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.