Year-End Tax and Compliance Reminders

Technopark earnings exemption %3 investment obligation

In the 2023 corporate tax return, if the earnings subject to the exemption exceed 2 million TL, there is an obligation to invest 3% of this amount.

This investment must have been disbursed from your bank accounts by 31.12.2024.

Otherwise, a loss of tax advantage equal to 20% of the amount declared within the scope of the exemption may occur.

Areas where investments can be made:

- Capital injection to companies located in the incubation center

- Becoming a partner in Venture Capital Investment Trust (VCIT) companies

- Investment in Venture Capital Investment Fund (VCIF)

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e-Ledger transition

All companies subject to the balance sheet basis (sole proprietorships, joint-stock companies, and limited liability companies) will start using e-Ledgers in 2025.

Applications for the e-Ledger and system registration must be completed by 31.12.2024.

NVTS (National Vehicle Recognition System)

All vehicles owned or leased by the company assets (automobiles, motorcycles, trucks, construction machinery, etc.) must be included in this system.

Vehicle Recognition Units (VRU) obtained from the Mint must be mounted on the vehicles.

Electric vehicles are exempt from this practice.

The deadline is 31.01.2025.

After this date, fuel expenses incurred for vehicles without a mounted VRU cannot be deducted from taxes or treated as expenses.

Additionally, a fine of 20 thousand TL will be imposed if the VRU is not installed on the vehicle

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Independent audit obligation

Companies that exceed two of the following 3 criteria in consecutive two accounting periods for the years 2022 and 2023 will be subject to independent audit as of 2024;

- Total assets of 150 Million TL

- Annual net sales revenue of 300 Million TL

- Number of employees 150 people

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LPPC (Law on Protection of Personal Data)

If the company's annual number of employees exceeds 50 or total assets exceed 100 million TL, registration in the data controllers' registry (VERBİS) is mandatory.

Administrative fines ranging from 189,245 TL to 9,463,213 TL may be applied to data controllers who fail to fulfill their VERBİS obligation.

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OHS (Occupational Health and Safety)

- Workplaces in the hazardous and very hazardous classes are obliged to receive Workplace Physician and Occupational Safety Specialist services regardless of the number of employees.

- In workplaces in the low-risk class, if the number of employees exceeds 50 people, it is mandatory to receive OHS services.

- For workplaces in the low-risk class with fewer than 50 employees, the service obligation has been postponed until 31.12.2024. If there is no new postponement, these businesses will also be required to receive services starting from 01.01.2025.

- Hazard classes (low risk, hazardous, and very hazardous) are determined according to the company's NACE code.

- If the number of employees is over 250 or there are 100-150 female employees in the workplace, it is mandatory to have nurseries or breastfeeding rooms.

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Regulations entering our lives in 2025

- Minimum Corporate Tax. Companies with financial losses from previous years will first pay a 15% corporate tax when a period profit arises in 2025, and then previous year losses can be deducted.

- Carry-forward period of deductible VAT: The carry-forward of deductible VAT has been limited to 5 years. Starting from 2025, it can only be carried forward for 5 years.

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Potential Regulations

- Withholding tax on e-commerce. In sales made through marketplace platforms; withholding tax will be applied at 15% for capital companies (Ltd. and Inc.) and 25% for sole proprietorships. The withholding tax will be collected by the marketplace companies and declared to the tax office. Withholding tax amounts can be offset from corporate and income tax returns. However, it is anticipated that problems may occur in practice (such as canceled invoices, tax refunds).

- e-Inventory ledger. The inventory ledger, which is kept in paper format with notary approval, will be moved to the electronic environment.

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Reminders

- The cash payment limit has been increased from 7,000 TL to 30,000 TL.

- The revaluation rate was determined as 43.93%.

- Return stamp taxes for the year 2025 have been increased. For example, while the VAT and withholding tax return stamp tax will be 488.50 TL, the corporate tax return stamp tax will be 988.90 TL.

- Installment periods for installment purchases have been redetermined. For example, while the number of installments will be 48 when purchasing a vehicle under 400 thousand TL, a maximum of 12 installments can be made when purchasing a vehicle between 1.2 million TL and 2 million TL.

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