globaltaxnews.ey.comSign up for tax alert emailsForwardPrintDownload | |
23 March 2023 Türkiye introduces additional tax for 2022
The Turkish Parliament recently enacted Law No. 7440 (Law), which was then published in the Official Gazette and entered into force on 12 March 2023. Based on a bill entitiled “the Restructuring of Certain Receivables and the Amendment of Some Laws,” the Law includes new taxes for 2022 to help address the damage that recent earthquakes caused in the Türkiye’s southeastern region beginning on 6 February 2023. The Law adds a tax for corporations that benefitted from certain exemptions and deductions to be claimed in their corporate tax returns for 2022. Generally, corporate taxpayers will declare a 10% additional tax on their 2022 corporate income tax return, regardless of their corporation tax base, on (1) the amounts they claimed as deductions and exemptions based on the certain provisions of Corporation Tax Code (CTC) and other laws and (2) the tax bases to which a discounted corporation tax rate applied within the scope of Article 32/A of the CTC. In some cases, the additional tax will be 5%, rather than 10%. For example, a 5% rate will apply for exemptions related to participation earnings, including foreign participations. This new tax will be paid in two installments, with the first installment due in 30 April 2023 (which will be extended to 2 May 2023 due to holidays) and second installment due in August 2023. Earnings from the sale of assets and rights for the purpose of issuing a leasing certificate (Article 5/1-k of CTC) Capital investment funds, up to 10 % of the declared income per to the Article 325/A of Tax Procedure Code (Article 10/1-g of the CTC) Income derived by micro and small enterprises, defined in article 407 of Presidential Decree dated 10 July 2018, from technology development zones and research and development and design centers Income that companies obtain through their international subsidiaries or their permanent representatives (Article 5/1-g of CTC) Income from construction, repair, assembly work, and technical services performed abroad (Article 5/1-h of CTC) Income for the operation of preschool education, primary education, special education, secondary education private schools, private nursery and day care houses and rehabilitation centers (Article 5/1-i of CTC) Half (50%) of the income obtained from the services provided to people and institutions resident abroad in Turkey or benefited abroad (Article 10/1-g of CTC) A 5% additional tax will be calculated on the exempted income obtained from abroad with a 15% tax burden and the participation exemption in Article 5/1-a of the CTC mentioned above.
Document ID: 2023-5354 | |