Page 10 - EY-VG_Eylul_2023_v2

It will be possible to benefit from the application as of the
date of opening the aforementioned account in the bank. The
application is carried out in the form of a 15% withholding
tax on the amounts paid to the bank account. Therefore, an
important condition for those who want to benefit from the
exemption application will be to ensure that all earnings from
X are deposited into this bank account.

Another condition is that the amount valid for the last tax
bracket in the income tax tariff is not exceeded. This amount
is applied as TL 1,900,000 for 2023 calendar year (updated
annually based on inflation). Therefore, if the total income
from X (if there are incomes from other similar platforms,
they will need to be added as well) is higher than TL
1.900.000, the income generated will need to be declared
to the tax office through annual income tax return and pay
taxes in accordance to the income tax tariff. In cases where
this amount is not exceeded, the 15% withholding tax applied
by the bank will be the final taxation.

In practice, it seems possible for foreigners in Turkey to
benefit from this application as well, since it does not make
a difference whether applicants are tax residents or non-tax
residents.
It is also worth noting that users who will start generating
income from X will need to start paying social security
contributions if they are not enrolled into Turkish social
security scheme already.

As a result, it will be beneficial for individuals who started
/ will start to generate income from X, make their own
assesment regarding their position in terms of tax and social
security liabilities and if an exemption application is to be
made, it will be beneficial to do it as soon as possible.

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.
10 September 2023