Tax Increases (Corporate Tax, Motor Vehicle Tax, Special Consumption Tax) and Deadline Extensions

Corporate Tax (CT) rate permanently increased

- The CT rate, which was 20%, has been raised to 25%

- The CT rate applicable to banks and insurance companies has also been increased from 25% to 30%

- A 5% tax deduction rate will be applied to earnings derived from exports (previously it was 1%)

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Increase in Motor Vehicle Tax (MVT)

An additional motor vehicle tax has been introduced, equal to the amount of motor vehicle tax accrued for the year 2023, to be applied on a one-off basis

In other words, while you would normally be required to pay a total of TRY 2,000 in MvT in 2023, the total amount payable including the additional tax has become TRY 4,000

The additional tax can be paid in two installments, in August and November.

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Deadline extension for tax and SSI (Social Security Institution) payments

The deadlines for certain payments, which were due on 31.07.2023 (today), have been extended to the following dates

June SSI and restructuring debts … 03.08.2023

2023 Personal Income Tax 2nd Installment … 04.08.2023

2023 MVT 2nd Installment … 04.08.2023

Lump-sum, 1st Installment, and 2nd Installment under Law No. 7440 … 04.08.2023

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Employer minimum wage support increased to TRY 500

To benefit from the incentive

- SSI returns must be submitted on time

- SSI debts and installments must be paid on time

- The number of employees must be above the 2022 annual average

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VERBIS – Exemption threshold increased

The threshold of TRY 25 million has been increased to TRY 100 million

Real or legal person data controllers with an annual number of employees of less than 50 and an annual financial balance sheet total of less than TRY 100 million, whose main activity does not involve the processing of special categories of personal data, are exempt from the obligation to register with the Data Controllers' Registry (VERBIS)

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Second-hand vehicle sales price regulation

On online sales platforms, the prices of second-hand vehicles must be lower than the list price of the same vehicle as new

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In brief

- Special Consumption Taxes on Products Such as Gasoline, Diesel, and Natural Gas Were Increased

- The Period for Benefiting from Short-Work Allowance in Regions Where a State of Emergency Has Been Declared Was Extended by 3 Months

- Severance pay ceiling updated to TRY 23,489.83 (gross)

- Tax-exempt domestic per diem allowance amounts redetermined

- Real Estate Excluded from the Scope of Partial Demerger

- Tax exemption on real estate sales revenues was gradually abolished

- Exemptions provided for income derived by corporate entities from investment funds (excluding Venture Capital Investment Funds) were abolished

- The 25% cap on residential rent increases was extended until July 2024

- Advertising on Twitter (newly X) was banned by the Information and Communication Technologies Authority (BTK)

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