To print this article, all you need is to be registered or login on Mondaq.com.
Some regulations have been made on some tax laws with
the
Law No. 7417 (In Turkish) and Law no: 375 published in the
Official Gazette dated 05.07.2022 and numbered 31887.
The summary of the regulations is as below:
1. The regulations on AATUHK No. 6183 (Law Regarding the
Collection of Public Receivables)
With the amendment made in Law No.
6183 (In Turkish), the indefinite letters of guarantee,
which are accepted as collateral and given by banks, would also
need to be unconditional.
In addition to bank letters of guarantee, indefinite and
unconditional bail bonds given by insurance companies will also be
accepted as letters of guarantee.
The regulation entered into force on 05.07.2022.
2. Amendment
on the Special Consumption Tax Law No. 4760 (In
Turkish)
For the Special Consumption Tax of the electric vehicles; if the
engine power does not exceed 160 KW and the SCT base does not
exceed 700,000 TRY, the tax rate would be 10%. If the engine power
exceeds 160 KW and the SCT tax base does not exceed 750,000 TRY,
the tax rate would be 50%. For the others the rate would be
60%.
The regulation entered into force on 05.07.2022.
3. Amendments made on the Turkish Commercial Law No.
6102
The lawsuit filing duration has been increased to 30 days in
case of a loss of books and documents.
The regulation entered into force on 05.07.2022.
4. Amendments
on Corporate Tax Law no: 5520 (In Turkish)
- Cash Capital Increase Discount is limited to 5 accounting
periods.
The right to benefit from the reduction indefinitely due to the
cash capital increase has been limited to 5 accounting periods
which starts with the decision regarding the capital increase or
the accounting period in which the main contract was registered at
the initial set up stage.
In case of a capital decrease in the relevant periods, the
reduced capital amount would not be taken into account in the
discount calculation.
In addition, capital increases prior to 05.07.2022 would also be
limited to 5 years starting from 2022.
The regulation entered into force on 05.07.2022.
- Corporate Tax Rate Revised for Financial Institutions
The corporate tax rate of the financial institutions (banks,
electronic payment and money institutions, authorized foreign
exchange institutions, asset management companies, capital market
institutions, insurance and reinsurance companies and pension
companies) would be 25% on 2023 and the further periods.
- Tax Amnesty for Assets Arrangement Has Been Made
- There are two methods as informative notification and
declaration. - The information about the foreign assets would need to be given
to the banks in Turkey to be able to benefit from these
regulations. There is no need to submit tax return declaration to
the tax office. - For the local assets, a tax return would need to be submitted
to the tax office. - The deadline for these submissions
is 31.03.2023. - For the foreign assets, cash, gold, foreign currency, movable
assets and other capital market instruments would be subject to
these regulations. - The immovable assets in foreign countries would not be subject
to these regulations. - There would be no need to be a corporate taxpayer or income
taxpayer to declare the assets in Turkey. - There would be no retrospective amendment made after the
declaration deadline.
- There are two methods as informative notification and
The regulation entered into force on 05.07.2022.
5. Amendments For the Tax Procedure Law No.
213
- Authorization regulation has been made regarding the real
beneficiary notification and an irregularity penalty regulation has
been made in case of violation of these regulations.The irregularity penalty would be the 3 times of the amount located
on Tax
Procedure Law (In Turkish) article 355/1 (10,200 TRY for
2022).The regulation entered into force on 01.08.2022.
- Amendments have been made on irregularity penalties
In case of not giving or receiving invoices and similar documents
and not complying with other form and procedure provisions, the
irregularity penalties (minimum and maximum levels) have been
increased.
Amounts that were defined for 2022 with General Communique | Amounts that were defined as of 01.08.2022 with the Act | |
| 1 – In case of not giving or receiving invoices, note of expenses, producer receipt, self-employment invoice, including the electronically issued documents, and presenting the different values on the documents other than the actual, and issuing the documents in paper format which were supposed to be issued electronically therefore considering these documents never issued in first place | 500 | 1,000 |
| – The total fine to be issued for each kind of document within the calendar year | 250,000 | 500,000 |
| 2 – In case of not issuing, keeping or using the retail sales receipt, cash register receipt, admission and passenger tickets, delivery note, transport waybill, passenger list, daily customer list and the documents which were obligated by Ministry of Treasury and Finance including the electronically issued documents, and presenting the different values on the documents other than the actual, misrepresentation of these documents, and issuing the documents in paper format which were supposed to be issued electronically therefore considering these documents never issued in first place | 500 | 1.000 |
| – The total fine to be issued for each detection of document in each kind within the calendar year | 25.000 | 50.000 |
| – The total fine to be issued for each kind of document within the calendar year | 250.000 | 500.000 |
The regulation entered into force on 01.08.2022.
You can reach the related Official Gazette via that
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.
POPULAR ARTICLES ON: Tax from Turkey
Relocation To Cyprus
AGP Law Firm | A.G. Paphitis & Co. LLC
Headquartering your business and relocating to Cyprus is now easier than ever before. Due to numerous regulatory reforms taken place recently, foreign companies can now be established…
Tax Incentives For Relocation To Cyprus
Patrikios Pavlou & Associates
As of 10 May 2022, a new tax incentive scheme was approved by the Council of Ministers of the Republic of Cyprus, in an attempt to attract talented professionals from all over the world, in Cyprus.
Cost Of Living Crisis – Top Tax Saving Tips
Shepherd and Wedderburn LLP
With increases in the price of everyday essentials such as energy, fuel and food, many families are continuing to see the cost of living soar, resulting in an increased focus on expenditure and finances.
TL;DR
Law No. 7417 and Law No. 375 introduce several amendments to Turkish tax laws, effective from July 5, 2022. Key changes include new regulations on guarantees, special consumption tax rates for electric vehicles, and adjustments to corporate tax laws.
- Indefinite letters of guarantee must now be unconditional and accepted from banks and insurance companies. The special consumption tax for electric vehicles varies based on engine power and tax base, with rates of 10%, 50%, or 60%. Corporate tax rates for financial institutions are set at 25% for 2023 and beyond, while tax amnesty regulations for foreign assets have been established.
- To print this article, all you need is to be registered or login on Mondaq.com.
- Some regulations have been made on some tax laws with the Law No.
Law No. 7417 introduces several amendments to existing tax laws, including changes to collateral requirements for public receivables, special consumption tax rates for electric vehicles, and corporate tax regulations. These changes aim to streamline tax processes and update tax rates for various sectors.
The amendment specifies that electric vehicles with an engine power of up to 160 KW and a tax base not exceeding 700,000 TRY will be taxed at a rate of 10%. Vehicles exceeding these limits will face higher tax rates, with a maximum of 60% for others, effective from July 5, 2022.
The corporate tax rate for financial institutions, including banks and insurance companies, has been set at 25% for the year 2023 and beyond. This change aligns with the broader tax reform efforts outlined in Law No. 7417.
The tax amnesty allows individuals to declare foreign and local assets without the need for a tax return for foreign assets, simplifying the process for asset declaration. This initiative aims to encourage compliance and transparency in asset reporting by setting a submission deadline of March 31, 2023.
Law No. 7417 increases penalties for failing to issue or receive required documents, with fines significantly raised for various infractions. This aims to enhance compliance and accountability in tax documentation processes, effective from August 1, 2022.