Tax package enters into force: What regulations are in the new law?

The tax package was accepted by the General Assembly of the TBMM on July 28 and passed by Parliament. 

With the new law, amendments are being made to the Law on the Procedure for the Collection of Public Receivables in line with the cancellation decision of the Council of State. Accordingly, the Minister of Treasury and Finance is authorized to require a "no debt" certificate for payments to be made by public administrations subject to the Public Financial Management and Control Law and revolving fund enterprises affiliated with these administrations, based on court decisions and payment or enforcement orders from enforcement offices.

With the amendment made to the Income Tax Law, the portion of the fair market value of shares given free of charge or at a discount to employees by employers who qualify as technology startups according to the criteria determined by the Ministry of Industry and Technology, which is considered as wages, that does not exceed the total annual gross wage amount for that year, will be exempt from income tax.

If the shares acquired in this way by the employee are disposed of within 3 full years from the date of acquisition, the entire exempted tax; if disposed of within 4 to 6 years, 75 percent of the exempted tax; and if disposed of within 7 to 12 years, 25 percent of the exempted tax will be collected from the employer along with delay interest, without applying a tax loss penalty. The statute of limitations for taxes not collected on time due to this exemption will begin from the beginning of the calendar year following the date on which the shares given to the employee free of charge or at a discount are disposed of by the employee. The Ministry of Treasury and Finance will be authorized to determine the procedures and principles regarding the implementation of this provision.

TAXPAYERS WILL BE INVITED TO EXPLAIN IF A DIFFERENCE OF MORE THAN 20 PERCENT IS DETECTED

The monthly and annual revenue amounts of taxpayers will be determined by taking the average of the daily revenue amounts detected as a result of inspections to be carried out at the taxpayers' premises. The revenue amounts 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 invited to explain under the "invitation to explain institution" included in the Tax Procedure Law. This provision will also apply to corporate tax taxpayers. The Ministry of Treasury and Finance will be authorized to determine the procedures and principles regarding the implementation of the article. The provision will enter into force on January 1, 2025.

Payments made by intermediary service providers and electronic commerce intermediary service providers, which allow for the conclusion of contracts or placing orders for the supply of goods or services of electronic commerce service providers in electronic commerce marketplaces, to service providers and electronic commerce service providers operating according to the relevant provisions due to their activities are being brought under the scope of tax withholding.

It is envisaged that tax withholding will be made on payments made to real persons regarding the purchase of goods and services, taking into account the sectors and activity areas determined by the President. Thus, it is aimed to ensure tax security and reduce informality. The President is authorized to determine rates separately or collectively for payments subject to tax withholding, based on activity areas, payment types, sectors, business groups, and business types. This provision will enter into force on January 1, 2025.

With the law, an amendment is being made to the Tax Procedure Law, taking into account the justifications of the Constitutional Court's cancellation decision. Accordingly, the upper limit of the collateral to be requested from taxpayers within the scope of the collateral application is determined as 10 percent of the total amount included in the forged documents, not exceeding 10 million liras.

While the period for providing the requested collateral is increased from 30 days to 60 days, it is ensured that the collateral is returned to taxpayers who fulfill their obligations as prescribed, and that the designated persons are not responsible for all tax debts accrued as of the date of the collateral request.

SPECIAL IRREGULARITY PENALTIES

With the amendment made to the Tax Procedure Law, the scope of the authority regarding the obligation to document collections and payments is being expanded to combat the informal economy.

It is aimed for the Ministry of Treasury and Finance to ensure tax security in cases where all kinds of digital environments, including the internet, as well as electronic commerce, are used for economic and commercial purposes such as advertising, announcements, sales, and leasing. Accordingly, an obligation to provide notification regarding their economic and commercial activities is imposed on electronic commerce service providers, real and legal person intermediary service providers that provide an environment for the conduct of economic and commercial activities belonging to others, and electronic commerce intermediary service providers, as well as access, content, hosting, and social network providers. With the regulation, an obligation is imposed on intermediary service providers, electronic commerce intermediary service providers, access, hosting, or social network providers to obtain information subject to notification regarding the conduct of economic and commercial activities belonging to others, as well as information produced or provided by content providers.

