Turkey

Value Added Tax

  • Within the scope of the coronavirus support package, VAT on domestic flights has been reduced from 18% to 1% for 3 months.
  • Due to the act of force majeure declared by the government on tax and social security declaration and payment dates, March/April/May 2020 VAT obligations have been postponed for individuals liable for income tax due to their commercial, agricultural or self-employment activities and for corporate taxpayers directly affected by the coronavirus (COVID-19) pandemic and who operate in certain sectors.(retail [including shopping centres]; healthcare services; furniture manufacturing; the iron, steel and metal industry; mining and quarrying; building construction services; industrial kitchen manufacturing, automotive manufacturing and selling; manufacturing of parts and accessories for the automotive industry; car rental; logistics and transportation [including warehousing activities]; artistic activities such as cinema and theatre; publishing and printing materials such as books, newspapers; accommodation [including tour operators and travel agencies]; food and beverage services including restaurants and coffee shops; manufacturing and trading textiles and apparel; and events and organizations, including public relations) Therefore, the March, April and May 2020 VAT declarations of the related taxpayers have been postponed to 27 July 2020.

Corporate Income Tax

  • The deadline to file a corporate provisional tax return for 2020 1st provisional tx period (January-February-March) and to pay the accrued taxes, has been postponed from 18 May 2020 to 28 May 2020.
  • The deadline to file a corporate provisional tax return for 2019, which was due by the end of 30 April 2020, and to pay the taxes accrued on these tax returns has been extended until the end of Monday, 1 June 2020.

Social Security Contributions or Payroll Tax

  • Employers in certain sectors can postpone the payment of their social security contributions related to the months April, May and June by 6 months. No penalty will be applied (applicable to the same sectors covered under the VAT deferral measure above.)
  • Due to the event of orce majeure declared by the government on tax and social security declaration and payment dates, March/April/May 2020 withholding tax (payroll tax) obligations have been postponed for individuals liable for income tax due to their commercial, agricultural or self-employment activities and corporate taxpayers directly affected by the COVID-19 pandemic and who operate in certain sectors (the same sectors covered under the VAT deferral measure above) Therefore, the  March, April and May 2020 withholding tax declarations of the related taxpayers have been postponed to 27 July 2020.

Additional comments

  • Revenue sharing payments and usufruct fees with respect to hotel leases will be postponed for 6 months for April, May and June.
  • The implementation of the minimum wage support will continue in 2020.
  • Firms that have fallen into default in April, May and June have a force majeure note in their credit registry.
  • Minimum pay-outs for pensioners will be increased to 1,500 Turkish lira from 1.000 Turkish lira and the government will make an early annual bonus payment to pensioners.

Authors

Picture of Döne Yalçın
Döne Yalçın
Managing Partner Turkey