New tax proposal in Parliament! SCT system for vehicles is changing

With the new tax regulation proposal submitted to Parliament by the AKP, fundamental changes are being implemented, such as an SCT base update for fuel-powered and hybrid vehicles, VAT exemption for foundations, tax exemptions in free zones, digital combat against fake documents, and digitalization in tax auditing.

AKP Group Chairman Abdullah Güler announced that they have submitted the new tax regulation, which closely concerns the public, to the Speaker of the Grand National Assembly of Turkey (TBMM). The "Draft Law on Amendments to the Law on the Protection of the Value of Turkish Currency and Certain Other Laws" aims to prevent informal activities in the economy and make the tax system more equitable.

NEW SCT BASE COMING FOR VEHICLES

The SCT bases applied to passenger cars powered by fuel are changing completely. The current taxation model based on engine volume and tax base has remained insufficient in the face of rising vehicle prices.

With the new regulation:

SCT rates will be rearranged between 80 percent and 220 percent.

Bases suitable for market conditions will be determined, regardless of whether they are domestic or foreign, luxury or economic.

An SCT rate of 50 percent will be applied to off-road vehicles.

SCT CHANGE IN HYBRID AND FOSSIL-FUEL VEHICLES

New regulations are also coming for hybrid cars and some vehicles powered by fossil fuels. SCT rates will be determined in tiers based on engine cylinder volume and electric motor power. These rates will vary between 80 percent and 220 percent.

An important exemption is being introduced for the General Directorate of Foundations and established foundations. Real estate sales by these institutions will now be exempt from VAT. This step aims to alleviate the financial burden on institutions that provide social benefits.

VAT BASE EXPANDING IN FUEL AND NATURAL GAS

The SCT collected on fuel and natural gas imports will now be included in the VAT base. Thus, both tax loss will be prevented and transparency in imports will be ensured. The regulation will enter into force at the beginning of the month following its publication.

TAX ADVANTAGE IN FREE ZONES

When companies producing in free zones sell their products to the same zone or other free zones, these earnings will be exempt from income and corporate tax. Thus, the attractiveness of free zones will be increased.

NEW RULES IN FOREIGN EXCHANGE AND PRECIOUS STONE TRADE

The powers granted to the President will be redefined. In particular, it is envisaged to update the powers regarding foreign exchange transactions and the trade of precious metals and stones.

DIGITAL AUDITING STRENGTHENING

With the new draft law, the electronic inspection system is gaining legal status. Digitalization in tax auditing will be supported. Important steps are being taken regarding the fight against those who issue fake documents.

News Source: 12punto