27.09.2024/44
The Earnings Exemption Amount Applied to Young Entrepreneurs will be Applied as the Second Tranche of the Income Tax Tariff. It has been made possible for taxpayers who have switched from Simple Procedure to Real Procedure to Benefit from the Exemption in question
In the repeated Article 20 of the Income Tax Law, 75.000,00-TL portion of the earnings of full taxpayer real persons who have been registered as income taxpayers for the first time due to their commercial, agricultural or professional activities and who have not completed the age of twenty-nine as of the starting date of the taxpayer, for three taxation periods starting from the calendar year in which they started their activities, was exempted from income tax.
With the amendment made by Law No. 7440, this exemption was amended to be applied up to the amount in the second segment of the tariff written in Article 103.
With the Income Tax General Communiqué Serial No. 327 published in the Official Gazette dated 27.09.2024 and numbered 32675, this amendment was incorporated into the Income Tax General Communiqué Serial No. 292, which regulates the exemption.
Accordingly, 230.000,00-TL of the 2024 earnings of young entrepreneurs who meet the conditions regulated in the relevant Communiqué will be exempt from tax.
On the other hand, taxpayers who switched from simple procedure to real procedure could not benefit from this exception due to the regulation in the second sentence of the second sentence of the sixth paragraph of Article 8 of the Communiqué in question, “even if the taxpayers who switched to real procedure meet the other conditions of the young entrepreneur exception, they cannot benefit from this exception since the condition of establishing a taxpayer for the first time has been violated.”
With the amendment, this regulation has been abolished. Accordingly, taxpayers who change from simple procedure to real procedure will be able to benefit from the earnings exemption provided to young entrepreneurs.
You can access the relevant Communiqué here.
Sincerely,
BİLGENER
