Paid military service hike, tax on crypto transactions, and SCT on precious stones: Economic proposal passes committee

The "Draft Law on Amendments to Certain Laws," which envisions various changes in the field of economy, has been approved by the TBMM Planning and Budget Committee.

The proposal includes changes in many areas, from an increase in the paid military service fee to the introduction of taxes on crypto asset transactions, and from the application of SCT on precious stones to tax regulations for health institutions of foundation universities.

INCREASE IN PAID MILITARY SERVICE FEE

With the regulation, the fee to be collected from those applying for paid military service is being increased by 25 percent.

According to the amendment made to the Military Service Law, the number of individuals who wish to fulfill their military service through the paid option will be determined by the Ministry of National Defense in line with the needs of the Turkish Armed Forces.

The fee amount will be calculated by multiplying the indicator figure of 300,000 by the civil servant monthly coefficient on the payment day. Conscripts will be considered to have fulfilled their military service once they pay this amount in advance and complete one month of basic military training.

With this regulation, the paid military service fee is expected to rise from approximately 335,000 liras to 417,000 liras.

The funds collected under the scope of paid military service will be transferred to the central accounting unit of the Ministry of National Defense to be recorded as revenue in the general budget. The portion corresponding to the 240,000 indicator figure will be transferred to the general budget, and the remaining part will be transferred to the Defense Industry Support Fund.

TAX ON CRYPTO ASSET TRANSACTIONS

The proposal also includes a new tax regulation for crypto asset transactions.

Sales and transfer transactions carried out or mediated by crypto asset service providers will be subject to a crypto asset transaction tax.

The tax rate will be applied as 0.03 percent (3 per ten thousand) over the sales amount or the market value at the time of transfer.

SCT COMING FOR PRECIOUS STONES

With the amendment made to the Special Consumption Tax Law, some precious stones are being brought under the scope of taxation.

A 20 percent SCT is envisaged for natural or cultured pearls, diamonds, precious or semi-precious stones, their synthetic varieties, and items made from these stones.

The regulation in question will enter into force at the beginning of the second month following the publication of the law.

TAX ON HEALTH INSTITUTIONS OF FOUNDATION UNIVERSITIES

Within the scope of the proposal, health institutions operating under foundation universities are being removed from the scope of corporate tax exemption.

This regulation is planned to enter into force on January 1, 2027.

TAX RESTRICTION ON GAMES OF CHANCE ADVERTISEMENTS

With the amendment to be made to the Income Tax Law, advertisement and promotion expenses related to games of chance and betting will not be accepted as expenses in the determination of commercial profit.

AUTHORITY TO THE PRESIDENT IN UNEMPLOYMENT INSURANCE

According to the regulation to be made in the Unemployment Insurance Law, the President will be granted the authority to increase or decrease the 1 percent state share in the unemployment insurance premium by up to half.

EARLY PAYMENT DISCOUNT FOR EARTHQUAKE HOUSING

A discount will be applied if the debt amounts for housing and workplaces built after the Kahramanmaraş-centered earthquakes that occurred on February 6, 2023, are paid in advance by December 31, 2026.

Accordingly, a discount of 74 percent can be applied for the first residences and 48 percent for the first workplaces.

PUBLIC REAL ESTATE CAN BE INCLUDED IN PRIVATIZATION

The proposal also paves the way for the inclusion of real estate owned by some public institutions in the scope of privatization.

Accordingly, real estate belonging to universities, special-budget administrations, regulatory and supervisory institutions, and social security institutions can be sold by being included in the privatization program upon the request of the relevant administrations.

News Source: 12punto