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addition or withdrawn from the entity for five years. However, • Goods deliveries and services related to construction works
we would like to remind you that income arising from sales within the scope of the certificate will be exempt from
of fund shares held by taxpayers, carrying out security value added tax until 31 December 2025 for taxpayers
trade, with this purpose, are not covered by the exemption in holding investment incentive certificates for manufacturing
question. industry and tourism. (Effective Date: May 1, 2022)
• Engineering services provided to taxpayers who
As a consequence, this permanent incentive introduced manufacture electric motor vehicles, developed as a result
for liraization can be transformed to a good tax planning of R&D activities in Turkey, for the development of these
instrument through the establishment of closed-end mutual vehicles and within the scope of investment incentive
funds by entities. Yet, decrease in tax income due to such certificate, will be exempted from VAT until 31 December
establishment can be compensated by the deepening to be 2023. (Effective Date: April 15, 2022)
generated in capital markets.
• Those with an upper limit of 3 years prison sentence in
Article 359 of the Tax Procedure Law are increased to
This is the summary of the article published in the 5 years while those having 5 years prison sentence are
Ekonomist magazine’s issue 2022/09, dated 01.05.2022. increased to 8 years. (Effective Date: April 15, 2022)
• In terms of the crimes listed in Article 359 of the TPL, it
is possible to apply effective penitence provisions and to
What is being amended by law reduce prison sentences at certain rates. (Effective Date:
numbered 7394 in terms of tax? April 15, 2022)
• A provision has been added to reduce the prison sentence
The regulations of the Law numbered 7394, published in the by half in cases where there is no penalty imposed
Official Gazette dated April 15, 2022, including amendments depending on the tax and tax base. (Effective Date: April
in the tax legislation are as follows: 15, 2022)
• It is also ensured to apply provisions of “successive offence”
• Advertisements given to those who are subject to an included under article 43 of Turkish Penal Code (Effective
advertising prohibition within the scope of additional article Date: April 15, 2022).
4 of Law numbered 5651 will not be considered as an
expense in the determination of commercial and corporate
income. (Effective date: April 15, 2022) This is the summary of the article published in the
Ekonomist magazine’s issue 2022/08, dated 17.04.2022.
• Physicians who carry out the practice of medicine by signing
a contract with one or more private health institutions will
be considered as self-employed. (Effective date: April 15,
2022)
• The corporate tax rate for banks, companies under the
Law numbered 6361, electronic payment and money
institutions, authorized foreign exchange institutions,
asset management companies, capital market institutions,
insurance and reinsurance companies and pension
companies will be applied as 25%, as of 2022 income.

• Pursuant to Article 376 of the Turkish Commercial
Code, it is ensured that the amounts transferred by the
shareholders of the company, whose capital is decided to
be completed, in an amount to cover the unrequited portion
due to loss, are not taken into account in the determination
of corporate income. (Effective Date: April 15, 2022)
• Income obtained by returning mutual fund participation
shares to the fund, which are included in the 3rd and 4th
sub-paragraphs of article 5/1-a of the Corporate Tax Law,
are included in the scope of corporate tax exemption.
(Effective date: April 15, 2022)
• In case the housing or workplaces delivered to foreigners as
exempt from VAT are disposed of within one year, the tax
not collected in related period is collected together with the
deferred interest. The above 1 year period is increased to 3
years. (Effective date: May 1, 2022)

Explanations in this article reflect the writer's personal view on the matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any responsibility
in respect of the information and explanations in the article. Please be advised to first receive professional assistance from the related experts before
initiating an application regarding a specific matter, since the legislation is changed frequently and is open to different interpretations.
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