According to the law, the stock exchange price can be used as a valuation measure in the valuation transactions of precious metals traded on the Precious Metals Exchange.

Precious metals such as gold, silver, platinum, and palladium will be valued at the stock exchange price. If there is no stock exchange price or if it is understood that the stock exchange price was formed collusively, the cost price will be taken as the basis for valuation instead of this price. With this provision, it will also be valid for receivables and debts with or without bonds related to precious metals. Receivables and debts based on deposit or loan agreements related to precious metals will be taken into account together with the interest calculated until the valuation day. Regarding the conversion of receivables and debts arising from deposit accounts and loan accounts based on precious metals to their value on the valuation day, the provisions of the Law titled "foreign currencies," "receivables," and "debts" will be valid as in the current practice.

The tax loss penalty will be increased by 50 percent in case of causing a tax loss by engaging in informal activities without establishing a tax liability, outside the knowledge of the tax office. The same increase provision will also apply to tax loss penalties to be imposed due to subsequent assessments regarding the same tax type and period.

According to the amendment made to the "special irregularities and penalties" provision in the Tax Procedure Law, an increasing penalty application is introduced to increase deterrence in case more than one special irregularity penalty is imposed within a calendar year in accordance with the relevant provisions. On the other hand, a new schedule containing penalties for taxpayer groups and related irregularities is also added to the provision.

In this context, it is envisaged that some penalties will be increased by the revaluation rate every year, and their amounts will be redetermined to increase deterrence. An increasing penalty application is introduced to increase deterrence in case more than one special irregularity penalty is imposed within a calendar year.

A 2-fold special irregularity penalty will be imposed on those who issue documents outside the scope of the Law; if this situation is reported by those who are obliged to receive the document or by the parties to the transaction subject to the document within 5 business days before it comes to the knowledge of the administration, a 6-fold special irregularity penalty will be imposed on those who issue documents outside the scope of the Law.

If those who are obliged to issue the documents listed in the law do not fulfill their obligations, and this situation is reported to the administration by the parties to the transaction subject to the document within 5 business days, no penalty will be imposed on these persons; a 3-fold special irregularity penalty will be applied to those who do not issue the documents, or issue them incompletely or misleadingly.

A schedule of penalty amounts regarding the envisaged increasing penalty application is added to the Law.

PENALTIES ARE REDETERMINED

With the regulation, the lower limit of the special irregularity penalty imposed on notaries who certify papers for which stamp duty has not been paid without collecting the tax and penalty, or who issue or provide copies of them, is determined as 40 liras for each paper.

While penalties for those who do not comply with the relevant provisions of the Tax Procedure Law are increased by the revaluation rate every year, it is aimed to increase their deterrence by redetermining these penalties with the regulation.

A special irregularity penalty will be imposed on those who do not comply with the obligations brought in accordance with the provision regarding the collection of information within the scope of the information exchange provisions of international agreements to which Turkey is a party.

In cases where all kinds of digital environments, including the internet, as well as electronic commerce, are used for economic and commercial purposes such as advertising, announcements, sales, and leasing, the special irregularity penalty to be applied in case those who are obliged to provide information do not make a notification regarding these obligations, or make their notifications incompletely or misleadingly, will be proportional to the economic and commercial size of these taxpayers.

The special irregularity penalty applied to those who are within the scope of the documentation obligation but do not comply with this obligation is also being increased. If those who make payments without complying with this obligation report the situation within 5 business days before it comes to the knowledge of the administration, no penalty will be imposed.

In cases where collections regarding the delivery of goods or provision of services are made using the name or account of others through banks and similar financial institutions, payment institutions, or PTT, a special irregularity penalty of 10 percent of the amount subject to the transaction, not less than the penalties applied according to this provision for each transaction, will be imposed separately on those who perform the delivery of goods or provision of services and those on whose behalf or account the payment is made. The total special irregularity penalty to be imposed within a calendar year in accordance with this provision cannot exceed 20 million liras.

