Increase in pension and hike in departure tax accepted by the Grand National Assembly of Turkey: Erdoğan granted authority to increase the tax by 3 times

With the bill signed by AKP deputies, the monthly and annual earnings of taxpayers will be determined by taking the average of the daily earnings detected as a result of inspections to be carried out at the taxpayer level.

The earnings determined in this way will be compared with the revenue amounts declared by the taxpayers for the period in which they operate, and if the difference found as a result of the comparison is more than 20 percent, taxpayers will be called for an explanation within the scope of the "invitation to explain" institution included in the Tax Procedure Law.

This provision will also be applied to corporate tax payers. The Ministry of Treasury and Finance will be authorized to determine the procedures and principles regarding the implementation of the article.

Tax deductions will be made on payments made to real persons regarding the supply of goods and services, taking into account the sector and activity issues determined by the President. Thus, tax security will be ensured and informality will decrease. The President will be authorized to determine rates separately or collectively for payments subject to tax withholding, based on activity subjects, payment types, sectors, business groups, and business types.

Taking into account the justifications of the Constitutional Court's cancellation decision, the proposal includes an amendment to the Tax Procedure Law. Accordingly, the upper limit of the collateral to be requested from taxpayers within the scope of collateral application has been determined as 10 percent of the total amount included in the issued fake documents, not to exceed 10 million liras.

The period for providing the requested collateral has been increased from 30 days to 60 days. It will be ensured that the collateral is returned to taxpayers who fulfill their obligations as previously agreed, and that the determined persons are not responsible for all tax debts that have occurred as of the date of the collateral request.

LOWEST PENSION IS 12 THOUSAND 500 LIRAS

With the new legal regulation, the minimum monthly payment amount, which is foreseen as 10 thousand liras on a file basis for those who are paid old-age, disability, and death pensions and their beneficiaries, will increase to 12 thousand 500 liras.

The practice regarding the payment of the 5-point social security support premium by the Treasury to employers, for those who were considered insured before September 8, 1999, and who were connected to an old-age or retirement pension for the first time, if they continue to work at the same workplace subject to the social security support premium, will end.

HIKE IN FOREIGN DEPARTURE TAX

With the regulation, the amount of the foreign departure tax in the law will be increased 10-fold, from 50 liras to 500 liras. With the regulation made in Law No. 5597 on Foreign Departure Tax, the President will be granted the authority to increase this amount by 3 times. Thus, the foreign departure tax will be able to rise up to 1500 TL.

SOMEONE ELSE'S IBAN AND POS DEVICE CANNOT BE USED

Except for cases permitted under the Bank Cards and Credit Cards Law, in cases where collections made using credit cards, bank cards, prepaid cards, QR codes, electronic wallets, and similar payment instruments are made through payment systems or devices not registered on behalf of the taxpayer themselves, 3 times the special irregularity penalty determined according to this provision will be applied separately for each transaction to the taxpayers who make the collection and to those who allow the use of these systems or devices registered in their own name. In this context, the total amount of special irregularity penalties to be imposed within a calendar year cannot exceed 20 million liras.

AMENDMENT MADE TO THE CORPORATE TAX LAW

With the new regulation, a domestic minimum corporate tax application has been introduced. The corporate tax to be paid by corporate tax payers will not be lower than 10 percent of the corporate earnings before deductions and exemptions. In this context, the branches, subsidiaries, and workplaces of multinational companies with an annual consolidated revenue exceeding 750 million in countries with low taxation will be subject to a minimum corporate tax rate of 15 percent.

Expenses related to earnings exempted from local and global minimum supplementary corporate tax or losses arising from activities within the scope of exemption cannot be deducted from non-exempt earnings.

The calculation of adjusted covered taxes, which are taken into account in determining the tax burden, is being enacted. In the country-based tax burden calculation of the multinational enterprise group, the calculated adjusted covered taxes of the affiliated enterprises located in that country will be taken into account.

30 PERCENT CORPORATE TAX WILL BE COLLECTED ON EARNINGS OF BUILD-OPERATE-TRANSFER PROJECTS

In addition, a tax security institution is being established for local and global minimum supplementary corporate tax. In this context, in financing provision transactions between affiliated enterprises within the same group, if the tax burden in the country where the borrowing affiliated enterprise is located is below the minimum corporate tax rate, and the tax burden in the country where the lending affiliated enterprise is located is above the minimum corporate tax rate, or if the tax burden calculated without taking into account interest income and expenses arising from intra-group financing is above the minimum corporate tax rate, the interest expense to be incurred by the borrowing affiliated enterprise and taken into account as an expense in determining the enterprise-based earnings will be limited to the amount that the lending affiliated enterprise takes into account as income.

A 30 percent corporate tax will be calculated on the earnings of institutions operating in projects carried out according to the Law on the Execution of Certain Investments and Services within the Framework of the Build-Operate-Transfer Model and projects carried out within the framework of the public-private partnership model according to the provisions of the Law on the Construction, Renewal and Service Procurement of Facilities by the Ministry of Health with the Public-Private Partnership Model and Amendments to Certain Laws and Decree Laws.

News Source: 12punto