Turkey Tax 2020


Tax Increases in Turkey Published In The Official Gazette Before 2020

The Turkish government Ministry of Finance new mega tax package has passed through the Parliament in Turkey, and already published in Official Gazette before the new year of 2020.

Upon the article “postponing the installation of filters in thermal power plants” was removed from the text of the regulation, which was sent back for discussion once again by President Recep Tayyip Erdogan, and the law was passed in Parliament. Under the law, any advertising services offered by digital service providers will be subject to a digital service tax.

The proceeds from the sale of any audio, visual or digital content in digital media and the services provided in digital media for the listening, watching, playing, recording or use of such content in digital media and the provision and operation of digital media where users can interact with each other will also be included in this tax.

The relevant accounting period from the previous fiscal period are subject to tax digital service revenue revenue for services across the globe from Turkey 20 million Turkish Lira or foreign currency from the Turkish lira equivalent of 750 million euros or the little ones will be exempt from this tax.


Buy Property In Turkey For 2020 Citizenship


Turkish Digital Services Tax Rate Will Be 7.5 Per Cent Up

There will be no deductions from the tax base under the name of expense, cost and tax. The digital service tax will not be shown separately in the invoice and invoice replacement documents. The tax rate will be 7.5 percent. The digital service tax will be calculated by applying the rate to the base, and no deductions will be made from the tax calculated in this way.  The president will be authorized to reduce this rate, either individually or together, to 1 percent, or to double it, depending on the types of services.


Turkey Holiday Hotel Extra Accommodation Tax

Hotels, motels, resorts, B & B, hotel, guest house, camping, mountain house, mountain house accommodation facilities such as overnight accommodation sold in conjunction with this service with given service offered by the facility within dining, activities, entertainment services, pool, gym, thermal fields and other similar services, such as the use of “Occupancy Tax”will be subject to what is. Providing overnight services in-house facilities such as wellness facilities and entertainment centers will not affect taxation.

Accommodation tax will be levied at a rate of 2 per cent on the cost of overnight service. By December 31, 2020, this rate will be applied at 1 percent.  The president will be empowered to increase this rate by one, to reduce it by half, to determine different rates within those limits.  Also student dormitories, hostels and camps to students Services, who are subject to mutual diplomatic missions of foreign states in Turkey, consulates and diplomatic members of their rights in accordance with international agreements with international organizations that are granted tax exemption for accommodation and services provided to members will be excluded from the tax.


Turkey Tax On Arbitrators

The amount of exemption in self-employed earnings granted to the owners of the works will be limited to 500 thousand lira. The regulation on the exemption of fees paid to sports referees from income tax is restricted to the referees governing amateur sports competitions, except those in the top leagues of basketball and volleyball.

According to the law, the activities of those who operate partially or completely in a variety of ways or leasing passenger cars used for this purpose, excluding acquired under lease contracts passenger cars passenger cars with part of the monthly rent for each of 5 thousand 500 pounds, much on the acquisition of special consumption tax (SCT) and Value Added Tax (VAT) the sum of 115 thousand pounds part of maximum bet can be taken into account as an expense.

The new tranche will be added to the income tax tariff and the top tranche will be increased from 35 per cent to 40 per cent. So those earning over 500 thousand pounds, 40 percent income tax will give.  In addition, excise duty and VAT excluding the first acquisition cost 135 thousand pounds in excess of the amount of depreciation allocated for cars that hit the maximum part of the expense can be written.

In cases where taxes are added to the cost or the passenger car is acquired in second hand, the amount of the passenger car subject to depreciation exceeding 250 thousand liras may be based on the maximum amount of the passenger car hitting this amount as an expense.  Up to 70 percent of the expenses related to passenger cars and 5 thousand 500 lira portion of the monthly rent for each of the passenger cars acquired through leasing and up to 115 thousand lira portion of the total of excise duty and VAT paid in the acquisition of passenger cars can be considered as expenses.