Except for cases permitted under the Law on Bank Cards and Credit Cards, 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 in the name of the taxpayer's own liability, a 3-fold special irregularity penalty determined according to this provision will be applied separately for each transaction to the taxpayers who make the collection and those who allow the use of these systems or devices registered in their own name. The total special irregularity penalty to be imposed within a calendar year in this context cannot exceed 20 million liras.

If the requested collateral is not provided or completed on time, a special irregularity penalty equal to the amount of collateral that should have been provided or completed within the scope of the provision will be imposed on those who do not provide or complete the collateral.

In order to ensure tax security, a penalty of 10 times the special irregularity penalty included in the provision will be imposed for each detection on manufacturers or importers of cash registers, and secure service providers, banks, electronic money institutions, payment institutions, charging network license holders, and those authorized to provide services for any of the creation, signing, transmission, and storage of electronic ledgers, documents, and records, as well as taxpayers who allow the use of, deliver, or sell programs such as ordering, sales, accounting, and stock tracking, who act contrary to the matters that must be done, not done, or fulfilled by them regarding the devices and systems whose qualities are determined or approved, or the electrical, electronic, magnetic, and similar devices and systems whose use is made mandatory. The total special irregularity penalty to be imposed within a calendar year in accordance with this provision cannot exceed 20 million liras.

If a single act within the scope of this provision requires more than one penalty requiring a special irregularity penalty included in the relevant provision of the Law, the heaviest of these penalties will be imposed.

OVERTIME PAY FOR REVENUE ADMINISTRATION PERSONNEL

With the law, in order to increase voluntary compliance with taxes, the tax principal is being removed from the scope of reconciliation. The provisions in this context in the Tax Procedure Law are being repealed.

Personnel of the Revenue Administration who actually work outside of normal working hours and outside the office will be paid overtime pay in an amount found by multiplying the indicator figure of 160 by the civil servant monthly coefficient for each hour they work in this way. This payment will not be subject to any tax or deduction, except for stamp duty. The overtime pay that can be paid for each personnel cannot exceed 50 hours per month, and the number of personnel who can be paid overtime pay cannot exceed 20 percent of the total number of civil servants and contracted personnel in the provincial organization staff and positions of the Administration.

The minimum monthly payment amount, which is envisaged as 10 thousand liras for those who are paid old-age, disability, and death pensions and their beneficiaries, will be increased to 12 thousand 500 liras.

According to the Law Proposal on Amendments to Tax Laws and Certain Other Laws accepted in the General Assembly of the TBMM, existing reconciliation applications will be concluded according to the provisions of the Tax Procedure Law before it was amended.

VAT exemption and deduction for services such as leasing and maintenance provided in marinas for sea transport vehicles used in non-commercial activities such as travel, entertainment, and sports will be abolished.

In merger, transfer, and division transactions, the transfer of deferred VAT and the right to refund to the new company through tax inspection will be allowed, regardless of the 5-calendar-year criterion or the statute of limitations. If the deductible VAT amounts in the taxpayers' VAT declarations cannot be eliminated through deduction for 5 calendar years, it will be possible to take them into account as an expense in the determination of income or corporate tax through a tax inspection to be carried out by removing them from the records at the end of this period.

In order to ensure that taxpayers' VAT refunds are made correctly and to prevent unfair VAT refunds, the main procedure for VAT refunds will be determined as "tax inspection".

It will be essential for refund requests arising from transactions that give rise to the right to a refund in accordance with the provisions of the Law to be fulfilled according to the result of the tax inspection report.

Non-deductible value-added tax will be removed from the value-added tax account transferred to the next period and taken into a special account. The value-added tax transferred to the next period, which is taken into the special account, will be taken into account as an expense in the determination of income or corporate tax for the year in which the inspection is completed, as a result of a tax inspection to be carried out within one year from the date of request, upon the request of taxpayers within 3 years, regardless of the statute of limitations regulated in the Tax Procedure Law. Value-added tax for which no such request is made cannot be written off as an expense. The Ministry of Treasury and Finance will be authorized to determine different procedures other than tax inspection in the implementation of the relevant article, and to determine the procedures and principles regarding the implementation of the article. This provision will enter into force on January 1, 2030.

