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New Legislation About Tax Base Increase

30th October 2016

GOOD NEWS FROM TURKEY-NEW LEGISLATION ABOUT TAX BASE INCREASE

There has been a new legislation announced in Turkey. This law provides the following amenities to businesses .

1- Restructring debts
Your company can restructure unpaid past period tax and SSI payments up to 18 months and also benefit from getting a 50 % discount on unpaid past period tax and SSI penalties. Please note that all figures should occured before 30/06/2016.

2- Amnesty on Stocks
Although it is not included in the offical company books or take part in the business records but not physically being used for the company such as machinery ,fixtures and commerical goods etc. Your company can match the actual condition with the company’s offical records.

3- Amnesty on Due from Shareholders and Cash in Hand Accounts.
Although your company books show that you do have a certain amount of Due from Shareholders and/or Cash in Hand but company’s offical records are diffrent from these figures you can match the actual condition with the company’s offical book figures.
For example if you have 20.000 TL Cash in hand and 100.000 Cash in Hand account you can match and clear the difference.

4- Exemption on Tax Inspections
After the tax base increase according to the established minimum rates&amounts, there will be no retroactive tax inspections for the years 2011 to 2015 (including 2015)
Tax Base Increase Rates (for the corporation tax)
2011 Tax Base Increase Rate (min) : %35
2012 Tax Base Increase Rate (min) : %30
2013 Tax Base Increase Rate (min) : %25
2014 Tax Base Increase Rate (min) : %20
2015 Tax Base Increase Rate (min) : %15
The tax bases after the increase according to the ratios above, although shouldn’t be under the amounts written below
2011 Tax Base Increase Amount (min) 28.000 TL
2012 Tax Base Increase Amount (min) 29.650 TL
2013 Tax Base Increase Amount (min) 31.490 TL
2014 Tax Base Increase Amount (min) 33.470 TL
2015 Tax Base Increase Amount (min) 37.940 TL


5- Value Added Tax Increase
The new legislation also includes an exemption about a specific tax type; VAT
If you only prefer to be free from VAT, you should increase VAT Received Base.
After the base increase according to the established minimum rates&amounts, there will be no retroactive VAT inspections for the years 2011 to 2015 (including 2015)

2011 VAT Received Base Increase Rate (minimum) : % 3,5
2012 VAT Received Base Increase Rate (minimum) : % 3
2013 VAT Received Base Increase Rate (minimum) : % 2,5
2014 VAT Received Base Increase Rate (minimum) : %2
2015 VAT Received Base Increase Rate (minimum) : %1,5


Get in touch with YellAli if you would like to discuss further.



Written by OzbekCPA (Partner of YellAli)



Turkish Residence Permit

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