Tax Denunciations, KOSGEB Entrepreneurship Supports, New Generation Cash Registers, and Other Developments

Tax denunciations

Although it has been a part of our lives for a long time, it has recently started to appear frequently on social media. Subjects that can be denounced include:

- Low VAT application

- Failure to issue receipts or invoices

- Using another business's POS device

- Paying personnel wages in cash "under the table"

- Failure to declare rental income

- Underpayment of title deed fees

A reward of 10% of the tax and penalty assessed is paid to informants who report tax losses and evasion. Of this amount, 1/3 is paid to the informant when the tax and penalty become final, and 2/3 is paid when it is paid by the taxpayer to the tax office. Since this payment is gratuitous, it is subject to inheritance and transfer tax. Certified Public Accountants (YMMS) and Independent Accountants and Financial Advisors (SMMMS) are not paid this bonus.

Denunciation channels

- gib.gov.tr

- Digital Tax Office

- GIB Mobile

- Call center line 189

- X and Instagram denunciation accounts "gibihbar"

- WhatsApp denunciation line 0552-1890189

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KOSGEB entrepreneurship supports updated

Business establishment support: 10 thousand TL for sole proprietorships, 20 thousand TL for capital companies (an additional 10 thousand TL if the entrepreneur is young, female, disabled, a veteran, or a martyr's relative).

Personnel expenses support: 1 month's gross minimum wage cost amount for each year the employee is employed by the business for 3 years in supported sectors.

Business development support: In supported sectors, personnel expenses, machinery, equipment and mold expenses, software expenses, and service acquisition expenses will be supported up to 1.5 million TL. Repayments will start at an 80% rate and after 36 months (an additional 150 thousand TL if the entrepreneur is young, female, disabled, a veteran, or a martyr's relative).

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Tax delay interest increased

Delay interest, delay surcharge, and repentance surcharge became 4.5% monthly as of May 21, 2024 (the previous rate was 3.5% monthly).

Deferral interest was increased to 48% annually (the previous rate was 36% annually).

The default interest rate will be 24% as of June 1, 2024.

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Public disclosure of companies that do not pay taxes or have tax debts

Pursuant to the communiqué published on May 25, 2024, details regarding the Ministry of Finance's public disclosure of finalized tax amounts and penalties, as well as tax amounts and penalties overdue but unpaid, have been included.

Information to be disclosed:

- Name and title,

- Type of activity,

- Accrued tax amount,

- Tax offices to which taxpayers are affiliated.

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E-ledger and ledger berat (approval file) submission

E-ledger and berat files can be uploaded to GIB systems using the financial advisor's financial seal or electronic signature.

For this, the company must grant a letter of consent through the Digital Tax Office.

E-ledger berat submission periods have been extended by 10 days. Previously, congestion occurred because deadlines coincided with the end of the month. It can now be submitted until the 10th of the following month.

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Update in electronic applications

Updates have been made in e-archive invoice, e-self-employment receipt, e-producer receipt, and e-delivery note applications, and the changes will be implemented on July 1, 2024.

The following fields have been made mandatory collectively or separately based on applications:

- Signature time

- Tax rate

- Shipment information

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Conditions for being subject to independent audit updated

After January 1, 2024, companies that exceed at least two of the following 3 criteria in two consecutive accounting periods will be subject to independent audit:

- Total assets: 150 million TL

- Annual net sales revenue: 300 million TL

- Number of employees: 150 people

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New generation cash register (ÖKC) obligation starts on July 1, 2024

Old generation cash registers must be replaced with new ones.

The use of new generation cash registers with EFT-POS features is mandatory, and businesses will be obliged to make an agreement with at least one bank or payment service provider as of July 1, 2024.

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Attendance fees (Huzur Hakkı) up to the minimum wage are tax-free

- There is no income tax on attendance fees up to 17 thousand TL monthly and 204 thousand TL annually; amounts exceeding this are subject to tax.

- There are no social security premiums on attendance fees (subject to Bağ-Kur).

When an attendance fee equal to the monthly minimum wage is drawn, this amount can both be deducted from corporate tax (shown as an expense) and incurs no additional cost when withdrawn.

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Reminder regarding cash transactions

All payments and collections of 7,000 TL and above must be made through a bank or intermediary institution; meaning that no payments or collections above 7,000 TL can be made in cash.

In fact, if the contract price is above 7,000 TL and fractional cash payments below 7,000 TL are made on different dates, penalties will still be encountered.

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Reminder regarding automatic (compulsory) private pension system (BES)

- If the number of employees in the workplace is 5 or more, the business must transition to automatic BES in the following year.

- By law, the employer is obliged to contract with a pension company and include eligible employees in this plan.

- A 3% deduction is made from employees' salaries.

- Automatic BES is mandatory for those under 45 years of age.

- Cancellation of automatic BES is easy and can be cancelled after 2 months have passed.

- Upon changing jobs, the employee's existing BES is integrated into the pension plan operated by the new workplace.

- Automatic BES can be paused for a period not exceeding 3 months.

- Those who opt out of automatic BES can return to the system if they wish.

The deduction made is transferred by the employer to the pension company after the wage payment date.

Employees can leave the system within 2 months in a way that allows them to get back all of the contribution payments made.

If the employer fails to transfer the deduction made from the employee's salary to the pension company on time and in full, they will face an administrative fine of 911.40 TL for each person and for each month separately.

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Reminder regarding registration to VERBİS (Data Controllers Registry Information System)

According to 2023 data, companies meeting the following conditions will be required to register with VERBİS by May 30, 2024:

- Number of employees exceeding 50- Balance sheet total exceeding 100 million TL

In case of non-compliance with the obligation of registration and notification to VERBİS, the fine ranges between 189,245 TL and 9,463,213 TL.

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Reminder regarding ultimate beneficial owner information notification

The following companies are required to submit the ultimate beneficial owner information form within 30 days. The penalty for those who fail to submit this form within 30 days is 35,400 TL:

- Newly established companies

- Companies with changes in their partnership structure (share transfers or capital increases to include new partners)

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In brief

- Deadline for e-TUYS notifications of foreign-capitalized companies is May 31, 2024.

- Deadline for submitting Annex-4 form regarding the previous year's activities of liaison offices is May 31, 2024.

- Deadline for the 1st installment payment of 2024 property taxes is May 31, 2024.

- The Central Bank increased reserve requirement ratios applied to FX-protected deposit (KKM) accounts. The aim is to limit the growth of foreign currency loans.

- May inflation rate was announced as %xx.

- Accident report forms can be generated via e-Government. To use this feature, you will need to enable two-step verification in your e-Government profile.

- Those with tax and social security debts of 5,000 TL and above to SGK will not be able to participate in tenders as of October 1, 2024.

- If fixed assets not subject to depreciation are sold at a price lower than the amount calculated according to inflation adjustment and a loss occurs, this loss will be considered a non-deductible expense (KKEG) according to tax laws.

- The penalty amount to be imposed on employers who employ foreigners without a work permit is 56,752 TL for each foreigner.

- Changes were made to discounted withholding tax rates applied to income derived from deposit and participation accounts and certain securities.

- Current account (ADAT) interest rate became 51.75% effective from April 1, 2024 (the old rate was 44.25%).

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