VAT EXEMPTION FOR FOREIGNERS' EARTHQUAKE AID

With the regulation, VAT exemption will be provided for aid to be provided by foreign state institutions and organizations due to the earthquake.

Deliveries and services made from January 1, 2024, to foreign state institutions and organizations regarding the construction of immovable properties such as housing, workplaces, schools, student dormitories, hospitals, places of worship, culture and art centers, and libraries, to be donated to public administrations with general budgets within the scope of the protocol signed between public administrations with general budgets and foreign state institutions and organizations in places accepted as disaster areas effective for general life due to the earthquakes that occurred on February 6, 2023, and the delivery of housing to be donated to public administrations with general budgets within the scope of the protocol signed between public administrations with general budgets and foreign state institutions and organizations in these places to foreign state institutions and organizations, will be exempt from value-added tax until December 31, 2025.

Taxes incurred due to deliveries and services made in this context will be deducted from the taxes calculated on taxable transactions. Taxes that cannot be compensated through deduction will be refunded upon the request of the taxpayer who performs transactions within the scope of the exemption in accordance with the provision of the Law.

The income and corporate tax exemption granted to the earnings obtained from sales made to the domestic market by institutions operating in free zones is being abolished. For taxpayers engaged in production activities in free zones, only the earnings obtained from the sale of products manufactured in these zones to abroad will be exempt from income or corporate tax. The regulation will apply to earnings obtained from January 1, 2025.

SHORT-TERM INSURANCE BRANCHES PREMIUM RATE IS 2.25 PERCENT

With the law, differences in the SCT application that occur in the domestic delivery and import of some goods to be imported by national security institutions will be eliminated.

The limitation of "up to 20 percent" of the minimum specific tax amount taken from some tobacco products will be removed, and a specific tax can be taken as much as the minimum specific tax amount to be taken for the product in the unit package.

Even if employees of the Turkish Red Crescent Association and businesses owned by or affiliated with this association receive a retirement or old-age pension from any social security institution, these pensions cannot be cut.

The short-term insurance branches premium rate will be determined as 2.25 percent, and the President will be authorized to reduce this rate to 1.5 percent and increase it to 2.5 percent.

The minimum monthly payment amount, which is envisaged as 10 thousand liras on a file basis for those who are paid old-age, disability, and death pensions and their beneficiaries, will be increased to 12 thousand 500 liras. This provision will be applied starting from the July payment period.

With the law, the application regarding the payment of the 5-point social security support premium by the Treasury, which is provided to employers if those who are considered insured before September 8, 1999, and who are connected to an old-age or retirement pension for the first time, continue to work in the same workplace subject to social security support premium, will be terminated.

The earnings of the affiliated enterprises of multinational enterprise groups whose annual consolidated revenue in the consolidated financial statement of their ultimate parent enterprise exceeds the Turkish lira equivalent of 750 million euros in at least 2 of the 4 accounting periods preceding the accounting period in which the income is reported, in the relevant accounting period, will be subject to "local and global minimum supplementary corporate tax".

With the Law on Amendments to Tax Laws and Certain Other Laws accepted in the General Assembly of the TBMM, amendments will be made to the Social Insurance and General Health Insurance Law.

Accordingly, the President will be authorized to add appropriations to the relevant section of the Ministry of Treasury and Finance budget in 2024 in order to meet the allowance need that arises within the scope of pensions paid from disability and old-age insurance and payments to be made on a monthly basis with pensions.

According to the amendment made to the Corporate Tax Law, funds and partnerships that invest in immovable properties, which are exempt from corporate tax provided that they are established in Turkey, will be required to distribute 50 percent of the earnings they obtain from the immovable properties they own, including those that are commercial goods, as dividends until the end of the second month following the month in which the corporate tax return for the accounting period in which they are obtained must be submitted.

In case the profit is not distributed to the partners up to the specified rate within this period, the taxes that were not accrued on time due to benefiting from the exemption will be considered as lost. This provision will apply to earnings obtained from January 1, 2025.

