Tax regulations in the package announced by the President to reduce the impacts of Covid-19 outbreak.

Turkish President Recep Tayyip Erdoğan announced that a set of resources totalling TL 100 billion has been put in place to reduce the impacts of Covid-19 outbreak with a package called "Economic Stability Shield", following the "Coronavirus Coordination Meeting" dated 18 March 2020. Amendments to the tax legislation within the text of the speech are as indicated below:

1. April, May and June payments of the withholding, VAT withholding and Social Security Institution (SSI) premiums will be postponed for 6 months for retail, shopping mall, iron-steel, automotive, logistics-transportation, cinema-theater, accommodation, food-beverage, textile-garment and event-organization sectors.

2. Accommodation tax will not be applied until November. (the relevant tax would start to apply as of 1 April. Rate; 1% until 31.12.2020,and then it is 2%.)

3. In domestic air transportation, the VAT rate will be reduced from 18 percent to 1 percent for 3 months.

4. The period of withholding tax return contaning the payments of deductions made at the source will be delayed for 3 months.

We will provide information as arrangements are made regarding the above issues.