17.07.2023/76
The Corporate Tax Rate was increased to 25% and the 1-point corporate tax deduction applied to export earnings was increased to 5 points.
Law No. 7456 on Additional Motor Vehicles Tax and Amendments to Certain Laws and Decree Law No. 375 for the Compensation of Economic Losses Caused by the Earthquakes Occurred on 6.2.2023 was published in the Official Gazette dated 15.07.2023 and numbered 32249.
The Law amended the corporate tax rates:
Article 32 of the Corporate Tax Law No. 5520 states that “corporate tax is levied at the rate of 20% on corporate income. However, corporate tax is levied at the rate of 25% on the corporate income of banks, companies within the scope of Law No. 6361, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies.”
With the amendment made by Article 21 of Law No. 7456, the corporate tax rate
increased to 25%. This rate will be applied as 30% for the above-mentioned financial institutions.
On the other hand, the 1-point corporate tax deduction rate applied to the earnings of exporting companies exclusively from exports in the seventh paragraph of the aforementioned Article 32 has been increased to 5 points.
Both regulations Starting from 01.10.2023, starting from the declarations to be submitted; for the earnings of corporations for the year 2023 and subsequent taxation periods, institutions subject to the special accounting periodise 2023 to be applied to the earnings obtained in the special accounting period starting in the calendar year 2023 and the following taxation periods on 15.07.2023 entered into force.
Accordingly, taxpayers subject to the normal accounting period will apply the new tax rates at the time of filing their third advance tax return, and taxpayers subject to the special accounting period will apply the new tax rates at the time of filing their first advance tax return.
The relevant Law is available here.
Sincerely,
BİLGENER
