26.01.2022/5
On the Amendments Made by Law No. 7351
Law No. 7351 on the Amendment of the Private Pension Savings and Investment System Law, Certain Laws and the Decree Law No. 375 entered into force after being published in the Official Gazette No. 31727 dated 22.01.2022. Some important regulations in the Law are as follows:
1. With the subparagraph (4) added to Article 5/1-a of the Corporate Tax Law No. 5520 (KVK), dividends received by corporations from the participation shares of other investment funds subject to full liability are also exempt from corporate tax (except for the earnings from investment funds whose portfolio includes foreign currency denominated assets and gold and other precious metals and capital market instruments based on them).
Thus, while corporate tax exemption was previously applied to the dividends derived from the participation shares of fully taxpayer venture capital investment funds and the shares of venture capital investment trusts, an exemption has been introduced for the dividends derived from investment funds other than venture capital.
2. With the paragraphs 7 and 8 added to Article 32 of the KVK, the corporate tax rate will be reduced by 1 percentage point for the export earnings of exporting corporations and the earnings from production activities of corporations holding an industrial registry certificate and actually engaged in production.
If the deduction is utilized due to manufacturing activities, this deduction will not be utilized due to exports. The said 1% corporate tax deduction will be applied on the corporate tax rate after the other deductions previously mentioned in the relevant article are applied.
3. With the provision added to paragraph (4) of Article 27 of the Administrative Trial Procedure Law No. 2577, a stay of execution decision will not be issued without obtaining a collateral of 50% of the amount subject to the lawsuit in the lawsuits filed regarding the taxes requested to be refunded in accordance with the tax laws.
4. According to the amendments made to the Individual Pension Savings and Investment System Law No. 4632 by Law No. 7351;
- Participants were offered partial payment in case they leave the system.
- The state contribution, which was set at 25% in the PPS system, was increased to 30%.
- In addition, people over the age of 45 who wish to join the system are also allowed to do so.
You can access the relevant law here.
Sincerely,
BİLGENER