Payments made by intermediary service providers and electronic commerce intermediary service providers, which allow for the conclusion of contracts or placing orders for the supply of goods or services of electronic commerce service providers in electronic commerce marketplaces, to service providers and electronic commerce service providers operating according to the relevant provisions due to their activities will be brought under the scope of tax withholding.

Tax withholding will be made on payments made to full taxpayer institutions regarding the purchase of goods and services, taking into account the sectors and activity areas determined by the President.

The President will be authorized to reduce the payments subject to tax withholding to zero and increase them up to the corporate tax rate, separately or collectively, based on activity areas and payment types, and the goods and services subject to tax withholding, based on activity areas, sectors, business groups, and business types.

DOMESTIC MINIMUM CORPORATE TAX

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 Procurement of Services for Facilities by the Ministry of Health with the Public-Private Partnership Model and Amendments to Certain Laws and Decree Laws.

With the regulation, this rate will be applied not only to the earnings these institutions obtain exclusively from these activities, but to all their operating earnings. The provision will be valid for institutions that are directly parties to contracts arranged according to these laws; general provisions regarding the corporate tax rate will be valid for the earnings obtained by subcontractors from the activities they carry out in this context with subcontracting contracts.

According to the provision titled "domestic minimum corporate tax" added to the Corporate Tax Law, the calculated corporate tax cannot be less than 10 percent of the corporate earnings before deductions and exemptions are subtracted. In this calculation, the exemption for participation earnings obtained from full taxpayer institutions, emission premium earnings exemption, exemption earnings of investment funds and partnerships other than earnings obtained from owned immovable properties, patronage dividend exemption, exemption applied to earnings obtained from "sell-lease back" transactions made with financial leasing companies and asset leasing companies, exemption applied to earnings obtained from the operation and transfer of ships registered in the Turkish International Ship Registry, and venture capital fund deduction and protected workplace deduction will not be taken into account. The technology development zone earnings exemption of corporate tax taxpayers who fall under the definition of micro and small enterprises, as well as the R&D and design deductions of the same enterprises, will also be deducted from the earnings in the calculation.

In addition to the tax not paid due to deductions applied to the earnings of institutions whose shares are offered to the public at a rate of at least 20 percent to be traded on the Borsa Istanbul Equity Market for the first time, institutions that export, and institutions that possess an industrial registry certificate and are actually engaged in production activities exclusively from their production activities, the corporate tax that taxpayers do not pay due to the reduced corporate tax application, limited to the investment contribution amounts within the scope of incentive certificates obtained from the Ministry of Industry and Technology before the date the regulation enters into force, will be deducted from the corporate tax that must be paid due to the minimum tax calculation.

These provisions will not be applied for 3 accounting periods starting from the accounting period in which the activity began for institutions that start operating for the first time. The phrase "corporate earnings before deductions and exemptions are subtracted" in this regulation will express the amount found by adding legally non-deductible expenses to the commercial balance sheet profit at the end of the accounting period.

The President will be authorized to reduce the mentioned rate to zero or increase it up to one fold, separately or collectively, based on sectors, activity areas, business lines, or production areas, and the Ministry of Treasury and Finance will be authorized to determine the procedures and principles regarding the implementation of the provision.

These provisions will enter into force on the date of publication to be applied to earnings obtained in 2025 and subsequent taxation periods, and for institutions subject to a special accounting period, to earnings obtained in the special accounting period starting in the 2025 calendar year and subsequent taxation periods.

LOCAL AND GLOBAL MINIMUM SUPPLEMENTARY CORPORATE TAX

According to the amendment made to the Corporate Tax Law, the earnings of the affiliated enterprises of multinational enterprise groups whose annual consolidated revenue in the consolidated financial statement of their ultimate parent enterprise exceeds the Turkish lira equivalent of 750 million euros in at least 2 of the 4 accounting periods preceding the accounting period in which the income is reported, in the relevant accounting period, will be subject to "local and global minimum supplementary corporate tax". In case the accounting period is different from 12 months, the amount determined by completing the calculated consolidated revenue to one year will be taken into account in the determination of the mentioned revenue limit.

