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You can find articles by Mazars in Turkey experts on current legal adaptations and the applicable law here.
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Significant changes in VAT rates
Adjustments have been made in VAT rates in order to reduce the effect of price increases experienced in the last months. Still, it would be useful to publish a communiqué to address the reservations regarding the definition of certain products subject to low rates.
Tax exemption on currency-protected deposits
The communiqué published by the Ministry interprets the corporate tax exemption for currency protected deposits with the Law No. 7352 in a very narrow perspective and the exemption granted by the law has more or less been abolished.
Inflation adjustment postponed to the end of 2023
Inflation adjustment will not be applied in 2021, 2022 or the 1st, 2nd and 3rd provisional tax periods of 2023. In addition, the inflation adjustment will be applied for the financial statements dated 31.12.2023 regardless of whether the conditions are met, but will not be affiliated with the taxable income for the 2023 accounting period, and will be shown in the previous years' profits or losses accounts.
Minimum wage tax exemption
As per the Law No. 7349 on the Amendment of Some Laws and the Income Tax Law, the wages corresponding to the remaining amount after deducting the worker's social security institution premium and unemployment insurance premium from the monthly gross amount of the minimum wage valid in the month the payment is made, are exempted from income tax.
Problem regarding communiqué no. 35 in VAT withholding
With the VAT communiqué serial no. 35, the VAT declared and accrued by the buyer must be paid by the buyer in order for it to be returned to the seller. The execution of this practice was stopped by the Council of State but it was subsequently overturned on procedural grounds and was put into practice again.
New tax reliefs offered to taxpayers
The Law No. 7338 Amending the Tax Procedure Law and Certain Laws enacted by The Grand National Assembly of Turkey (GNAT) encompasses important regulations
Business – It’s personal. And so is sustainability.
Every business is different, whether that’s in size, ambition, or even geography. But all of them have a connected topic that needs to be addressed: sustainability.
Key transfer pricing considerations for startups
Beneficial owner disclosure
Firms operating in Turkey are now required to disclose their “Beneficial Owner” information. The regulation is in parallel with the global practice.
Readjustment of economic assets of shareholders registered as current assets
Estates registered as current assets and other economic assets of corporate taxpayers subject to depreciation can be readjusted by 31.12.2021 within the scope of an arrangement in law, also named tax amnesty, on restructuring certain receivables.