Page 11 - EY-VG_Kasim_2019_v3

Vergide Gündem
English Translation

Tax package = New taxes and tax hikes

Amendments to the tax legislation proposed through the draft law submitted to
the Grand National Assembly of Turkey (TBMM) on 24 October 2019 and approved
in the Parliamentary Planning and Budget Comission on 1 November 2019 are
summed up as below:

• Introduction of a “digital services tax” to be paid through certain digital services,
especially all advertising services delivered in the digital environment is proposed.
The tax will be paid at a rate of 7.5% per month over the revenue obtained from
services that are included in the subject of the tax. Effective date: Beginning of
the third month following its publication.
• In cases where shuttle service is not provided to employees by employers, on the
condition that the daily transportation cost of the working days does not exceed
10 liras and the related payments are made in the form of public transportation
card or ticket, an income tax exemption is proposed to be introduced. Effective
date: Beginning of the month following its publication.

• Through the amendments to Article 40 of Income Tax Law containing the
deductible expenses in commercial income and Article 68 indicating the
deductible expenses for the self-employed, certain restrictions are imposed on
the costs of rented or purchased passenger cars. Shall be applied to income and
earnings for the taxation period starting from 01.01.2020.

• Submission of a tax return for the wages taxed by withholding, received from a
single employer, exceeding the amount (500.000 TL) in the 4th bracket of income
tax tariff is proposed. Shall be applied to the income acquired as of 01.01.2020.

• For income exceeding 500,000 TL (including wages), a new bracket is proposed
to be added to the income tax tariff. A tax at a rate of 40% will be paid on
these income. This provision applies to income other than wages received as of
01.01.2019. In terms of wage income obtained in 2019, the previous tariff will
be applied and the new tariff will be implemented starting from 2020 revenues.

• The rate for banking and insurance transaction tax (BSMV) applied as 1 per
thousand in foreign exchange transactions is proposed to be increased to 2 per
thousand. Effective: Date of publication.
• Through the new provision added to Expense Taxes Law, “an accommodation
tax” is introduced. Within the draft law, the rate of the tax was proposed as
2%. However, through the amendment made by the Planning and Budgetary
Comission, the tax is based on a fixed tariff in line with the type of the
accommodation facility and overnight per person (between TL 6 and TL 18).

• Regarding the implementation of invitation to disclosure, the duration of the
disclosure and the period of submitting tax returns and payment of those
invited to the disclosure are increased from 15 days to 30 days. Effective date:
01.01.2020.

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