Legislation

06April2015

Anticipated Tax Benefits in Capital Increases

A new regulation¹ aimed at encouraging incorporations, limited liability and comandite companies² to invest in paid capital rather than foreign capital will enter into force on 01/07/2015 and allow:

A tax deduction³ for the paid portion of the increased capital to be calculated by the legally applicable interest rate.⁴ In the event where no profit is declared for the year in question, the tax deduction can be carried over to the subsequent tax year.

For companies who are considering a capital increase, it is recommended that they calculate the advantages to be gained with the new regulation.

Click here for the recent regulation⁵ (available only in Turkish) and contact your account representative for detailed information on the subject.

References:

www.tbmm.gov.tr

Law no : 6637 Date : 27/03/2015 Law amending certain laws and enactments.

The said regulation is currently submitted for approval to the Presidency, and upon approval, will go into effect on 01/07/2015.
Companies in finance, banking and insurance and state-controlled entities are out of scope of this regulation.
50% of the interest calculated at the related account period.
The latest interest rate with respect to commercial bank loans in TL currency as declared by the Cenral Bank of Türkiye.
See art. 8.

Author CottGroup Hukuk ve Mevzuat Ekibi, Category Taxation Law, Turkish Commercial Code

02April2015

Restructuring Period of General Health Insurance Premium Debts has been extended

(1) The application period stated in the temporary 53rd article of 31/5/2006 dated Social Secuirty and General Health Insurance Law number 5510, has been extended for 6 months as from the initial expiry date.

(2) The application period and the payment period for the 1st installment, which is stated in the temporary 60th article of the same law, has been extended for 6 months from the specified deadline in item (d) of the 1st clause of the respective article.

Category Taxation Law

31March2015

SSI Circular no. 2015/10 Concerning the Application for SSI Employer Incentives Retroactively

There are about ten different employer incentives in the social security and labour laws and regulations in Türkiye. These incentives serve the purpose of encouraging growth and sustainability of employment.

Employers are eligible to claim the incentive for a percentage of the 'employer' SSI premium portion. This portion is then subsequently paid by the Treasury.

In cases where the insured employee is eligible under multiple incentive laws and regulations, employers are only allowed to apply for one – not every applicable – incentive and indicate the applicable law in their monthly premium declarations.

Until recently, it was possible for employers to change the applicable incentives on a monthly basis and demand a retroactive application / calculation of the most recent incentive.

The recent SSI circular dated 18/03/2015 puts an end to retroactive application of SSI incentives in cases where an employer applies to change one SSI incentive in lieu of another.

Author CottGroup Hukuk ve Mevzuat Ekibi, Category Social Security Law and Legislation

24March2015

Calculation of Paid Premium Days

The Employer Practice Official SSI Communiqué specifies the default calculation of Premium days as 30 in a calendar month. Regardless of the actual days of the month, employers are required to declare worked days as 30. Effectively, when the total days of the month are 28, 29 or 31, worked days must be entered into the system as 30.

When an employee is transferred to a different workplace of the same employer, or the employer workplace is transferred to a different SSI center, the worked days declaration is to be made as 30 days provided that employment is uninterrupted. The 30 days rule tends to create confusion especially in the month of February. However, employers are advised to apply the rule in all cases where employment is uninterrupted and continuous.

Author CottGroup Hukuk ve Mevzuat Ekibi, Category Social Security Law and Legislation