The law amending the law on the procedure for the collection of public claims, as well as the law and certain laws with number 7316 (the "Law”) Was published in the Official Gazette with the number 31462 on April 22nd, 2021. Although seven different laws have been amended with the law, it appears that the main rule that is important to businesses is the amendment to the corporate income tax law (theCTL”).
Pursuant to provisional Article 13, which was incorporated into the CTL with Article 11 of the Act, the corporate tax rate currently at 20% has been increased to 25% for corporate profits in 2021 and to 23% for corporate profits in 2022. The rates mentioned are applied to the income of these companies for the accounting periods that begin in the respective year for the companies that are subject to the special accounting period.
As is well known, corporate income tax is paid four times in quarterly returns within a year. Calculations during these periods, known as temporary taxes, are cumulative. In this regard, the corporate income tax rate in the provisional tax return for the 1st provisional tax period of 2021 (January-February-March), which must be declared and paid by May 17, 2021, is calculated at 20%. In the upcoming provisional tax returns, in accordance with the new regulation introduced by the law, the rate of 25% will be applied in the returns of the second period to be submitted from July 1, 2021.
Although the temporary tax periods are set quarterly, the financial statements for 3, 6, 9 and 12 months are used as the basis for calculating the income to be declared and as the result of the first temporary tax period. The companies are also included in the calculation for the other periods taxed as 25% for the 2021 financial year.
In accordance with the relevant article of the law, corporate tax for 2022 is calculated at 23% for the entire year.