Current Regulatory Developments - December 2022
Criteria for being subject to independent audit have changed
Companies that meet at least two of the criteria specified below for two consecutive years shall be subject to independent audit in the subsequent year. The criteria set forth below are effective as of January 1, 2023.
a) Total assets exceeding TRY 75 million
b) Annual net sales revenue exceeding TRY 150 million
c) Number of employees being 150 or more
Investment obligation for companies benefiting from R&D Center and Technopark incentives
Companies that utilized corporate tax exemptions of TRY 1 million or more in their 2021 Corporate Tax returns are required to invest 2% of the exempted amount into the instruments listed below by December 31, 2022. Otherwise, they will forfeit 20% of the corporate tax exemption they benefited from. This investment requirement will apply annually. The ceiling for 2022 is TRY 20 million.
a) Contributing capital to companies located in Technopark Incubators
b) Participating in Venture Capital Investment Funds (GSYF)
c) Becoming a shareholder in Venture Capital Investment Trusts (GSYO)
Blank Form Ba-Bs will no longer be submitted
An amendment has been made regarding the declaration of Form Ba-Bs. Blank Form Ba-Bs declarations will not be submitted.
New grant program announced by KOSGEB (KOBİGEL)
Eligible support items:
a) Personnel expenses
b) Machinery and equipment expenses
c) Software expenses
d) Service procurement expenses
Application deadline: January 11, 2023
Grants of up to TRY 2 million are provided for Digitalization in Manufacturing Industry, and up to TRY 1.5 million for increasing the competitiveness and efficiency of manufacturing SMEs.
KOSGEB support for TSE (Turkish Standards Institution)
Within the framework of the Business Development Support Program, KOSGEB will provide 80% support for certificates and services obtained from TSE under the Certification, Testing, and Analysis support for SMEs, up to a ceiling of TRY 300,000.
Upper limits of TÜBİTAK supports increased
Amounts for the following support items under the 1501, 1507, 1509, and 1511 support programs have been revised:
- Project drafting and report preparation support
- Promissory note transfer payment limit
- Concept Originator Researcher Award
- Budget threshold requiring project proposal presentation before TEYDEB committees
- Economic feasibility report budget threshold
Accommodation Tax takes effect as of January 1, 2023
- The rate is 2%
- Food, beverage, entertainment, activity, pool, and similar services provided along with overnight accommodation are also subject to this tax
- The VAT rate is 8%, and accommodation tax will not be included in the VAT calculation
- The declaration is due on the 26th of the following month, and payment can be made by this date
Monetary limits for Consumer Arbitration Committees redetermined
For the year 2023, applications up to TRY 66,000 may be submitted to Provincial and District Consumer Arbitration Committees. For amounts exceeding this threshold, applications must be made to the Consumer Court.
FX-Protected Deposits (KKM) – Extension of duration
The corporate tax exemption for foreign exchange gain income under the KKM scheme has been extended until the end of 2023.
e-Viz system introduced
The e-ledgers (general journal and general ledger) of companies undergoing tax audits can now be transmitted to tax inspectors electronically 24/7. Necessary audits will be conducted using software developed by the Ministry of Treasury and Finance. Designed to support tax inspectors, this software will generate reports detailing correlations and discrepancies among company records and accounts.
Execution of lease agreements in an electronic environment
Under the Action Plan for Combating the Informal Economy, initiatives to execute lease agreements entirely electronically have been incorporated into the action plan. We will inform you as further developments occur.
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Reminders
Revocation of SSI incentives for employers
Workplaces found, either by court ruling or through audits and inspections, to have failed to report employed individuals as insured (unregistered workers) or to have falsely declared individuals as insured who are not actually employed (sham insured persons):
- For 1 month upon the first determination,
- For a period of 1 year for each recurring violation within 3 years from the date of the first determination,
shall be disqualified from benefiting from social security incentives.
Reduction of wages
An employee's wage can only be reduced with their written consent. Continued work in silence despite a wage reduction does not imply that the employee has consented to the change.
Obligation to employ disabled personnel
Companies employing 50 or more employees are required to employ disabled personnel at a quota of 3% of their workforce.
(The obligation to employ ex-convicts had previously been abolished.)
- The threshold of 50 applies within the boundaries of the same province.
- In percentage calculations, fractional numbers are rounded up to the next integer.
- An administrative fine of TRY 5,917 applies for each unhired employee for each month.
Annual leave cannot be utilized during the notice period
If the employment contract is terminated by the employer (dismissal), annual leave cannot be utilized during the notice period. However, if the employee terminates the contract (resignation), this is treated differently.
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