The following changes will be made if the Bill referred to the Turkish Parliament on the 5th of July, 2023 is passed.
Corporate Tax Rate Rises from 20 Percent to 25 Percent
Starting from the tax returns to be filed as from the 1st of October, 2023, the Corporate Tax rate applicable to the period 2023 and thereafter shall be increased from 20% to 25%.[1]
Corporate Tax Rate Reduction for Exporters is to Rise
The corporate tax rate reduction for the exporter companies shall be increased from 1 point to 5 points only for their profits derived from exports.
Real-Estate Sales Profit Exemption is to be Abolished
For the real-estates to be included in the assets entry as from the law's entry force date, the VAT and Corporate Tax exemptions shall not apply.
If; however, the real-estates already included in the companies' assets entry prior to the Law's release date are sold thereafter, the real-estate sales profit exemption shall apply at a rate of 25% and VAT exemption shall be benefited.
Real-Estates will no longer fall within Partial Demerger Scope
In the partial demerger transactions to be done following the 01st of January, 2024, the corporate tax exemption for "real-estates" shall not apply. Therefore, such transactions shall not be exempted from VAT. In the case of demergers to be done until the 01st of January, 2024, the existing exemption practices shall continue.
Investment Fund Exemptions are to be Limited
As from the law's entry into force date, the profits, which will be derived from the funds other than venture capital investment funds and venture capital investment trusts, shall no longer fall within the exemption scope.
Ad-Hoc Supplementary Motor Vehicle Tax
A supplementary motor vehicle tax at an amount of the tax accrued in 2023 shall be levied on an ad-hoc basis for the vehicles that are registered by the law's entry into force date and the vehicles that will be registered for the first time as from law's entry into force date until the 31st of December, 2023.
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The supplementary motor vehicle tax shall be paid in 2 installments and the first installment shall be paid until the end of the month following the release date of the law, while the second installment until the end of November.
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For the vehicles to be registered for the first time until the 31st of December, 2023 as from the law's entry into force date, the supplementary motor vehicle tax shall be paid in advance.
Minimum Wage Support is to Extend
The minimum wage support, which has been granted annually since 2016 with an aim to reduce employers' workforce costs and to support the maintenance and rise in their exemptions, shall be extended until the end of 2023.
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[1] The corporate tax to be levied on the basis of the corporation profits of banks, companies falling within the scope of the Law 6361, electronic payment and monetary companies, licensed foreign currency institutions, asset management companies, capital market institutions, and insurance and reinsurance companies and pension companies shall be increased from 25% to 30%.