With the Official Gazette dated the 31st of March 2023 and numbered 32149; Presidential Decision with the number 7015 has been published regarding the technology development and R&D regions under the emergency state.

With that decision, in the calculation of the income tax withholding incentive within the scope of the “Technology Development Zones Law” with the number 4691 and the “Supporting Research, Development, and Design Activities Law” with the number 5746, the income tax incentive rate that is applied for the time performed outside of R&D and technology development regions, will be applied as a hundred percent (for the whole working period) during the period of emergency state in the provinces were affected by the earthquake and declared as the state of emergency as of 6th February 2023.

The submission and payment deadline of 2022 Annual Income Tax Declaration, Ba-Bs Forms, e-Ledger signature and the upload date of Electronic Ledger Certificates have been postponed.

The Revenue Administration announced below:

General Communique No: 2 has been published on the Official Gazette (dated March 25, 2023 and numbered 32143) for the procedures and principles regarding the allowances provided to the earthquake victim employees.

1. What are the conditions for this exemption?

To be able to benefit from the exemption, this allowance;

• Should be made from February 6, 2023, to July 31, 2023 (including these dates),
• Should be made for the employees whose her/himself, spouse, child, or parents were affected by the earthquake.
• If it is cash, should not exceed 50,000 TRY in total.
• Should be made in addition to the current salary, premium, bonus, etc.

With the 27th paragraph of Article 10 of "The Law No. 7440 on the Restructuring of Certain Receivables and the Amendment of Certain Laws" published in the Official Gazette No. 32130 on March 12, 2023, additional tax liability has been imposed on corporate taxpayers.

• By being shown in the corporate tax return for 2022, the exemption and deduction amounts subject to deduction from corporate income pursuant to the Law No. 5520 and the regulations in other laws, and the tax base subject to reduced corporate tax within the scope of Article 32/A of the same Law, at a rate of 10% without being associated with the period's income,
• Also, an additional tax of 5% is calculated on the exempt income obtained from abroad and proven to carry a tax burden of at least 15%, with the exception regulated in subparagraph (a) of the first paragraph of Article 5 of the Law No. 5520. The first installment of the relevant tax will be paid within the payment period of the corporate tax, and the second installment will be paid in the fourth month following this period.