New withholding tax regulation in e-commerce

With the new regulation on the government's agenda, it is planned to apply a withholding tax deduction to sales made by all sole proprietorships, joint-stock companies, and limited liability companies through e-commerce platforms.

Although the withholding tax rate has not yet been determined, there is talk in the corridors that this rate could be around 15%. Industry representatives are expressing concerns that this rate will negatively affect e-commerce and increase consumer inflation.

THE RATE SHOULD NOT EXCEED 1%

TOBB E-commerce Council Member Cenk Çiğdemli made assessments regarding the regulation. Stating that a high withholding tax rate would harm the sector, Çiğdemli said, "This rate must definitely be lowered. Even though the paid withholding tax will be offset in income tax returns, it should not exceed 1%. Otherwise, sellers will be forced to increase product prices, and the path to affordable shopping will be blocked."

Stating that the withholding tax regulation has positive aspects alongside its negative effects, Çiğdemli said that sellers might choose to leave marketplaces and open their own websites. "It is not possible to build a brand in marketplaces. However, an opportunity for branding may arise through their own websites. In this way, sellers can reach the whole world and own their own customer data," he said.

News Source: 12punto