04.04.2023/50
Taxpayers Registered in Areas Declared as Force Majeure Who Wish to Exit the Force Majeure Situation.
The amendment to the “Partial Withholding Tax and Withholding Tax Applicable Buyers” section (I/C-2.1.3.1.) of the Value Added Tax General Application Communique was published in the Official Gazette No. 32150 on 01.04.2023 with Serial No. 46.
Explanations about the partial withholding tax in force majeure situations were provided in our circular numbered 19.02.2023/33.
This time, the following sentences have been added to the last paragraph of the relevant section of Serial No. 46 Communique regarding exiting the force majeure situation:
“In the case where the buyer taxpayers wish to exit the force majeure situation and upon their application to the Administration, if the force majeure situation is terminated, withholding tax will apply in accordance with the general provisions from the date the force majeure situation ceases. Furthermore, if both the seller and buyer taxpayers involved in the transaction are under force majeure, withholding tax will continue to apply in accordance with the general provisions.”
Accordingly, it has become possible to voluntarily exit the force majeure situation.
A summary of the withholding tax application in force majeure situations is provided in the table below:
| Buyer | Seller | Withholding Tax |
| Under Force Majeure | Under Force Majeure | Applicable |
| Not Under Force Majeure | Under Force Majeure | Applicable |
| Under Force Majeure | Not Under Force Majeure | Not Applicable |
| Not Under Force Majeure | Not Under Force Majeure | Applicable |
| Voluntary Exit | Under Force Majeure | Applicable |
| Voluntary Exit | Not Under Force Majeure | Applicable |
You can access the relevant Communique here.
Best regards,
BİLGENER