This provision will enter into force on the date of publication to be applied to earnings obtained in 2024 and subsequent taxation periods, and for institutions subject to a special accounting period, to earnings obtained in the special accounting period starting in the 2024 calendar year and subsequent taxation periods.

Some definitions will be added to the Law within the framework of the local and global minimum supplementary corporate tax, and those who are exempt from this tax and earnings that are exempt from this tax will be determined.

Earnings obtained from international maritime transport activities and earnings obtained from some activities carried out in connection with this activity will be exempt from local and global minimum supplementary corporate tax.

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

The calculation of adjusted covered taxes taken into account in the determination of the tax burden will be stipulated. 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.

In case the corporate tax rate in the legislation of the relevant country is below the minimum corporate tax rate of 15 percent, the amounts calculated according to Acceptable Financial Accounting Standards and taken into deferred tax asset accounts will be recalculated by applying the minimum corporate tax rate.

Enterprises in countries where corporate tax is not applied will be given the opportunity to take into account the amounts determined by multiplying the losses by the minimum corporate tax rate in the covered taxes in subsequent accounting periods.

OTHER PROVISIONS

With the law, regulations regarding enterprise groups for which the tax burden will be calculated separately, situations in which additional current period minimum supplementary corporate tax will be calculated, and the allocation of covered taxes between affiliated enterprises will also be stipulated.

Enterprise-based earnings or losses will be determined by applying the specified adjustments to the financial accounting net earnings or losses of the enterprises.

A tax security institution is being established for the local and global minimum supplementary corporate tax. In this context, in financing supply 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 borne by the borrowing affiliated enterprise and to be taken into account as an expense in the determination of enterprise-based earnings will be limited to the amount taken into account as income by the lending affiliated enterprise.

It will be determined in which cases the amounts taken into account as income in the records of affiliated enterprises due to the waiver of receivables will not be taken into account in the determination of enterprise-based earnings or losses; and how qualified and non-qualified tax credits will be taken into account in the ratio to be made in the determination of the tax burden.

With the law, how transactions that are not at arm's length between affiliated enterprises will be corrected, and regulations regarding the allocation of earnings or losses between the main center and its affiliated workplace or the earnings or losses of the tax-transparent enterprise will be stipulated.

Provisions regarding the calculation of the tax burden, which is important in the determination of the local and global minimum supplementary corporate tax rate, will be regulated. Taxpayers who implement these provisions will be enabled to determine the local and global minimum supplementary corporate tax rate.

DEPARTURE FEE FOR TRAVELING ABROAD INCREASED TO 500 TL

With the law containing regulations regarding the tax and social security field, the fee amount to be taken per departure from citizens traveling abroad will be increased to 500 liras.

According to the Law on Amendments to Tax Laws and Certain Other Laws accepted in the General Assembly of the TBMM, regulations will be made in the Corporate Tax Law.

The rate of the global minimum supplementary corporate tax will be 15 percent.

The difference between the minimum corporate tax rate and the rate determined according to this law will be the global minimum supplementary corporate tax rate. If the country-based tax burden exceeds the minimum corporate tax rate, global minimum supplementary corporate tax will not be calculated.

Matters regarding the determination of global minimum supplementary corporate institutions that will be taxpayers, the taxation period, declaration, assessment, payment, and calculation of the tax base will be determined.

Provisions regarding the "local minimum supplementary corporate tax", which defines affiliated enterprises and business partnerships that are affiliated with multinational enterprise groups and are resident in Turkey, the taxation period, declaration, assessment, and payment will also be regulated.

A tax deferral institution will be applied in transfers carried out with the enterprise restructuring application. In this context, earnings or losses arising from the transfer of assets and liabilities will not be taken into account in the determination of the enterprise-based earnings or loss of the transferring affiliated enterprise.

The law includes procedures to be applied in mergers, divisions, and share transfers.

SPECIAL TAXATION CASES

With the law, special taxation cases are also stipulated in the Public Procurement Law. Accordingly, the enterprise-based earnings of the transparent enterprise, which is the ultimate parent enterprise of the multinational enterprise group, will be reduced in the amount corresponding to the ownership share of this enterprise in determined situations.

