Regulations Made in Tax Laws with Law No. 7417
Some regulations have been made on some tax laws with the Law No. 7417 (In Turkish) and Law no: 375 published in the Official Gazette dated 05.07.2022 and numbered 31887.
The summary of the regulations is as below:
1. The regulations on AATUHK No. 6183 (Law Regarding the Collection of Public Receivables)
With the amendment made in Law No. 6183 (In Turkish), the indefinite letters of guarantee, which are accepted as collateral and given by banks, would also need to be unconditional.
In addition to bank letters of guarantee, indefinite and unconditional bail bonds given by insurance companies will also be accepted as letters of guarantee.
The regulation entered into force on 05.07.2022.
2. Amendment on the Special Consumption Tax Law No. 4760 (In Turkish)
For the Special Consumption Tax of the electric vehicles; if the engine power does not exceed 160 KW and the SCT base does not exceed 700,000 TRY, the tax rate would be 10%. If the engine power exceeds 160 KW and the SCT tax base does not exceed 750,000 TRY, the tax rate would be 50%. For the others the rate would be 60%.
The regulation entered into force on 05.07.2022.
3. Amendments made on the Turkish Commercial Law No. 6102
The lawsuit filing duration has been increased to 30 days in case of a loss of books and documents.
The regulation entered into force on 05.07.2022.
4. Amendments on Corporate Tax Law no: 5520 (In Turkish)
- Cash Capital Increase Discount is limited to 5 accounting periods.
- Corporate Tax Rate Revised for Financial Institutions
- Tax Amnesty for Assets Arrangement Has Been Made
- There are two methods as informative notification and declaration.
- The information about the foreign assets would need to be given to the banks in Turkey to be able to benefit from these regulations. There is no need to submit tax return declaration to the tax office.
- For the local assets, a tax return would need to be submitted to the tax office.
- The deadline for these submissions is 31.03.2023.
- For the foreign assets, cash, gold, foreign currency, movable assets and other capital market instruments would be subject to these regulations.
- The immovable assets in foreign countries would not be subject to these regulations.
- There would be no need to be a corporate taxpayer or income taxpayer to declare the assets in Turkey.
- There would be no retrospective amendment made after the declaration deadline.
The right to benefit from the reduction indefinitely due to the cash capital increase has been limited to 5 accounting periods which starts with the decision regarding the capital increase or the accounting period in which the main contract was registered at the initial set up stage.
In case of a capital decrease in the relevant periods, the reduced capital amount would not be taken into account in the discount calculation.
In addition, capital increases prior to 05.07.2022 would also be limited to 5 years starting from 2022.
The regulation entered into force on 05.07.2022.
The corporate tax rate of the financial institutions (banks, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies) would be 25% on 2023 and the further periods.
The regulation entered into force on 05.07.2022.
5. Amendments For the Tax Procedure Law No. 213
- Authorization regulation has been made regarding the real beneficiary notification and an irregularity penalty regulation has been made in case of violation of these regulations.
- Amendments have been made on irregularity penalties
The irregularity penalty would be the 3 times of the amount located on Tax Procedure Law (In Turkish) article 355/1 (10,200 TRY for 2022).
The regulation entered into force on 01.08.2022.
In case of not giving or receiving invoices and similar documents and not complying with other form and procedure provisions, the irregularity penalties (minimum and maximum levels) have been increased.
| Amounts that were defined for 2022 with General Communique No.534 of Tax Procedure Law | Amounts that were defined as of 01.08.2022 with the Act No.7417 | |
|---|---|---|
| 1 - In case of not giving or receiving invoices, note of expenses, producer receipt, self-employment invoice, including the electronically issued documents, and presenting the different values on the documents other than the actual, and issuing the documents in paper format which were supposed to be issued electronically therefore considering these documents never issued in first place | 500 | 1,000 |
| - The total fine to be issued for each kind of document within the calendar year | 250,000 | 500,000 |
| 2 - In case of not issuing, keeping or using the retail sales receipt, cash register receipt, admission and passenger tickets, delivery note, transport waybill, passenger list, daily customer list and the documents which were obligated by Ministry of Treasury and Finance including the electronically issued documents, and presenting the different values on the documents other than the actual, misrepresentation of these documents, and issuing the documents in paper format which were supposed to be issued electronically therefore considering these documents never issued in first place | 500 | 1.000 |
| - The total fine to be issued for each detection of document in each kind within the calendar year | 25.000 | 50.000 |
| - The total fine to be issued for each kind of document within the calendar year | 250.000 | 500.000 |
The regulation entered into force on 01.08.2022.
You can reach the related Official Gazette via that link. (In Turkish)
Should you have any queries or need further details, please contact your customer representative.
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