Tax Amendments Introduced Through the Law No. 7341
Essential tax amendments are introduced through the promulgation of the Law No. 7341 Amending the Law on the Establishment and Duties of the Turkish Exporters Assembly and the Exporters’ Association and Certain law (“The Law no.7341” or “The Law”), published in the Official Gazette dated 6th November 2021 and no. 31651. The referred amendments may be summarized as follows:
1. Tax Exemptions Envisaged for Institutions Established for Providing Guarantees in Relation to Export Credits:
The tax advantages introduced for referred institutions through the Law No. 7341 are as follows:
- Corporate tax exemption is introduced for the abovementioned institutions.
- Stamp tax exemption will be applied for the papers prepared in relation to loan guarantees.
- Providing loan guarantees are exempted from VAT.
- Transactions regarding the loan procurement, their guarantees and repayments have been exempted from fees (excluding the judgement fees).
- No withholding tax would be applied as per Article 67 of the Income Tax Law.
Tax Exemptions Envisaged for Operator of Newly Established Free Trade Zone:
Income gained by operators of free trade zones, newly established after the date of 6 November 2021, generated from the free trade zone operating activities will be exempted from corporate tax. The application period of the corporate tax exemption should not exceed 30 years and will be limited to the period specified in the first operating license to be issued by the Ministry of Commerce.
The Law entered into force on 6 November 2021, the date of publication.
You may find the full text of the Regulation here (Turkish).
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Special Consumption Tax Rates and Base for Some Passenger Cars are Amended
VAT Rate Applicable to Education Services Provided in Private Schools and Universities is Reduced to 1%
Procedures and Principles Regarding the Tax Registration Cancellation of Taxpayers with High Risk to Forge Documents is Published
The New Wealth Amnesty entered into force through the Promulgation of the Law No. 7256
Provisions on Restructuring of Public Receivables of the Law No. 7256 entered into force
New Taxation Rules were introduced for Share Buybacks
Procedures and Principles regarding the Restructuring of Some Public Receivables were determined through the General Communiqué Serial No.1
Procedures and Principles regarding the Wealth Amnesty were determined
The Revaluation Rate was determined as 9,11 % for 2020
The Liability for Valuable House Tax will be effective as of 2021
Extension of the Period Designated for Submission of the First Country by Country Report
The Duration of VAT Rate Discounts on Certain Goods and Services is Extended
The Upper Limit of Stamp Tax to be Applied in 2021 was determined
Income Tax Tariffs Applicable on Remunerations and Income Other than Remunerations Acquired in 2021 were determined
The Communiqué on the Procedures and Principles Regarding Valuable House Tax was published
Special Communication Tax Rate was increased to 10%
VAT in Urban Transformation was reduced to 1%
SCT Rates on Electric Cars were increased
Tax Regulations Regarding Technopolis and R&D Centers
Withholding Rate of Long-term Construction and Repair Business was increased
Limitation on Financing Expense Deduction is Back
Special Communication Tax as Deductible Expense
Amendments to Regulation on the Conciliation Before Assessment
The Period of VAT Reduction on Overnight Services in Accommodation Facilities Has Been Extended for 1 Month
SCT Amounts Imposed on Some Fuel Products Have Been Increased
The Corporate Tax General Communiqué No. 18 is Published
The Duration of VAT Rate Discounts on Certain Goods and Services is Extended Until July 31st
The Period of VAT Reduction on Accommodation Services has been re-extended
Obligation of Ultimate Beneficial Owner Declaration for Corporate Taxpayers and Certain Persons
The Duration of VAT Rate Discounts on Certain Goods and Services is Extended Until 30 September 2021
The Period of Withholding Rate Reductions on Real Estate Rentals is Extended to September 30th
The Rate Regarding the Working Time Spent Outside the Region and Centers by Personnel Working in Technology Development Zones and R&D or Design Centers Has Been Amended
The Law No. 7338 on the Amendment of Tax Procedural Law and Certain Other Laws Has Entered Into Force