The deductible dividend application in taxation and the conditions regarding enterprise-based earnings in cases where this system is applied are determined.

In cases where the taxation system based on profit distribution is applied, the calculation of adjusted covered taxes and the rules that affiliated enterprises using this method must follow are determined. A regulation is being made regarding the calculation method for investment enterprises.

The Ministry of Treasury and Finance will be authorized to determine the procedures and principles regarding the mentioned regulations.

The provisions of the regulation regarding the local and global minimum supplementary corporate tax will apply to earnings obtained in 2024 and subsequent taxation periods, and for institutions subject to a special accounting period, to earnings obtained in the special accounting period starting in the 2024 calendar year and subsequent taxation periods.

TRANSITIONAL PROVISIONS

With the amendment to be made to the Corporate Tax Law, transitional provisions regarding taxation rules for the implementation of the local and global minimum supplementary corporate tax are regulated. Accordingly, the ratios of the net book values of tangible fixed assets to be deducted from the tax base of the local and global minimum supplementary corporate tax and the ratios of the gross wages of the employees of affiliated enterprises are redetermined by years until the 2032 accounting period.

The global minimum supplementary corporate tax return will be declared until the evening of the last day of the 18th month following the month in which the accounting period closes for the 2024 accounting period, and the tax will be paid until this date; these provisions will also apply in terms of declaration and payment for those who fall within the scope of this tax for the first time in subsequent periods.

Amounts recorded as deferred tax assets or liabilities in financial statements due to transactions before January 1, 2024, will be taken into account in the implementation of this regulation. Amounts arising from transactions that were taken into account as deferred tax assets after November 30, 2021, and were not included in the calculation of country-based earnings and losses will not be taken into account in the determination of the tax burden. The relevant provisions within the scope of the undertaxed payments principle will apply to earnings obtained from January 1, 2025.

The tax calculated within the scope of the undertaxed payments principle in countries where the corporate tax rate is applied at least 20 percent will be considered zero between accounting periods starting before December 31, 2025 (including this date) and ending as of December 31, 2026. Multinational enterprise groups that meet the specified conditions together will be able to choose any of the applications included in the mentioned provisions for the relevant country.

With the amendment made to the Law on the Departure Fee for Traveling Abroad and the Law on Amendments to Various Laws, the fee amount to be taken per departure from citizens traveling abroad will be increased to 500 liras.

Accordingly, the fee will be applied by increasing it every year at the revaluation rate determined in accordance with the relevant provisions of the Tax Procedure Law regarding the previous year. Fractions up to 10 liras of the fee amount calculated in this way will not be taken into account. In departures made abroad until the end of the 10th day of January of the year in which the fee calculated in this context is applied, no difference will be taken for fee payments made over the amount valid as of the end of the previous year. This provision will enter into force on the 10th day following the publication of the regulation.

8 NEW ARTICLES WERE ENACTED

With the motion of the AKP accepted in the General Assembly, 8 new articles were enacted into the law, including some articles of the 9th Judicial Package and the law proposal for the protection of consumers. An amendment was made to one article of the law.

Taking into account the justifications of the Constitutional Court's cancellation decision, a monthly additional compensation will be paid to the President of the Court of Cassation, the President of the Council of State, the Chief Public Prosecutor of the Court of Cassation, the Chief Public Prosecutor of the Council of State, the First Deputy Presidents of the Court of Cassation, the Deputy Presidents of the Council of State, the Deputy Chief Public Prosecutor of the Court of Cassation, the heads of chambers of the Court of Cassation and the Council of State, the members of the Court of Cassation and the Council of State, and the Undersecretary of the Ministry of Justice in the amount found by multiplying the indicator figure of 40,000 by the coefficient applied to civil servant salaries; to first-class judges and prosecutors whose monthly payment rate is 86 percent and to inspectors actually working in the Inspection Board of the Ministry of Justice and the Inspection Board of the Council of Judges and Prosecutors in the amount found by multiplying the indicator figure of 35,000 by the coefficient; to other first-class judges and prosecutors in the amount found by multiplying the indicator figure of 30,000 by the coefficient; to judges and prosecutors who have been separated into the first class in the amount found by multiplying the indicator figure of 26,000 by the coefficient; and to other judges and prosecutors in the amount found by multiplying the indicator figure of 22,500 by the coefficient. This regulation will be applied starting from August 15.

