Taxes Increased: VAT, Fees, Banking and Insurance Transactions Tax, and Gambling Tax
VAT rates have been increased
- Increased from 18% to 20%
- Increased from 8% to 10%
- No changes were made for the 1% rate
The VAT on cleaning products has been increased from 8% to 20%
Effective date: 10.07.2023
Cash register memory units will need to be updated
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Registration fees for mobile phones brought from abroad have been increased
The mobile device usage permit fee brought by passengers has been increased from 6,091 TRY to 20,000 TRY
Effective date: 08.07.2023
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General fees have been increased
Except for driver's license fees, the specific fee amounts applied in 2023 have been increased by 50%.
Includes Notary, Judicial, Land Registry and Cadastre, Consular, Passport, Visa, License, Diploma fees, etc.
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Banking and Insurance Transactions Tax (BITT) on loans has been increased by 50%
The Banking and Insurance Transactions Tax (BITT) applied to consumer loans has been raised from 10% to 15%.
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Gambling tax has been increased
- Increased to 10% for gambling games related to sports competitions
- Increased to 14% for horse racing
- Increased to 20% for other gambling games
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Apart from these, other tax increases currently being discussed and expected to be enacted soon
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Corporate Tax rate increase
Will be increased from 20% to 25% for corporations
Will be increased from 25% to 30% for banks and financial institutions
Will be applicable for 2023. It will take effect starting from either the 2nd or the 3rd provisional tax period
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Corporate tax exemption for profits derived from share sales is being abolished
The corporate tax exemption regarding earnings derived from participation shares and stocks of investment funds and partnerships—other than venture capital investment funds and venture capital investment trusts—is being abolished, ensuring that these earnings are subject to corporate tax
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Tax exemption on the sale of real estate is being abolished
There were exemptions for both Corporate Tax and VAT on the sale of real estate held in the assets of corporations for 2 years.
For real estate currently registered in the assets, the corporate tax exemption is being reduced from 50% to 25%, and there will be no exemption upon the sale of real estate acquired after the publication date of the law
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Motor Vehicle Tax will be doubled
It is not yet clear how the implementation will take place. Those who made advance payments will likely have to make an additional payment. It is also not yet clear whether this will be a one-time occurrence or permanent
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Special Consumption Tax (SCT) amounts are being increased
SCT amounts regarding fuel, tobacco, and alcoholic beverages are being increased
Both specific (maktu) amounts will be increased, and an inflation-indexing mechanism will be applied
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The President is being granted the authority to increase Recovery Participation Fees (GEKAP) up to twofold
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