What are the current updates on tax regulations in Turkey? Our Senior Manager (CPA), Çağrı Özlü gives insights
The Law No 7338 related to making amendments on the Tax Procedural Law and Certain Laws (Law
No: 7338), which includes the significant amendments and regulations on the Income Tax, Corporate
Tax, Tax Procedural Law, VAT, Stamp Duty, Accommodation Tax, Special Consumption Tax and many
laws, was published in the Official Gazette dated 26.10.2021 and numbered 31640. We kindly submit
below the regulations and amendments made by the Law briefly for your information;
1- The commercial earnings of the taxpayers who are subject to the simple earnings basis were
exempted from the income tax in order to be applied to the earnings acquired from
01/01/2021.
2- The earnings acquired by those who create social contents and develop applications for
mobile devices were exempted from the income tax under certain conditions. Furthermore,
the same earnings were also exempted from the VAT.
3- The payments of the agricultural subsidies, which are made by the public institutions and
organizations to the farmers, were exempted from the income tax. The income tax which
had been deducted before 26/10/2021 shall be refunded to the farmers on condition that
application will be made.
4- The provisional tax return for the fourth period was excluded from the tax period in order to
be applied from the taxation period for 2022.
5- In the capital increases to be made from 26/10/2021, the rate of discount to be applied for
the part in which the cash brought from abroad is encountered with was determined as 75%
instead of 50%.
6- The part corresponding to 10% of the amount determined by applying the investment
contribution rate to the investment expenditure on the basis of investment incentive
certificate can be deducted from the other taxes accrued, excluding Special Consumption Tax
and Value Added Tax, on condition that it will be requested until the end of the second
month following the month in which the corporate tax return is required to be submitted.
7- The Ministry of Treasury and Finance was authorized for establishing a tax office in electronic
environment independently from the physical environment and for carrying out the
procedures electronically as of 26/10/2021.
8- A regulation was made for obtaining license for e-books and for declaring the approval of the
books as confirmation as of 26/10/2021.
9- Regulations were made with respect to granting additional period of 60 days in the case of
non-submission of the report in time with regard to the issues such as exemption, exception,
loss offsetting etc. which were conditioned to the submission of the attestation report issued
by certified public accounts as of 26/10/2021.
10- The scope of the application for the issuance of note of expenses was extended and the
obligation for the issuance of the document within 7 days from the date of delivery of goods
and performance of service was imposed as of 01/11/2021.
11- “Purchase Price” was added to the Tax Procedural Law as the valuation criteria as of
26/10/2021. Furthermore, the factors which must be included into the cost price and which
do not need to be included into the cost price were clarified.
12- The taxpayers were granted the rights of choices with respect to the application of
depreciation on a daily basis for the depreciable economic assets which will be newly
registered to the operating assets, and the determination of the depreciation period longer
so as not to exceed the double of the useful life period and fifty years as of 26/10/2021.
13- Provisions for doubtful trade receivables can be allocated without requiring any cause of
action and execution proceeding for the receivables at the amount of 3.000 TL, including the
bookkeeping taxpayers as per the operating account as of 26/10/2021.
14- It was clearly ensured that the period of 3 years included in the replacement fund
application will start from the year following the year in which the sale was performed as of
26/10/2021.
15- The irregularity and special irregularity fines exceeding 5.000 Turkish Liras were included into
the scope of conciliation and conciliation before assessment as of 26/10/2021.
16- “Mutual agreement procedure” was added to the Tax Procedural Law under the avoidance
of double taxation treaties as of 01/01/2022.
17- Quick depreciation can be applied to the new machinery and equipment acquired in order to
be used in the R&D, innovation and design activities from 26/10/2021 until 31/12/2023.
18- The effective date of the accommodation tax law was suspended to 01/01/2023.
19- Regulations were made for the capability of the income and corporate taxpayers, who are
subject to full obligation and who keep books on the basis of balance sheet principle, for the
revaluation of their depreciable economic assets included in their balance sheets and their
depreciations allocated over such assets and indicated in the liabilities of their balance sheets
under the terms set forth in the article as of 01/01/2022.
