Communiqué Amending the General Communiqué on Corporate Tax has been published
Some amendments have been made with the Communiqué Amending the Corporate Tax General Communiqué Serial No: 18 (Serial No: 1) published in the Official Gazette on 25.05.2021.
According to the Communiqué;
- A sub-section titled “11.13. Financing expense restriction” has been added after the sub-section titled “11.12. Expenses incurred due to prohibited acts” of the section titled “11. Unacceptable Deductions” of the General Communiqué on Corporate Tax (Serial No: 1).
- The section titled “15.6.7. Own shares or partnership shares acquired by capital companies” has been added following the section titled “15.6.6. Advance dividend distribution” of the same Communiqué.
- Sub-section titled “32.1.1. Corporate tax rate and provisional tax” has been added after the section titled “32.1.1. 2 points discount on corporate tax rate for the corporations that are offered to public at a rate of at least 20% to be traded in Borsa Istanbul Equity Market for the first time” of the same Communiqué.
- The following section has been added after section “36.8.” of the same Communiqué.
- “36.9. Provisional Article 13 added to Law No. 5520 by Article 11 of Law No. 7316 is as follows
- “Provisional Article 13 – (1) The rate of 20% in the first paragraph of Article 32 of this Law shall be applied as 25% for the corporate income of the corporations for the taxation period of 2021 and 23% for the corporate income of the corporations for the taxation period of 2022. These rates are applied to the earnings of the accounting periods starting in the relevant year for the institutions that are assigned a special accounting period.”
- Furthermore, by subparagraph (c) of Article 14 of Law No. 7316, the said provisional Article 13,
- It will enter into force on the date of its publication, starting from the declarations to be submitted as of 1/7/2021 and to be valid for corporate earnings belonging to the taxation period starting from 1/1/2021 (the accounting period starting from 1/1/2021 for institutions with a special accounting period),
- These rates will be applied to the earnings belonging to the accounting periods starting in the relevant year for the institutions that are assigned a special accounting period.
stated.
In this context, 25% corporate tax/temporary tax will be applied to the tax bases declared in the annual/temporary corporate tax declarations of corporate taxpayers for the taxation periods starting from 1/1/2021 for the taxation periods starting from 1/7/2021. For the 2022 accounting period, 23% corporate tax will be levied on corporate earnings.
Therefore, the provisional tax rate will be applied as 25% for the second provisional tax period of the 2021 accounting period starting from 1/1/2021 for taxpayers using the calendar year as the accounting period; and 25% for the provisional tax declarations to be submitted as of 1/7/2021 for the accounting periods starting from 1/1/2021 for taxpayers who have been assigned a special accounting period.”
The full Communiqué is available here.
Sincerely,
