New Amendments With The Omnibus Tax Legislation – Tax

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A new Omnibus Law has been published with the Official Gazette

numbered 31810 and dated 15.04.2022.

With that new Law, some amendments have been made on Income Tax

Law, Corporate Tax Law and VAT.

You can review the details about these amendments on below:

1) The advertisement costs for the

advertisements given to the companies under the scope of the

advertisement ban, could not be used as a cost deduction on tax

base calculations of income and corporate taxpayers.

2) The income of the doctors who carry out

their activities independently and do not have a personal clinic or

organization, would be deemed as a self-employed income and would

be taxed as self-employed income.

3) The documents to be prepared and signed

by the tax offices (accural receipts, noticements, deduction

receipt, payment order, accounting transaction receipts) can be

signed electronically by the Revenue

Administration. And accordingly, these documents would be

deemed as approved, signed and stampt.

4) Effective repentance clauses would be

applied for the crimes located under the Article 359 of the Tax Procedure Law no: 213 (In

Turkish).

5) During an investigation or presecution

carried out for the crimes located under the Article 359, if it is

realised that these crimes are done by another person or done with

another person together, the report preparation process would not

be required to file a public lawsuit against that person.

6) The related regulations stated above

for the crimes under Article 359 can also be applied for the cases

in the execution phase on court side.

7) Half of the revaluation rate on the

recurreing Article 298 of the Tax Procedure Law would be taken into

account for the calculations of the Travel Agencies Association

annual fees.

8) With regards to the allowances of

Mukhtars, if the net amount of this allowance is below the net

minimum wage, the difference amount would be paid separately

without any tax or other deductions.

9) The retention period of the delivery of

residence or workplace for the Turkish citizens living abroad for

more than six months with a work or residence permit, foreign

individuals who are not resident in Turkey, and institutions that

do not have a legal and business center in Turkey and do not earn

income in Turkey through a workplace or permanent establishment,

has been increased from one year to three years.

10) The VAT refund regulations within the

scope of investment incentive certificate under Temporary Article

37 has been extended to 31.12.2025. Also, the taxpayers who has

this investment incentive certificate would also have an incentive

with regards to the construction activities.

11) The activities with regards to the

production of the electric motor vehicles would be exempt from VAT

until 31.12.2023.

12) Immovable assets rented for use in

commercial activities can be subject to sale, within the framework

of the provisions of the State Tender Law No. 2886. Tenants who use

the immovables on a contractual basis for at least three years on

the date of the tender have the right to purchase with

priority.

13) It has been clarified by the

conclusion that real estate investment trusts, whose main field of

activity is not portfolio management related to real estate, are

not within the scope of exemption located under Law no: 5520

Article 5

14) With an additional statement to the

Article 6 of Law no: 5520, it has been decided that the amounts

transferred to cover the unrequited portion due to loss by the

shareholders of the company, will not be taken into account in the

determination of corporate income.

15) Per the Additional Article 4 of the

Law on the Regulation of Broadcasts Made on the Internet and

Combating Crimes Committed Through These Broadcasts, the expenses

of corporate taxpayers who continue to advertise to those who have

been banned from advertising, would not be considered as an expense

in the calculation of the corporate tax base.

16) The corporate tax rate of banks,

companies within the scope of Law No. 6361 (In Turkish), electronic

payment and money institutions, authorized foreign exchange

institutions, asset management companies, capital market

institutions, insurance and reinsurance companies and pension

companies has been determined as 25%.

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

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.