Turkey adopts law raising tax revenue from high earners
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.
