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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