Category Taxation in Turkey

Turkey Hikes Taxes

September 29, 2017 Taxation in Turkey

Tax hike in TurkeyISTANBUL – The government of Turkey is instituting a range of tax hikes, raising the rate on personal incomes, corporate incomes, car prices, and lotto winnings.

On September 27th, the Naci A?bal of the Ministry of Finance of Turkey announced that the government will seek to introduce a number of new tax hikes in order to boost the national military budget.

If the new changes are approved, the income tax rate faced by businesses in the finance sector will rise from the current rate of 20 percent to a new rate of 22 percent.

Personal income tax will also rise, with the rate on the third income tax bracket rising from 27 percent to 30 percent.

The taxes on motor vehicles will also rise significantly, increasing by 40 percent.

Further, the taxes on cars will see an extra levy charged next ...

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Turkey to Hike Tax on Electronics

July 3, 2015 Taxation in Turkey

ISTANBUL – Computers, mobiles and tablets in Turkey will soon become more expensive, as the government turns to taxes to help align the current account deficit.

During a press conference on July 6th the Finance Minister of Turkey indicated that within two months’ time the national government will hike the rate of tax applied to the import electronic goods into the country.

The Minister explained that the import of high-end electronics, such as tablets, telephones, and personal computers, is a significant contributor to the country’s current account deficit.

The new tax measure is intended to help realign the deficit, and is expected to work hand-in-hand with the government’s recent launch of a new program aimed at encouraging greater levels of exports of electronics from Turkey.

Re...

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Cigarette Taxes Encourage Smuggling In Turkey

January 6, 2015 Taxation in Turkey

ISTANBUL – Tax hikes on cigarettes in Turkey are helping increase the demand for smuggled cigarettes from Iraq and Syria.

In a written statement issued on January 2nd the head of the Confederation of Turkish Craftsmen and Tradesmen (TESK) Bendevi Palandöken claimed that the annual increases to the rate of taxes on cigarettes and alcohol need to be frozen, as the hikes are leading to an increase in the smuggling.

At the start of the year the tax applied to the sale of tobacco products was increased from TRY 0.13 per pack of cigarettes, to a rate of 0.1866 per pack of cigarettes, while the rate of tax on beer and wine was hike by 15 percent and 16 percent respectively.

According to Bendevi Palandöken, the increases in tax rates will result in one quarter of all cigarettes in the country b...

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Turkish Tax Amnesty a Booming Success

August 2, 2013 Taxation in Turkey

TurkeyANKARA – The Turkish government has extended the period of a tax amnesty program by two months, after it led to a TRY 1 billion rise in tax revenues.

Over the last two months, Turkish taxpayers have utilized a tax amnesty program to declare more than TRY 50.5 billion worth of assets, capitals and funds previously hidden abroad, according to a statement issued on August 1st by the Turkish Ministry of Finance.

Due to the success of the amnesty, the Turkish government has announced that the program will be extended by another two months to October 31st, despite originally being scheduled to end on July 31st.

Under the conditions of the the current tax amnesty, Turkish taxpayers declaring and returning any previously undisclosed assets or capitals hidden abroad will pay a tax of only 2 percen...

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Turkey Eyes Repatriation Tax Break

April 26, 2013 Taxation in Turkey

Recep Tayyip ErdoganISTANBUL – Turkey is looking to claw back over TRY 130 billion in funds via a new amnesty program which encourages reparation of funds which are currently held overseas.

On April 24th a new bill was tabled in the parliament of Turkey, setting out a proposal to enact new regulations for the repatriation of capitals and assets held overseas by Turkish taxpayers.

Under the newly proposed rules, funds brought into the country by local taxpayers will be taxed at only 2 percent.

According to the Prime Minister of Turkey Recep Tayyip Erdo?an, the government will not conduct investigation into the source of funds when they are declared, and no further investigations will be launched in the future in regards to the repatriated capitals.

It is expected that the loosened rules will lead directly to t...

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