NEW CUSTOMS LAW AND NEW TAXATION ON GOODS EXCEEDING 30 EUROS

NEW CUSTOMS LAW AND NEW TAXATION ON GOODS EXCEEDING 30 EUROS

The Law on the Amendment of Tax Laws and  Certain Laws and the Decree Law No. 375  (“Law”) published in the Official Gazette dated  August 2, 2024 and numbered 32620 regulates  many issues related to tax law, particularly  Corporate Tax, VAT and Income Tax. Some of  these regulations are analyzed below:  

– According to the first article of the Law,  the phrase “in all kinds of payments,” in  Article 22/A (“Transactions that cannot  be made before the public receivable is  paid and the responsibility of those who  make transactions”) of the Law on the  Procedure for Collection of Public  Receivables (date: 21/7/1953, No. 6183)  has been amended as “in all kinds of  payments (including payments to be  made upon court decisions and  payment or execution orders of  enforcement offices)”. With this  amendment, the scope of the payments  has been expanded.  

– According to the second article of the  Law, the title of the third section of the  second part of the Income Tax Law (date:  31/12/1960, No. 193) titled “Exemptions  and Exceptions” has been regulated as  “Other Exemptions and Exceptions”,  and Article 17 that was abolished before  has been rearranged with its title. 

According to the article titled “Wage exemption  in benefits provided to service personnel by  giving share certificates”, according to the  criteria determined by the Ministry of Industry and  Technology, income tax exemption will be  provided at different rates according to the period  of holding the share certificates, which are given  free of charge or at a discount to the personnel  working in enterprises that have the qualifications  of technoentrepreneurship companies and are  considered as to be wages.  

The rates are arranged in a way to vary according  to the period of time the shares are held by the  employees. If the shares are disposed of within  three full years, the entire tax will be collected  from the employer, 75 per cent of the tax will be  collected from the employer if the shares are  disposed of between four and six years, and 25 per  cent of the tax will be collected from the employer  if the shares are disposed of between seven and  twelve years, and no tax loss penalty will be  applied. 

The limitation period for the taxes not levied starts  from the beginning of the calendar year following  the date of disposal of the shares. The article also  states that the Ministry of Treasury and Finance  shall be authorised for the implementation of the  article. 

– With Article 9 of the Law a new section  to Article 344 of Law No. 213 has been  added and the scope of tax loss penalty  has been extended. 

Causing to tax loss by carrying out commercial,  agricultural, or professional activities without  the knowledge of tax office, even though a tax  liability must be established according to tax  laws, without complying this obligation is added  to situations that mentioned in Article 344. 

In this case, tax loss penalties that would be  applied according to the section one, two and  three will be applied by increasing 50%. Same  increase will be applied to tax loss penalties because of assessments that will be informed later  regarding same tax type and term. 

– Provisional article 35 is added to Law  No.213 by Article 16 of Law No.7524 

“PROVISIONAL ARTICLE 35- If tax settlement  is requested however the date of settlement have  not been fixed before the date that this article  would be in force or the date fixed but meeting for  settlement did not made yet or the date postponed  because of various reasons or settlement request  period did not passed regarding taxes or  penalties article 112, article 376, additional  clause 1, 7, 8, 9 and 11 will be applied with their  previous versions that before the amendment.” 

According to this article, if settlement is  requested before this and not started yet to this  settlement, the versions of the aforementioned  articles before the amendment will be applied. 

With Article 51 of furtherly mentioned law, some  various changes are made in Article 1 of Law  No.5597 “Law On Departure Fee and  Amendment Law On Various Laws”: 

i. Departure fee that in the first section of  Article 1, is increased from 50 Turkish  liras to 500 Turkish liras. 

ii. The following sentence is added to  continuation of the first sentence of  Article 1 section one:  

“This fee would be applied by amount  that fixed with revaluation rate pursuant  to the repeated Article 298 of the Tax  Procedure Law dated 4/1/1961 number  213 every year regarding to former year.  For the fees assesed in this way, fractions  up to 10 Turkish liras will not be  considered. However, in departures that  made until the end of the tenth day of  January of the year that applying fixed  fee to this extent, the payments that made  according to valid amount from the end of previous year difference is not topped up. 

iii. Lastly, “this amount” phrase is changed  to “fee that situated in this clause or fixed  amount of this fee by applying  revaluation rate”. According to this  amendment President will be authorized  to change fee that situated in this clause  or new fixed amount of this fee by  applying revaluation rate up to three  times or reduce it to zero. 

– Article 3 of the Law amended the  abrogated Article 69 of Law No. 193: 

This provision, which was introduced for those  who are income taxpayers due to their  commercial or professional activities, allows  these taxpayers to determine their revenues at  specific times of the year and to be invited to  explain if there is a difference exceeding 20%  between this determination and their  declarations, and to levy tax on the determined  revenue if the explanation is not sufficient. This  regulation will also apply to corporate taxpayers.  Details regarding the amount of revenue are  provided in subparagraphs a, b and c of paragraph  3 of the Article.  

– Article 23 of the Law added the  Proivisional Article 45 to Law No. 3065: 

Within the scope of the protocol signed between  the public administrations with general budget  and foreign state institutions and organizations in  the places considered as disaster areas, upon the  earthquake disaster that occurred on February 6,  2023, as of 1/1/2024 Deliveries and services  made to foreign state institutions and  organizations regarding the construction of  immovable properties such as housing, workplaces, schools, student dormitories,  hospitals, places of worship, culture and art  centers, libraries to be donated to public  administrations with general budget, and the  delivery of residences to be donated to foreign  state institutions and organizations within the  scope of the protocol signed between public  administrations with general budget and foreign  state institutions and organizations in these places  are exempted from VAT until 31/12/2025. 

– With Article 24 of the Law, the first sentence of  subparagraph (a) of the second paragraph of the  provisional Article 3 of the Free Zones Law No.  3218, which starts with the phrase “The earnings  of the taxpayers engaged in production activities  in free zones from the sale of the products  manufactured in these zones”, has been amended  as “The earnings of the taxpayers engaged in  production activities in free zones from the sale  of the products manufactured in these zones  abroad”. Accordingly: 

Prior to Law No. 7524, all of the profits derived  from production activities in free zones were  within the scope of corporate tax exemption,  regardless of whether the products were sold  domestically or internationally. With Article 24,  solely the earnings derived from the sales made  abroad by the corporates operating in free zones  will be within the scope of corporate tax  exemption; the exemption provided for domestic  sales has been abrogated. 

– With Article 37 of the Law; an additional  article has been added to the Law No.  5520 to follow its article 36 regulating  “Minimum Top-up Corporate Income  Tax and Provisional Articles”: 

According to this provision; the earnings of the  subsidiaries of multinational business groups  whose annual consolidated revenue in the  consolidated financial statements of their 

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