Notice for the Certain Legal Obligations in July 2021

Motor Vehicles Tax;

2^nd installment payment of the Motor Vehicles Tax for 2021 shall be made between July 1 and July 31.

If you have registered vehicles to your name or company, 2^nd installment payment of Motor Vehicles Tax is necessary to be done. Taxpayers can view and pay their taxes without logging into the Interactive Tax Office by submitting only the license plate and Turkish ID number.

The Motor Vehicles Tax can be paid;

• Over the directorate's website www.gib.gov.tr (Interactive Tax Office and GİB Mobile application) (https://ivd.gib.gov.tr/) between 02.00 a.m. and 11.45 p.m.;
• Via credit cards of the contracted banks
• Via bank cards or bank accounts of the contracted banks,
• Via credit cards, bank cards, and other payment methods of abroad banks,
• From the contracted banks':
• Branches,
• Alternative payment channels (Online Banking, Telephone Banking, Mobile Banking, etc.)
• From PTT Offices
• From Tax Offices

Annual Income Tax;

2^nd installment of the Annual Income Tax, which is generated in 2020, and submitted in March 2021 and the 1^st installment has been paid accordingly, shall be paid between 01.07.2021 and 31.07.2021.

Since 31.07.2021 is falling on the weekend, the due date for the payment is 02.08.2021.

Taxes could be paid;

• Over the directorate's website www.gib.gov.tr (Interactive Tax Office and GİB Mobile application) (https://ivd.gib.gov.tr/) between 02.00 a.m. and 11.45 p.m.:
• Via credit cards of the contracted banks,
• Via bank cards or bank accounts of the contracted banks,
• Via credit cards, bank cards, and other payment methods of abroad banks,
• From the contracted banks';
• Branches,
• Alternative payment channels (Online Banking, Telephone Banking, Mobile Banking, etc.),
• From PTT offices,
• From all tax offices.

Declaration of E-Documents in the Form BA BS;

According to the article has been added under the section of "1-CONTENT" with the General Communiqué No. 523 of Tax Procedural Law (VUK), which was published regarding the amendments in General Communiqué No. 396 of the Tax Procedural Law, taxpayers who are obligated to declare Form BA BS are no longer to declare the documents that are issued electronically in their Form BA BS starting from July 2021.

The relevant practice will be applicable for the July BA BS forms that will be submitted by the end of August.

Discounted VAT Rates in Some Service Sectors;

With Presidential Decree published on the Official Gazette numbered 31499 and dated 02.06.2021; the date of 31.05.2021 is amended as 31.07.2021 in the 6th provisional article of the Decision on Determination of Value Added Tax Rates to be Applied for Goods and Services.

Accordingly,

• VAT rates applicable to some Goods and Services have been decreased from 18% to 8%,
• VAT rates applicable to some Goods and Services have been decreased from 8% to 1% until 31.07.2021.

If there is no extension, discounted VAT rates in some service sectors will be no longer available after 31.07.2021, and the old VAT rates will be applicable going forward.

Discounted Withholding Rate Applied for Renting;

With Presidential Decree published on the Official Gazette numbered 31499 and dated 02.06.2021, it is decided to apply 10% withholding rate for rent payments of real estate until 31.07.2021.

If there is no extension, discounted withholding rate of 10% will expire on 31.07.2021, and the 20% withholding rate will be applicable going forward.

Discounted VAT Rates for Overnight services provided in Hotels, Holiday Resorts, and Similar Accommodation Facilities;

With Presidential Decree No. 4105, the 1% discounted VAT rate to be applied for overnight services provided in hotels, holiday resorts, has been extended until 31.07.2021.

If there is no extension, discounted VAT rates of 1% in overnight services will be no longer available after 31.07.2021, and the old VAT rates will be applicable going forward.

You can reach the Circular regarding MVT via the link. (in Turkish)

You can reach the Circular regarding Income Tax via the link. (in Turkish)

You may find our previously published articles regarding the discounted VAT rates via the link.

You may find our previously published articles regarding the discounted withholding rate applied for renting via the link.

Should you have any queries or need further details, please contact your customer representative.