant to Law No. 6494 on Amending Certain Laws Regarding Judicial Services, which was published in Official Gazette dated July 7, 2013 and entered into force, the judicial recess, which started on July 20, 2023 in Judicial and Administrative Judiciary, ended on August 31, 2023. The new judicial year started on September 1. I hope the new judicial year will be beneficial for the entire judicial community and practitioners.
The last month of August was less hectic in terms of financial agenda compared to previous months. With Law no. 7456, additional motor vehicles tax (MTV) was introduced for one time only, equal to the accrued MTV for 2023 for the vehicles subject to tax according to tariffs numbered (I), (I/A), (II) and (IV) in articles 5, 6, and provisional article 8 of MTV Law no. 197 and registered in the relevant registry on the publication date of the said Law, and vehicles that will be recorded and registered for the first time in the relevant registries from the publication date of the same Law until 12/31/2023. Essentially, the first installment of additional MTV was supposed to be paid by the end of Thursday, August 31, 2023. However, Ministry of Treasury and Finance extended payment deadline of the first instalment of additional MTV until the end of Wednesday, September 6, 2023.
You can find the details of the announcements and bulletins we prepared regarding important financial developments in August in this issue.
With these feelings and thoughts, we hope that our September bulletin will be useful to all our readers and colleagues.
To view the full report, click here.
Originally published 14 September 2023
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
