Conditions for tax-free vehicle purchases announced! How long is the holding period?

The Communiqué on Amending the General Communiqué on the Implementation of the SCT (II) List, prepared by the Revenue Administration of the Ministry of Treasury and Finance, has been published in the Official Gazette and entered into force.

The communiqué regulates the implementation details in line with the previously published Presidential Decree regarding the SCT exemption.

DOMESTIC PRODUCTION RATIO INCREASED TO 40 PERCENT

Accordingly, the domestic production ratio for sales made to disabled citizens under the SCT exemption has been increased to 40 percent.

VEHICLE HOLDING PERIOD EXTENDED TO 10 YEARS

The holding period for vehicles purchased under this scope has been increased from 5 years to 10 years.

Whether or not this exemption has been utilized can be checked in the "Internet Tax Office-Inquiries-Disability Exemption Information" section on the Revenue Administration's website.

DOMESTIC CONTRIBUTION RATIO DECLARATIONS WILL BE TAKEN AS BASIS

In determining the domestic contribution ratio, the current motor vehicle domestic contribution ratio declarations published by the Ministry of Industry and Technology will be taken as the basis.

If it is determined that the domestic contribution ratio declared by the motor vehicle trader is below 40 percent, the tax loss, along with penalties and late interest, will be collected from the motor vehicle trader, except in cases where the disabled individual is held responsible.

WILL NOT PROVIDE THE RIGHT TO RE-UTILIZE

No changes were made regarding the sale or transfer of vehicles purchased under the exemption after 5 years from the date of initial acquisition. However, the sale or transfer of the initially acquired vehicle after 5 years will not grant the disabled individual the right to re-utilize the exemption until 10 years have passed from the date of the vehicle's initial acquisition.