“Communique on Amendment to VAT General Application Communique (Serial no 23)” published in the Official Gazette No. 30687, dated 15.02.2019, and “Communique on Amendment to VAT General Application Communique (Serial no 24)” published in the Official Gazette No. 30692, dated 20.02.2019, entered into force upon having been approved by the Ministry of Treasury and Finance.

The amendments introduced by the communiques no. 23 and 24 are as follows:

7162 numbered “the Law on Amending the Income Tax Law and Other Laws” (the “Law”) is published on 30.01.2019 dated and 30671 numbered Official Gazette. The Law has made some crucial amendments on the Income Tax Law, the Value Added Tax Law, the Corporate Tax Law and the Municipality Incomes Tax Law.

Some important amendments brought with the Law as follows:

1. AMENDMENTS ON THE INCOME TAX LAW (“ITL”)

TRADESMEN EXEMPTED FROM THE TAX

Art. 1 of the Law has made an addition to the ITL. With this addition, the ones that sell online some products produced at home without establishing a workplace shall be in the scope of tradesmen exemption for the income tax. (Effective Date: 30.01.2019)

“Law No. 7161 on Introduction of Amendments to Tax Laws and Certain Laws and Decree Laws” (the “Law”) was published in the Official Gazette no 30659, dated 18.01.2019. The Omnibus Law made some crucial amendments such as addition of the currency difference to VAT base, having the “difference ratio according to 12 months average of consumer price index” as a basis for determining the leasing increase price, 70% tax exemption in salary payment of private aviation personnel.

Some amendments introduced by the Law are as below:

Vehicle owners are obliged to pay the Motor Vehicle Tax (“MTV”) twice a year. Airplanes, helicopters and motor vessels are also subject to this taxation in addition to regular vehicles.

The first instalment payment of 2019 for Motor Vehicle Tax shall be made between the dates of 01.01.2019 and 31.01.2019. The tax calculation is accrued automatically according to your vehicle’s type.