New Slice To Income Tax Tariff In Turkey

By law, the new Slice will be added to the income tax tariff and the top slice will be increased from 35 percent to 40 percent. Thus, 500 thousand pounds and those earning over 40 percent income tax will give.

The first 4 tranches of the current tariff will be protected and no changes will be made to the tax burdens of the groups that generate income up to 500 thousand pounds.  The income tax deduction rate, which is applied to athletes operating in the top leagues in sports that are subject to league procedure, will be increased from 15 per cent to 20 per cent.  For athletes who already have a contract, the income tax deduction will be applied as 15 percent until the end of this contract. As of October 31, 2019, the deduction will be applied at 20 percent on contracts.

The December December 31, 2019 to December 31, 2023 will extend the implementation of the income tax deduction rates for athletes from wages and fees counted. In case the total wage income of athletes exceeds 500 thousand pounds, these revenues will be reported with the annual declaration. In this case, the tax deductible will be required to be paid by the employer to the tax office in order to be deducted from the calculated income tax.

The current tariff will be applied to wage revenues for 2019 before the amendment, including income tax returns for this year to be issued in 2020. From January 1, 2020, the fee proceeds will be applied in the form of the new tariff, which is increased at the revaluation rate set for 2019, according to the provisions of the Tax Procedure Code.


Fighting The Forged Documents In Turkey

The taxpayers who are determined to have a high risk of issuing forged documents as a result of the analysis and evaluation studies conducted by the Ministry of Treasury and Finance regarding the tax compliance levels of the taxpayers taking into account such issues as the period of liability, the size of assets and equity, the amount of tax paid, the number of employees,

In addition, the amount of false or misleading documents used in a calendar year does not exceed 100 thousand pounds, or even if this amount exceeds 5 percent of the total purchases of goods and services in the related year, taxpayers who do not exceed 20 percent of the tax loss penalty will be deducted from the tax suffered.


Reduction In Turkish Tax Penalties

The discount rate will be set at 50 per cent, regardless of whether the tax loss penalties are committed for the first time. The settlement will allow for a 25 per cent reduction in the tax loss penalty to be paid.

In order for the administration and taxpayers to agree on taxes and penalties at every stage, to resolve tax disputes quickly and to reduce the workloads of the judicial authorities, the Tax Procedure Law will be amended with the title “abandoning the way of law”.  In this context, according to the decision given in case the taxpayers give up the way of Appeal or appeal at the trial stage, the tax or penalty in the case of a part or all of the administration to be waived and the dispute is not to be continued. If the taxes and penalties accrued in this way are paid with overdue interest, a further discount will be made.

The law in question 5 million pounds and above the value of the residential property qualified property will be subject to “valuable housing tax”. The value of residential properties subject to the tax value of the qualified residential property 5 million to 7.5 million lira 3 percent per thousand, 7.5 million lira to 10 million lira between 6 percent per thousand, 10 million lira in excess of those who will be taxed at 10 percent per thousand.


The Real Estate, Which Is Exempt From The Valuable Housing Tax, Is As Follows:

  • Residential property in which the general and special budget administrations, municipalities and universities have the right of owner or usufruct,
  • Turkish Housing qualified real estate owned by those who have only one residence, who certify that they have no income, whose income consists of the pension they receive from social security institutions,
  • Residence-qualified real estate used as an embassy and consulate, and the real estate in the residence of the envoys and their outbuildings (provided that they are mutual) and residence-qualified real estate belonging to the international organizations headquartered in Turkey and the representative offices of the international organizations in Turkey,
  • Newly built residential property which is registered to the enterprises of those whose main activity subject is building construction and which has not yet been put to the first sale, transfer and assignment.
  • Purchases of agricultural products to be made through imports related to agricultural products, to prevent extraordinary fluctuations in product prices due to insufficient production, to ensure price stability in products with the approval of the relevant minister and the TMO General Directorate by the appointment of the Board of Directors of the TMO Office (TMO), agricultural product purchases and related service purchases will be excluded


Learn more about Tax process to buy real estate in Turkey from the article here.

     
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