Gains derived by individuals from activities such as content creation on the internet, individual education, data processing, and product promotion on electronic platforms, as well as the income obtained by developers of mobile applications from application sharing platforms, will be exempt from income tax, and the scope of this exemption will be expanded. However, being exempt from tax does not mean that no tax will be paid; it is necessary to apply specifically and obtain an exemption certificate, and open a special bank account. The bank deducts 15% from the payments received into these accounts as tax on your behalf and transfers it to the government.
For taxpayers engaged in assembly, repair, construction, and transportation activities abroad, a flat expense deduction of 0.5% was applicable, assuming that obtaining documents for their expenses might be difficult in some countries. However, this practice has been discontinued. They were able to deduct expenses up to 0.5% of the foreign exchange revenue from exports, provided that it did not exceed the foreign exchange revenue.
The income tax and corporate tax exemptions applicable to service exports have been increased to 80%. This means that 80% of the income related to activities such as providing architectural, engineering, and accounting services to foreign countries will be exempt from taxation. Other income earners will calculate their income, excluding the income covered by this exemption. For example, if there is a gain of 100,000 TL, with 50,000 TL related to domestic buying and selling of goods and the remaining 50,000 TL related to exporting engineering services, tax will only be calculated on 10,000 TL of the latter.
Significant changes have been made for VAT Withholding, and there are important changes for VAT 2 as well. The deadline for declaration and payment of VAT 2, similar to VAT 1, which was until the 28th of the month, is now the 21st for the last declaration day and the 23rd for the last payment day. Additionally, if the tax declared with VAT 2 is not paid, the deduction of this tax in VAT 1 is now prohibited.
A confusing issue: even if a retired person actively works, they will receive a 5,000 TL bonus.
For the year 2024, the Tax Tariff Rates for Non-Salary Income have been updated as follows:
Up to 110,000 TL: 15%
Up to 230,000 TL: 16,500 TL plus 20% for the amount exceeding 110,000 TL
Up to 580,000 TL: 40,500 TL plus 27% for the amount exceeding 230,000 TL
Up to 3,000,000 TL: 135,000 TL plus 35% for the amount exceeding 580,000 TL
Over 3,000,000 TL: 982,000 TL plus 40% for the amount exceeding 3,000,000 TL.
For companies with features of anonymous and limited companies not present in Turkey, those who own 50% of the paid part of their capital will continue to benefit from a 50% income tax exemption, provided that the income is brought to Turkey until the time the company’s corporate tax return is submitted. The mentioned exemption will be applicable to income earned from January 1, 2023, onwards.
In 2023, companies with gross sales of 3 million TL and above, regardless of the sector, those engaged in online sales of goods or services, and those involved in real estate and car trading with gross sales of 500,000 TL and above, are required to transition to e-invoice as of July 1, 2024, and to e-ledger as of January 1, 2025. Companies with sales of 10 million TL and above, without distinction of sector, are also obligated to join the e-waybill system in 2023.
