Regulations, including amendments in Tax Procedure and Corporate Tax Law, of Bill of Law presented to Grand National Assembly of Republic of Turkey on October 20.

The amendments, foreseen to be applied Law, terms of Tax Procedure and Corporate Tax Laws through the Bill of Law presented to Speaker’s Office of Turkish Parliament on October 20, 2022, are summarized below:

- The Ministry of Treasury and Finance is authorized to impose a guarantee obligation on taxpayers engaged in the "motor vehicle trade" defined in the Special Consumption Tax Law. The said guarantee can be up to 30 million TL, of the type listed in subparagraphs (1), (2) and (3) of paragraph 1 of Article 10 of the Law No. 6183.

Taxpayers who do not comply with this requirement will be subject to a special irregularity fine of 3 per thousand of the gross sales of the previous accounting period, not less than 34.000 TL (for the year 2022) and not more than 1.300.000 TL (for the year 2022). “

- 50% of income, obtained exclusively from sales of goods, purchased from overseas exclusively in scope of this activity, at overseas again without transferring the goods in question to Turkey or acting as an intermediary for such trading of goods at overseas, of the entities carrying our their activities at Istanbul Finance Center through receiving participation certificate according to provisions of Istanbul Finance Center Law, shall be deductible from corporate tax base.

In order to benefit from this discount; it is required that the annual corporate tax return for the accounting period in which the income is earned has been transferred to Turkey by the due date, and the seller and buyer of the goods related to the intermediary activity must not be in Turkey.

- Regulation above shall enter into force on the publication date of related Law.