A- AMENDMENTS IN INCOME TAX LAW

1- Income Taxed in the Simple Method Are Exempted from Income Tax

With the relevant regulation, the earnings of taxpayers who fulfill the requirements stated in Articles 47 and 48 of the Law No. 193 and those who are taxed in the simple method and who are not among those who cannot benefit from the simple method listed in Article 51, are exempted from income tax. An annual statement will not be submitted for exempted earnings.

The earnings of the taxpayers who are taxed in the simple method in 2021 are exempted from income tax. The taxpayers concerned will not file an annual income tax declaration, and even if they file an annual tax return due to other incomes, they will not include these earnings in their declarations.

Even if the taxpayers who are subject to the simple procedure will not file a declaration, they will issue and receive documents in accordance with the provisions of the tax procedure law.

2- Contributions Provided from Public Institutions to Farmers are Exempted from Income Tax

With the recurrent Article 20/C added to the Income Tax Law, agricultural support payments provided from public institutions are exempted from income tax with the purpose of supporting farmers and the agricultural sector.

Property Tax

Property Tax is a kind of tax that needs to be paid by real estate owners such as land, estates, workplace, houses, etc. For the properties owned by deed; The person in whose name the deed has been issued is the owner of the property and thus liable to pay for real estate tax.

This tax is paid in two equal installments each year. The first payment is made in March, April, or May, and the second payment is within November.

The taxpayers shall deposit their payments to the Real Estate Tax Department of their registered municipality. During the payment, if the payment will be made through the physical application to the authority, the real estate deed is required to be presented. In case the said real estate is outside the city, the payments can be made at the PTT offices. These payments can also be made online via the e-municipality system (e-belediye).

In Official Gazette numbered 31631 and dated 17.10.2021, an important Presidential Decision has been published with regards to the employees working remotely under the scope of technology development and R&D regions.

With that decision, the income tax incentive time rate of 20% that is applied for the time performed outside of R&D and technology development regions will be applied as 50% until 31.12.2022 for the R&D and technology development employees.

Certain provisions have been amended in Income Tax General Communiqué No. 252 with Communiqué numbered 315, published in Official Gazette numbered 31620 and dated 06.10.2021.

New updates have been made in the Communiqué, which regulates the deduction of taxes applied through withholding from the income or corporate tax calculated on the annual return, and the refund of the remaining portion, deduction, and refund of temporary tax resulting from tax errors related to taxes.