Of the judges and prosecutors subject to this Law, only one and the higher of the monthly additional allowance paid to those working in the Constitutional Court and the allowance paid to those working in the Court of Jurisdictional Disputes and the additional compensation determined in this regulation will be paid.

Taking into account the justifications of the Constitutional Court's cancellation decision, an amendment will be made to the Administrative Procedure Law. Accordingly, decisions given by administrative and tax courts regarding tax cases, full judgment cases, and cancellation cases filed against administrative actions whose subject matter does not exceed 31 thousand Turkish liras will be final, and the appeal path cannot be applied against them.

With the amendment in the same law, tax cases, full judgment cases, and cases filed against administrative actions whose subject matter exceeds 920 thousand Turkish liras can be appealed. This regulation will also apply to decisions given by regional administrative courts from July 13 until the date this article enters into force. The appeal period for these decisions will be 30 days from the date of entry into force of the article for those notified before the date of entry into force of this article, and from the date of notification for those notified after the date of entry into force of this article.

Tax cases, full judgment cases, and cases filed against administrative actions whose subject matter exceeds 270 thousand Turkish liras but does not exceed 920 thousand Turkish liras, and cases that are re-decided upon a reversal decision in the appeal path review, can be appealed. This regulation will apply to decisions given after the date of entry into force of the article.

The monetary limits envisaged in the Administrative Procedure Law will be applied by increasing them every year at the revaluation rate determined and announced in accordance with the provisions of the repeated 298th article of the Tax Procedure Law regarding the previous year, effective from the beginning of the calendar year. Fractions not exceeding 1000 Turkish Liras of the limits determined in this way will not be taken into account.

In determining the cases where a hearing is mandatory, the monetary limit on the date the case was filed will be taken as the basis; in determining the decisions that can be appealed, the monetary limit on the date the final decision was given by the court of first instance or the regional administrative court will be taken as the basis. However, the increase in monetary limits after the final decision date will not apply to cases re-examined upon the reversal decision of the regional administrative court or the annulment decision of the Council of State. This regulation will also apply to decisions given by regional administrative courts from July 13 until the date this article enters into force. The appeal period for these decisions will be 30 days from the date of entry into force of the article for those notified before the date of entry into force of this article, and from the date of notification for those notified after the date of entry into force of this article.

Taking into account the Constitutional Court's cancellation decision of the article titled "Institution revenues" of the Presidential Decree regarding the establishment of the Turkey Energy, Nuclear and Mineral Research Agency (TENMAK), a regulation was made regarding the institution's revenues.

The revenues of TENMAK will consist of Treasury aids to be made from the general budget, revenues to be obtained from institution activities, publication revenues, revenues of movable or immovable properties belonging to the institution, revenues transferred from businesses and companies and other units, fees paid to the institution for radioactive waste management, revenues obtained from intellectual and industrial property rights, and all kinds of aids, donations, and bequests to be made to the institution.

The institution will be able to give awards and scholarships according to the regulation issued by the institution, without being subject to the limitations in other legislation, within the upper limits determined by the President, in order to ensure the training and development of human resources on subjects related to its field of duty.

New fields of law are being added to the fields in which questions will be asked in the judge and prosecutor assistantship exam. The number of candidates to be called for the interview is being reduced from twice the number of staff positions specified in the exam announcement to once.

On the other hand, by making an amendment to one article of the law under discussion, a collective bargaining bonus in the amount determined by collective bargaining will be paid every month to public officials who are members of public officials' unions in accordance with the provisions of the Law on Public Officials' Unions and Collective Bargaining, and whose membership dues are deducted from their monthly salary or wage, together with their monthly salary or wage.

News Source: 12punto