With 2151 numbered Decision on Hidden Income Distribution by Transfer Pricing, there have been amendments made in the General Communique Regarding Hidden Income Distribution by Transfer Pricing published on the Official Gazette No. 31231, dated 01.09.2020.

Amendments are as follows.

• In order to be deemed to be within the scope of hidden income distribution, situations where a related person bond is formed through partnership, it is required to have at least 10% partnership, voting or dividend right,
• The term of advance pricing agreement is to be a maximum of 5 years,
• In cases of renewing advance pricing agreement is required, an application shall be made at least 6 months prior to agreement’s expiration date,
• Changing the expression "transaction-based profit methods" into "transactional profit methods",
• With the precondition of fulfilling documentation liabilities within the scope of Transfer Pricing, loss of tax penalty will be implemented with 50% discount for the tax loss occurred due to hidden income distribution,
• Preparation of general report, annual transfer report and country-specific report,

Due to Covid-19, cash wage support and termination ban have been extended by 2 months until 17 November 2020.

The decision regarding the extension was published by the President with decision report dated 4 Sep 2020 No: 31234.

You can reach the related decision via that link.

With the Presidential Decree No. 2913 dated 29/08/2020, which was published on the Official Gazette No. 31229 on 30/8/2020, Decision on Determination of Value Added Tax to be applied to Goods and Services have been amended.

Within the scope of the related decision; VAT rates of education services provided by foundation universities and academies, private educational institutions, institutions which conduct remote education, private education courses, vocational education and rehabilitation centers, social activity centers and similar educational institutions have been decreased from 8% to 1% between the dates of 01 September 2020 – 30 June 2021 (related dates are included).

With the SSI Circular numbered 2020/35 and dated 27/08/2020, the details of the premium support arranged for the workplaces that ended short-term employment or cash wage support applications and returned to their normal working hours, have been published.

Important points regarding that circular are as follows:

1) Who can benefit from premium support?

Within the scope of the temporary 23rd & 24th articles of the Law No 4447, private sector workplaces that have applied for short-term employmen or cash wage support applications before 1/7/2020 will be able to benefit from them.

If there are employees who continue to receive short-time / cash wage support at a workplace along with the employees whose short-term employmen or cash wage support applications are ended, premium support can be applied to those employees whose short-term / cash wage support applications are ended at the same workplace.

Again, as stated, this support will be applicable in private sector workplaces and monthly Withholding and Premium Service Declarations should be submitted by selecting the law number 07252.