The Law Regarding the Amendments of Certain Tax Laws and Other Laws was published on the Official Gazette dated 05.12.2017 (the “Amending Law”).
Amendments to Corporate Income Tax (Increase of corporate tax)
The corporate tax rate is increased to 22% from 20% for corporate earnings for the taxation periods of the companies for 2018, 2019 and 2020. In addition, the Council of Ministers is granted with the authority to decrease the corporate income tax rate from 22% to 20%. These provisions of the Amending Law shall enter into force on the publication date.
Amendments to Income of Immovable Property
The lump sum expense over the income of the immovable property is decreased from 25% to 15%.
This provision shall enter into force on 1 January 2018.
Amendments to the Value Added Tax
Parties who do not have a valid address, registered domicile, work place or legal center in Turkey and render any kind of services in electronic environment to real persons are obliged to declare and pay the V.A.T. of these services. The Ministry of Finance is authorized to determine the scope and principles of the services provided in the electronic environment.
This provision shall enter into force on the first day of the next month after its publication.
Amendments to the Procedural Law on Public Receivables No: 6183 (“Public Receivables Law”)
The seven (7) days period for filing a lawsuit against precautionary seizures, regulated in Article 15 of the Public Receivables Law is extended to fifteen (15) days.
The seven (7) days period provided for the debtors either to make payment or declare his personal assets is extended to fifteen (15) days in accordance with Article 55 of the Public Receivables Law. In addition to this, seven (7) days objection period provided for third parties, holding properties that belongs to the debtors, is extended to fifteen (15) days.
The seven (7) days period which is granted to the debtors before the foreclosure in accordance with the Article 56 of the Code is extended to 15 days. The seven (7) days period to file a lawsuit against payment orders and to declare his assets for the ones whose lawsuits have been rejected, is extended to fifteen (15) days in accordance with Article 58 /1 and 58/7. The seven (7) days period to impose imprisonment decision for the debtors who have not declared their assets is extended to fifteen (15) days in accordance with Article 60 of the Public Receivables Law.
These provisions of the Public Receivables Law shall enter into force on the 1 January 2018.
Amendments to Minimum Wage
Due to the fact that the minimum wage was lower than TL 1.404,06 in September, October, November and December 2017, a provisional clause was added to the Income Tax Law in order to compensate the decrease in the wages and complete it to 1.404,06 TL. This amendment enters into force on the day of publication.
Amendments to Tax Procedural Law regarding relevant addresses and notification
- The work place address declared by the taxpayer at the commencement date of business or at change of address,
- Addresses of workplace identified by a record by the authorized officers,
- The domicile address which is listed in the address registration system (MERNIS), established in accordance with the Civil Registration Services Law.
In the event the recipient is not found in the address or has quit the job, the notification shall be made to his domicile address for real persons. If the notification is going to be made to a legal entity, the notification shall be made to the domicile address of its legal representatives. Notifications to be made to associations that do not have legal entity shall be made to the domicile addresses of its managers or representatives. In case a real or legal person does not have a work place address, the notifications shall be directly made to their domicile address registered at address registration system. These provisions of the Amending Law shall enter into force on 1 January 2018.
Amendments to the Customs Duty For the products which are exempted from customs duty; the exemption shall be abolished and tax rate and percentage shall be determined as zero. In addition, the Council of Ministers shall have the power to increase the customs duty rates and taxes to up to 50%, to reduce them to zero or to increase the rates and ratios in the tariffs up to 50% listed in the Customs Tariff Schedule. These provisions of the Amending Law shall enter into force on the publication date.
Amendments to Money and Foreign Exchange Markets
The Central Bank of the Republic of Turkey is authorized to request information from real persons and legal entities in order to fulfill its duties. The cases in which such information is not provided at all or not given accurately or properly is regulated as criminal offenses.
The parties who committed these offenses shall be a subject to a fine between 1000 days up to 2000 days.
These provisions of the Amending Law shall enter into force on the publication date. Related Link: