Statutory Book Certifications, E-Ledger Transition, Technopark Earnings Exemption Investment Obligation, and Other Developments

- 2024 Statutory Book Certifications. 9 days remaining

* The certification of the journal, general ledger, inventory ledger, stamp tax ledger, and board of directors resolution book to be used in paper format in 2024 must be completed by December 31, 2023

* If 2023 statutory books are to be continued to be used, intermediate certifications for 2024 usage must be completed by January 31, 2024

* The closing certification of the 2023 journal kept in paper format must be completed by June 30, 2024

by a notary public. Administrative fines of up to 49,276 TRY may be imposed on those who fail to obtain these certifications. Uncertified statutory books are not accepted as evidence in court, and VAT deductions and expense deductions will be disallowed

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- E-Ledger Transition Obligations: The following companies must start using e-ledgers on January 1, 2024. For this purpose, applications must be submitted with a financial seal or e-signature by December 31, 2023

* All companies with a 2022 gross sales revenue of 3,000,000 TRY or more

* For those trading goods and services in electronic environments (e-commerce), those with a 2022 gross sales revenue of 500,000 TRY or more

Companies meeting these aforementioned criteria in 2023 are required to transition to e-invoices on July 1, 2024, and to e-ledgers on January 1, 2025.

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- Companies operating in a Technopark that declared a Technopark earnings exemption of 1,000,000 TRY or more in their 2022 corporate tax returns are required to make investments equal to 2% of the amount declared in 2023. Eligible investment areas

* Capital contributions to startups in Technopark incubation centers

* Investments in Venture Capital Investment Funds (VCIF)

* Capital contributions to Venture Capital Investment Trusts (VCIT)

If the 2% investment is not made, corporate tax must be paid over 20% of the earnings exemption

The aforementioned obligation was amended on December 16, 2023. By Presidential Decree, the 2% investment requirement was increased to 3%, and the 1,000,000 TRY threshold was raised to 2,000,000 TRY. The Presidential Decree will enter into force on January 1, 2024

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- Certain VAT paid on imports cannot be deducted. By Presidential Decree, the right to deduct VAT paid on undeclared amounts stated in customs declarations for goods subject to surveillance practices in imports, as well as any taxes, duties, charges, and shares included in the VAT base arising from these amounts, has been abolished.

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- Individuals earning income via Social Media can tax this income without needing to establish a company (via withholding tax)

* A letter will be obtained from the Tax Office

* A special bank account will be opened with this letter (automatic tax deduction is required)

* Incoming payments will be linked to this account

* The bank will deduct 15% from incoming payments and make the remaining amount available for use

This application applies to income up to 1,900,000 TRY for the year 2023. If incoming payments from abroad exceed this threshold, establishing a company and invoicing the entire collected proceeds for that year to pay the corresponding taxes is required

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- The Rediscount Interest Rate (used for calculating CURRENT ACCOUNTS/ADAT) has become 41.75%. The Central Bank increased the rediscount interest rate for the 5th time in 2023

Date …………….. Rate %

24.06.2023 ……. 16.75

01.09.2023 ……. 26.75

28.09.2023 ……. 31.75

01.11.2023 ……. 36.75

01.12.2023 ……. 41.75

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- Tax Return Stamp Tax amounts have been increased. 2024 amounts:

Tax Return ……. Per Return ….… Annual Total

* VAT ……………….….. 308.36 TRY ……….. 3,700.32 TRY

* Withholding Tax …………...... 365.56 TRY ……….. 4,386.72 TRY (can be filed quarterly if the number of employees is below a certain threshold)

* Provisional Tax …………... 480.30 TRY ………. 1,921.20 TRY

* Corporate Tax …... 1,156.28 TRY ……..… 1,156.28 TRY

Total ………………………………………11,654.52 TRY

In other words, the stamp tax payable by an inactive company through tax returns can reach up to 11,654.52 TRY

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- 2024 KVKK (Personal Data Protection Law) Fines

Violation Subject …………………………. Minimum (TRY) …. Maximum (TRY)

* Violation of the obligation to inform ..… 47,303 TRY ……. 946,308 TRY

* Violation of data security ………….…….. 141,934 TRY … 9,463,213 TRY

* Non-compliance with the Board decision ………..……. 236,557 TRY … 9,463,213 TRY

* Failure to register with the registry ………………….… 189,245 TRY … 9,463,213 TRY

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- Deadlines regarding Invoices

* After the date of service and goods delivery … maximum 7 days

* If the 7th day following the service and goods delivery date falls in the following month … the last day of the relevant month without waiting for the 7 days

* If the 7th day of the invoice issuance period falls on an official holiday … until the end of the first following business day

* If the invoice issuance deadline under the Tax Procedure Law is exceeded, a penalty of 10% of the invoice amount may be imposed

* If the recipient does not object within 8 days of invoice issuance under the Turkish Commercial Code, the invoice shall be deemed accepted.

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- Obligation to employ Individuals with Disabilities

* Workplaces employing 50 or more workers

* Are obligated to employ 3% disabled individuals.

These individuals must be employed in jobs suitable for their vocational, physical, and mental conditions

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In Brief

- Credit for Strategic Investments. A limit of 100 billion TRY has been allocated for the credit fund, the details of which we previously communicated. For technology investments of 1 billion TRY and above, the Investment Commitment Advance Credit (YTAK) can be obtained. Applications started on December 20

- The additional 6-month support period in the 6111 incentive for foreign national employees has been abolished. If they have an indefinite work permit, they must renew their work permit documents every 5 years.

- Restaurants, cafes, and patisseries are required to display price lists at the entrance doors and on tables starting from January 1, 2024

- An independent audit report has been added to the requested documents for loans of 5,000,000 TRY and above to be granted by banks. The practice will start on January 1, 2024

- The Construction Rebar Tracking System (İDİS) becomes mandatory to use on January 1, 2024. It will be used for tracking construction rebars with GTIP code 7214.20. It will be used by construction rebar producers, importers, exporters, wholesalers, dealers, traders, and construction contractors. Many documents are required during registration, one of which is the "workplace license"

- The obligation for transporters to transmit UETDS data starts on January 1, 2024

* Legal entities holding K1, K2, K3, C1 certificates

* Real and legal entities holding C1, C3, L1, L2, N1, N2, T1, T2 certificates

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