Turkey: Law On Amendments To Certain Laws And Decree Laws

The Law No. 7491 titled "Law on Amendments to Certain Laws and Decree Laws" was published in the Official Gazette No. 32413 dated December 28, 2023.

Under the scope of Law No. 7491, the following adjustments have been made in tax implementations:

• The discount rate in service exports has been increased from 50% to 80%. (For Income Tax Payers)
• The discount rate applied to profits earned from service exports has been increased to 80%. (For Corporate Tax Payers)
• Regulations have been made to ensure that inflation adjustments in 2024 and 2025 will not affect the tax base in banks and financial institutions.
• Exemption conditions for revenues generated from certain services provided over the internet and similar electronic environments have been reorganized and expanded.
• The fixed expense application of 5% in exports has been abolished with the new regulation.
• Authorities related to withholding tax rates for multi-year construction and repair works entitlements and the rates applied under the Income Tax Law's temporary Article 67 have been expanded.
• A change was made to extend the duration of corporate tax exemption applied to exchange-protected accounts.
• With the related regulation, profits from intermediary export activities of manufacturing or supplying companies were also included in the scope of a 5-point corporate tax reduction.
• "The duration of VAT exemption applied to certain projects has been extended."
• The accelerated depreciation application period for certain assets of taxpayers with industrial registration certificates has been extended and reorganized to December 31, 2024.
• The taxation periods for athletes' salaries have been extended.
• The exemption for profits earned abroad has been regulated.
• The exemption period for gains arising from the disposal of product receipts issued under the Agricultural Products Licensed Warehousing Law has been reorganized and extended.
• It has been decided to charge a participation fee for inquiries made in the Revenue Administration's system.
• It has been regulated that the tax declared with the No. 2 VAT declaration, when paid, will be deductible from the No. 1 VAT declaration.
• The submission deadline for the No. 2 VAT declaration has been redefined. (The last day is the 21st of the following month)
• The payment date for the tax accrued in the No. 2 VAT declaration has been set as the 23rd of the month.
• The durations of VAT exemptions applied to certain projects and VAT exemptions for Transportation and Infrastructure Expenditures have been extended.
• The authority regarding the withholding tax rate for multi-year construction and repair works entitlements for limited liability corporate taxpayers has been expanded.

You can reach the relevant Official Gazette via that link (In Turkish).