According to the news of Daily Sabah, the Turkish Parliament ratified on Thursday new laws on tax regulation including higher rates for high earners and hotel accommodation, as well as new taxes on digital services.

The law aims to collect “more tax from those earning more and less from those earning less.”

The law proposes new taxes – namely a valuable house tax and accommodation tax. The regulation includes a new tax bracket of 40%, from the previous 35%, for those earning more than TL 500,000 annually, according to the final text of the regulation.

Houses that cost more than TL 5 million will be subject to a valuable residence tax, under the regulation. Namely, owners of homes worth between TL 5 and TL 7.5 million will pay 0.3% tax, while a 0.6% tax will be applied on houses worth between TL 7.5 million and TL 10 million and houses worth over TL 10 million will be taxed 1%.

The tax on accommodation services will be 1% until the end of 2020 and will rise to 2% afterwards. It will be applied on the revenue and will be paid by in-house guests.

The regulation also sees a 7.5% tax on digital advertising and content. The digital services tax will include all manners of online advertisements and services that allow any digital content to be listened, watched or downloaded, according to the new regulations.

The law also lifts the tax exception on sports referees. Moreover, the stoppage collected from athletes’ revenues will be raised to 20% from 15%.

The law will be first debated by Parliament’s planning and budget committee.

Source: Daily Sabah / link: https://www.dailysabah.com/economy/2019/11/22/parliament-adopts-new-taxes-on-digital-services-accommodation-valuable-houses
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news of Hürriyet Daily News, the Turkish parliament on Nov. 21 ratified a law that brings new regulations to the country’s tax system.

According the ruling Justice and Development Party (AKP), the law aims to collect “more tax from those earning more and less from those earning less”.

The law proposes new taxes – namely a valuable house tax and accommodation tax.

Owners of homes worth between 5-7.5 million Turkish liras ($862,000-$1.300 million) will pay 0.3 percent tax under the law, while a 0.6 percent tax will be applied on houses worth between 7.5 million and 10 million Turkish liras ($1.724 million) and houses worth over 10 million Turkish liras will be taxed by 1 percent.

The law also raises the maximum income tax rate to 40 percent from the previous 35 percent.

An accommodation tax will be applied 2 percent on the revenue and will be paid by in-house guests.

The law also lifts the tax exception on sports referees.

Also, the stoppage collected from athletes’ revenues will be raised to 20 percent from 15 percent.

The law will be first debated in the parliament’s planning and budget committee.

Source: Hürriyet Daily News / link: http://www.hurriyetdailynews.com/turkish-parliament-ratifies-new-taxes-148989
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

1- If a taxpayer, who takes advantage of an educational institution and a rehabilitation center’s income exception, opens a new school or a center in addition to operated school or centers; the earning, which is received from the new school or the center, will be evaluated as a new unity in terms of exception procedure.

2- If a taxpayer, who takes advantage of an educational institution exception, transfers those institutions to another institution; he/she will not take advantage of the exception for five accounting periods, but he/she will take advantage of it for the untapped period.

Source: Corporation Tax Law

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

1- THERE IS NO NEED TO PAY TAXES FOR EARNINGS RECEIVED FROM SHIPS REGISTERED IN TURKISH INTERNATIONAL SHIP REGISTRY.
The earnings received from                                                                                     1-the management and
2-transfer of “ships” and “yachts” registered in Turkish International Ship Registry are exempted from Income tax, Corporate tax and funds.

2- PURCHASE AND SELLING OF SHIPS REGISTERED IN TURKISH INTERNATIONAL SHIP REGISTRY ARE EXEMPTED FROM STAMP TAX.
1- Purchase
2- Selling
3- Hypothec
4- Registry
5- Credit
6- Charter
7- Time Charter
8- All of the freight contracts related to ships and yachts registered in Turkish International Ship Registry are not subject to stamp tax and fees. In addition to that, fees taken because of these transactions are not subject to banking and insurance transaction tax and funds.

3- SELLING AND TRANSFER OF SHIPS REGISTERED IN TURKISH INTERNATIONAL SHIP REGISTRY ARE EXEMPTED FROM TAXES.
The transfer of ships from Turkish International Ship Registry to another registry (by cancelling) or transfer by another way is exempted from tax.
However, according to sub clause (c) of the first clause of article 4 of Turkish International Ship Registry Law, if a ship is transferred from Turkish International Ship Registry to another registry (by cancelling) or transfer by another way , these ships have to be operated at least 6 months as registered in Turkish International Ship Registry.

Source: Turkish International Ship Registry Law
(Article 12 – (Amendment: 2.12.2004 – article 5266/3), (Amendment of the second clause: 18.1.2017-article 6770/14), (additional paragraph: 18.1.2017-article 6770/14)

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.