Customs, Indirect Taxes

Tax Exemption on Fast Cargo Imports has been Removed

With the decision dated 15.05.2019, an amendment has been made on the general decision that regulate the application of Customs Law. With this amendment, the customs tax exemption provided for personal goods that do not have any commercial purpose brought by fast cargo deliveries under the value of 22 EUR limit, has been removed.

The exemption that was provided in the same article for books and similar print materials brought by fast cargo deliveries that value under 150 EUR remains the same.

Accordingly, goods brought by fast cargo deliveries under the value of 22 EUR will be subject to taxation same with the ones that value under 1.500 EUR. The rates are;

  • 18% for the goods brought from EU countries,
  • 20% for the goods brought from other destinations,
  • 0% for books and similar print materials,
  • Additional 20% on the above if the goods are subject to Special Consumption Tax (Excise Duty)

General Communiqué on the Recovery of Some Assets to the Economy (no.1) has been published

General Communiqué on the Recovery of Some Assets to the Economy (no.1) has been published on today’s (02.08.2019) official gazette.

The communiqué in generel defines the principles on;

a) Recovering the money, gold, foreign exchange, securities and other capital market instruments of real and legal persons to the national economy by bringing them to the country,

b) Registering in the statutory books of the money, gold, foreign exchange, securities and other capital market instruments and immovables that are in the country, but not included in the statutory books of income and corporate taxpayers by declaring to the tax office.

You may contact us if you have any queries on the above.

Social Security Premium, Tax Returns, Withholding Tax

Merged “Withholding Tax” and “Social Security Premium” Returns

With the communiqué dated 18/02/2017, two separate returns (“Withholding Tax” and “Social Security Premium”) that are submitted to two separate authorities (“Revenue Administration” and “Social Security Institution”) including information about employees are decided to be merged.

This merge, requires an update in the electronic return submission system, therefore the regulation has initiated as pilot for taxpayers in Kırşehir as of 1/6/2017 and for taxpayers is Amasya, Bartın and Çankırı as of 1/1/2018. For all the remaining, the beginning date was set as 1/7/2018 but this date was updated to 1/10/2018 and then to 1/7/2019. Finally, it is again set to 1/1/2020 for all remainin taxpayers.

Indirect Taxes, Mobile Phones Registration Fee

Registration fee collected on mobile phones brought by travellers

Other than commercial imports, people who travel abroad and return to Turkey can bring mobile phones for their personal use together with them. These mobile phones shall be registered in Turkey by these travellers to activate the phones’ usage in Turkey. Previously, the registration fee was 618,60 TL.

With the Presidential Decree No. 1314 published in the Official Gazette dated 19/7/2019 no 30836, the registration fee collected for the mobile phones brought from abroad together with travellers was increased to 1500 TL.

This amendment enters into force on 20 July 2019, as it is the date following the publication of the Decision.

Corporate Income Tax, Corporate Tax, Excise Duty, Excise Tax, Incentives, Special Consumption Tax (SCT)

Omnibus Law 7186 made Amendments on Several Tax Laws

“Law on Amendment of Income Tax Law and Certain Laws” no.7186 was published in the Official Gazette dated 19 July 2019 no.30836. This omnibus law contains of 35 articles. The very high-level summary of the amendments brought by the law are;

  • Capital repatriation: Initially, the Law 7143 was introduced on 18.05.2019, this new regulation reduces the tax rate for the repatriated captial from 2% to 1% and makes some amendments in the scope of capital
  • Recording credit repayments -that are not collected or not expected to be- as bad debt: Banks will be able to regard not collected or collecteble credit repayments as bad debt and write these off in the tax calculations.
  • Special provisions used by factoring firms to be regarded as expense in the tax calculation.
  • Tax exemption on financial restructuring
  • Supporting the production/use of electric motor vehicles by tax arrangements: Presidency has been authorised to allow companies that conduct the R&D in Turkey for the development of electric motors to be used in the new generation zero emission vehicles to deduct investment contribution gained by investment incentives over the Special Consumption Tax. (Normally, investment contribution is only deductible by the corporate tax)
  • Increase in departure to abroad fees: 15TL fee that was paid by Turkish citizens that depart abroad is increased to 50TL
  • Revenue based taxation: President has been authorised to determine the businesses that will be able to prefer income taxation over the business revenue.
Excise Duty, Excise Tax, Special Consumption Tax (SCT)

Excise Duty (SCT) Adjustment on Fuel Products

Recent currency fluctuations in Turkish Lira required authorities to take some urgent actions to moderate its effect on the local market. One of these regulations was the Cabinet Decree dated May 14, 2018 no. 2018/11818 that allowed Excise Duty (Special Consumption Tax [SCT]) amount of certain fuel products to be rearranged in line with the f/x changes to stabilize the price of fuels in the market.

In principle, the decree allowed Ministry of Finance to rearrange Excise Duty on Gasoil, Diesel and LPG products and their variances when the Turkish Lira currency is devalued over other currencies. With the power of this decree, several decisions were taken by the ministry and published on its website that reduced (and increased afterwards when recovery realised) these amounts.

Now it seems that SCT amounts of Gasoil products (95 and 98 Octane) has returned to values before the decree was published but not yet for Diesel and LPG. Below is a graph that indicates the Excise Duty amount changes between the days before the decree and today.


If you have further queries on this issue, please feel free to contact us.

Excise Duty, Excise Tax, Special Consumption Tax (SCT), VAT

Turkey to reduce VAT and SCT (excise) taxes until year end

Authorities in Turkey continue to take preventive measures against the shrinkage risk of the consumption in the local market.

Here is the summary of today’s Presidential Decree about reduction in some taxes in Turkey;

1- Deadline of reduced title fee (3% instead of 4%) is extended to year end.

2- Deadline of reduced VAT rate on house sales (8% instead of 18%) is extended to year end.

3- VAT rate on the sale of furnitures is reduced to 8% until the year end.

4- VAT rate on the sale of commercial vehicles is reduced to 1% until the year end.

5- Reduced Special Consumption Tax (SCT) on passenger cars (highest reduction is 15% for vehicles that SCT base is <120.000TL & engine is <1.600cm3) until the year end.

6- Special Consumption Tax (SCT) on home appliances (white goods) reduced to 0% until the year end.

These changes are of course very good developments on the consumer side. But still, there will be discussions on the days switching from full taxable days to tax reduced days (or vice versa) from corporates’ perspective. If you have further queries on this issue, please feel free to contact us.