New Amendments with the Omnibus Tax Law

A new Omnibus Law has been published with the Official Gazette numbered 31810 and dated 15.04.2022.

With that new Law, some amendments have been made on Income Tax Law, Corporate Tax Law and VAT.

You can review the details about these amendments on below:

1) The advertisement costs for the advertisements given to the companies under the scope of the advertisement ban, could not be used as a cost deduction on tax base calculations of income and corporate taxpayers.

2) The income of the doctors who carry out their activities independently and do not have a personal clinic or organization, would be deemed as a self-employed income and would be taxed as self-employed income.

3) The documents to be prepared and signed by the tax offices (accural receipts, noticements, deduction receipt, payment order, accounting transaction receipts) can be signed electronically by the Revenue Administration. And accordingly, these documents would be deemed as approved, signed and stampt.

4) Effective repentance clauses would be applied for the crimes located under the Article 359 of the Tax Procedure Law no: 213 (In Turkish).

5) During an investigation or presecution carried out for the crimes located under the Article 359, if it is realised that these crimes are done by another person or done with another person together, the report preparation process would not be required to file a public lawsuit against that person.

6) The related regulations stated above for the crimes under Article 359 can also be applied for the cases in the execution phase on court side.

7) Half of the revaluation rate on the recurreing Article 298 of the Tax Procedure Law would be taken into account for the calculations of the Travel Agencies Association annual fees.

8) With regards to the allowances of Mukhtars, if the net amount of this allowance is below the net minimum wage, the difference amount would be paid separately without any tax or other deductions.

9) The retention period of the delivery of residence or workplace for the Turkish citizens living abroad for more than six months with a work or residence permit, foreign individuals who are not resident in Türkiye, and institutions that do not have a legal and business center in Türkiye and do not earn income in Türkiye through a workplace or permanent establishment, has been increased from one year to three years.

10) The VAT refund regulations within the scope of investment incentive certificate under Temporary Article 37 has been extended to 31.12.2025. Also, the taxpayers who has this investment incentive certificate would also have an incentive with regards to the construction activities.

11) The activities with regards to the production of the electric motor vehicles would be exempt from VAT until 31.12.2023.

12) Immovable assets rented for use in commercial activities can be subject to sale, within the framework of the provisions of the State Tender Law No. 2886. Tenants who use the immovables on a contractual basis for at least three years on the date of the tender have the right to purchase with priority.

13) It has been clarified by the conclusion that real estate investment trusts, whose main field of activity is not portfolio management related to real estate, are not within the scope of exemption located under Law no: 5520 Article 5

14) With an additional statement to the Article 6 of Law no: 5520, it has been decided that the amounts transferred to cover the unrequited portion due to loss by the shareholders of the company, will not be taken into account in the determination of corporate income.

15) Per the Additional Article 4 of the Law on the Regulation of Broadcasts Made on the Internet and Combating Crimes Committed Through These Broadcasts, the expenses of corporate taxpayers who continue to advertise to those who have been banned from advertising, would not be considered as an expense in the calculation of the corporate tax base.

16) The corporate tax rate of banks, companies within the scope of Law No. 6361 (In Turkish), electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies has been determined as 25%.

You can reach the relevant via the link. (In Turkish).

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