The following taxational arrangements have been made under the Presidential Decrees released in the Official Gazette dated 07.07.2023 and numbered 32241.
VAT Rate Changes
With effect from 10.07.2023:
- The VAT rate of 8% has been increased to 10%;
- The VAT rate of 18% has been increased to 20%;
- The VAT rate applicable to soap, shampoo, detergent, disinfectants, wet wipes (regardless of being saturated with soap, detergent, or solution), toilet paper, paper towel, paper tissue, and napkin has been increased from 8% to 20%; and
- The VAT rate of tooth brush and paste and dental floss shall be 10%.
50% Rise in Fixed Fees under the Tariffs falling within the scope of the Act of Fees
With effect from 08.07.2023:
- All fixed fees have been increased by 50% with the exception of "II-Driving License Fees" section of the tariff 9 under the Act of Fees 492;
- The minimum and maximum amounts of the fixed and relative fees have also been increased by 50%; and
- The license fee for the telephones brought by passengers from abroad has been increased from TRY 6,091.30 to TRY 20,000.00.
Banking and Insurance Transaction Tax Rises to 15%
For the consumer loans to be extended as from 07.07.2023, the banking and insurance transaction tax has been increased from 10% to 15%.
The Dividend Withholding of Full Taxpayer Equity Companies Listed in BIST is Set as 0%
Regarding the shares to be acquired as from 07.07.2023, the withholding of 0% shall be made over the dividend payout amounts for the own shares of full fledged taxpayer equity companies listed in BIST.
Support Period for Conversion to Turkish Lira Deposit and Participation Accounts is Extended
Support for Conversion to Turkish Lira Deposit and Participation Accounts has been extended from 31.03.2023 until 30.06.2023.[1]
Rise in Tax Rates Charged to the Proceeds of Gambling
With effect from 07.07.2023:
Tax rates for mutual betting based on sports competitions have ben increased to 10%, while having been increased to 14% in horse races and to 20% in other games of chance.
[1]"(1) The balances of foreign exchange deposit accounts in USD, Euro, and British pound and participation fund accounts in foreign exchange held at banks by the locally resident natural persons and by the locally resident legal persons, at any date between 31.12.2021 and 30.06.2023 in the latter case, shall be converted to Turkish Lira at the conversion rate upon the account holder's request."