2020 Tax Restructuring

Circular History : 12.11.2020
Circular No. : 2020/36

 

Tax Configuration

The Unemployment Insurance Law, which includes regulations on the restructuring of tax and SSI premium debts and employment incentives, and the Proposed Law on Amendments to Some Laws, were adopted in the General Assembly of the Turkish Parliament. Although it has not yet been approved by the President and published in the Official Gazette, it is the subject of our circulations with the outlines of the law.

According to the law;

• 31 August 2020 and before tax liabilities can be structured and paid in 18 installments. Income Tax, Corporate Tax, Value Added Tax (VAT), Motor Vehicle Tax (MTV), Special Consumption Tax (SCT), all administrative fines, KYK debts, tax liabilities covering Treasury receivables can be configured. Those who want to pay their debt in advance will be given a discount.

 

• It will be within the scope of the configuration of all administrative fines such as data fines, late interest and late increases, traffic, elections, population fines, fines issued in accordance with the Road Transport Act, fines issued for illegal crossings of roads

 

• The student contribution loan and student loan debts, ecrimisils, unfairly received support payments, resource use support fund, contribution to the protection of immovable cultural assets can also be structured.

 

• Those who wish to benefit from the structure will have to apply by the end of the year from the date of the law and these debts can be paid in a maximum of 18 installments. The installments will be paid every two months. If an upfront payment is made by the first installment date, the processing interest will be deleted. The first installment payment will be made in January 2021.

 

• Social security premium administrative penalties, late penalties and interest hikes before August 31, 2020 can also be configured.

 

• The debts owed to the provincial private administrations, property tax, environmental cleaning tax, advertising and advertising tax, other taxes and fees, water, wastewater, solid waste fees, road participation shares, corporate receivables and raises and interest due to various fees can also be structured

 

dues payments of
• TOBB, TESK, Turkish Bar Association, TÜRMOB, exporters’ associations will also be included in the configuration.

 

• SGEB will receive dues with those arising from the support provided by the company, Receivables arising from altitude rights and leasing transactions related to the real estate of provincial private administrations, municipalities and their subsidiaries and more than 50 percent of their capital, the leases of the General Directorate of Foundations and the foundations, the receivables of development agencies from provincial private administrations, municipal and industrial chambers, and service fees of the Turkish Standards Institute will also be included in the configuration.

 

• Those who have been identified by the Social Security Agency before 31 August and finalized by the configuration deadline will also be able to benefit from the configuration.

 

• Farmers and forest villagers will also benefit from the

 

• The real estate leases left in the savings of the properties and the receivables arising from the altitude rights facility were also included in the configuration

 

• The debts owed by the municipalities and their subsidiaries to the General Directorate of State Water Works can also be restructured

 

• The farmers who owe money to the Credit Cooperatives and the forest villagers who use the loans will also benefit from the arrangement

 

• If those who benefit from unemployment benefits enter work within 90 days of following their departure and work subject to a 12-month non-stop service contract the long-term insurance premiums to be calculated for the period of unemployment benefit will be covered by the Unemployment Insurance Fund.

 

• Cumhur president will be authorized to extend the period of premium support provided to the employer for 12 months for persons employed in addition to the previous year’s average, and for 18 months if that person is female, young or disabled, and to apply Income Tax withholding incentives and Stamp Duty support to the employer who provides additional employment until December 31, 2023

 

• The effective date of the Esnaf Ahilik Chest application will be postponed from 1 January 2021 to 31 December 2023 due to the negative effects of the new type of coronavirus (Covid-19) outbreak. The president will have the power to extend the short-term work allowance until June 30, 2021.

 

• The period of premium support paid to the employee can be extended until 30 June 2021.

 

• Cumhur president will be able to extend the period of premium support paid to the employer and covered by the Unemployment Insurance Fund until June 30, 2021, if the insured who benefit from the short-term work allowance return to their normal working time

 

• In order to re-employ the unemployed and employ employees without notifying the SSI, the employment or service contract expires in the period 1 January 2019-17 April 2020, and if the employees apply to their last workplace without being notified to the SSI, and if they are actually employed by employers, employers will be provided with 44.15 liras per day to be deducted from all the premiums they will pay to the institution each month. For those who apply, 39.24 liras per day for those who are hired by the employer and take unpaid leave, and 34.34 liras per household per day will be provided for those who report that their application has not been accepted

 

• According to another provisional clause added to the Unemployment Insurance Law, the employer will be provided with cash wage support for each insured person it will employ in addition to the number of insured in the month or period of Ascak 2019-April 2020 to be deducted from all premiums it will pay to the SSI each month. In this context, the amount of support to be covered by the Unemployment Insurance Fund is projected to be 44.15 liras per day for the insured to be employed effectively from the date of employment, and 39.24 liras per day for those who will be placed on unpaid leave by the employer from the additional hires. The president will be authorized to increase the amounts of support and cash support at the minimum wage increase rate to be determined after the effective date of the articles.

 

• 50 percent of the earnings made by full taxpayer real persons within the scope of goods exports made by the Postal Administration authorized as indirect representatives under the Customs Code or by companies carrying fast cargo will be discounted from the revenues reported in the declaration. In order to benefit from this discount, those whose total revenues from exports are up to 400 thousand liras per year are insured themselves in the relevant year, those up to 800 thousand liras per year are insured themselves in the relevant year and employ at least one full-time or equivalent part-time worker, those up to 1 million 600 thousand liras per year will have to be insured themselves in the relevant year and employ at least two full-time or equivalent part-time workers, those whose total revenues from exports are up to 2 million 400 thousand liras per year will have to be insured themselves in the relevant year and employ at least three full-time or equivalent part-time workers.

 

• Real and legal persons who report money, gold, foreign currency, securities and other capital market instruments outside the country to the bank or brokerage in Turkey until 30 June 2021 within the framework of the provisions of this article, will be able to freely save such assets. These assets can be used to close loans from banks or financial institutions abroad that are registered in the legal books as of the effective date of the article until 30 June 2021 at the latest. In this case, the provisions of this article will be used without the requirement to bring them to Turkey for the assets used to pay the debt, provided that they are deducted from the ledger records. Taxpayers who keep books according to the Tax Procedure Law will be able to incorporate the assets brought to Turkey under this article into their businesses without taking into account the determination of period earnings, as well as withdraw the same assets from their businesses regardless of the determination of taxable earnings and debutable earnings for organizations If the real estates reported within the scope of this paragraph are placed in the operating records by putting them as in-kind capital, the provisions of this article can be used provided that the capital increase decision has been taken as of the date of notification and that the decision is registered in the trade register by the end of the tenth month following the notification date. Losses arising from the disposal of assets brought to Turkey or recorded in legal books will not be considered expenses or discounts in terms of income or corporate tax application. Due to these assets, there will be no tax review and tax history. In order to benefit from this provision, the reported assets must be brought to Turkey within 3 months from the date of notification or transferred to an account to be opened at banks or brokerages in Turkey. The president will be authorized to extend these periods by up to one year, with periods not exceeding 6 months at a time from the expiration date.

 

• By amending the Value Tax Law, the delivery period of the items to be used in the production of goods to be exported within the scope of the processing and temporary acceptance regime is extended until 31 December 2025.

 

• The vat exemption applied to the Ministry of Education for free delivery of computers and equipment, the delivery of software related to them and its services will be extended until 31 December 2023.

 

• • 2021 UEFA Champions League Final competitions will be played in Turkey, so UEFA will be exempt from VAT for the delivery and services of the participating football clubs and the legal entities involved in the organization to those whose workplaces, legal and business centers are not in Turkey

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• Independent employees on their behalf and account, and those who work independently on their behalf and account in agriculture, As of August 31, 2020 those who owe premiums will be stopped from paying premiums as of the end of the month when the premium payments are fully covered by the insured who have paid premiums if they do not pay their premium debts by the end of the second month following the date of entry into force of this article. Discontinued periods will not be considered as insurance periods.

 

• Refor the european football federations association (UEFA), participating football clubs and legal entities involved in the organization will be exempt from income and corporate tax if the workplace, legal and business center are not in Turkey due to their earnings and ambitions in Turkey regarding the playing of the UEFA Champions League Final competitions in Turkey

Best regards

YSS Consulting