20January2021

A Reminder for Certain Legal Practices to Pay Attention in the New Year

With the Presidential Decree No. 3343, deadline for debt restructuring applications and for payment of first installments is 01.02.2021, within the scope of the Law No. 7256.
With the Presidential Decree No. 3343, for the taxpayers, who applied for debt restructuring within the scope of the Law No. 7256, deadline for the first installment of tax payments is 01.03.2021, and for the first installment of SSI payments is 31.03.2021.
With the Presidential Decree No. 2812, changes in VAT rates applied for certain goods and services are extended until 31.05.2021.

VAT rates of certain goods and services are reduced from 18% to 8%,
VAT rates of certain goods and services are reduced from 8% to 1%,
You can access our article regarding the sectors, which are subject to VAT rate changes from this link.
As of 23 December 2020, VAT rates of deliveries of Covid-19 vaccines approved by the Ministry of Health are reduced to 1%, until 31.12.2021.

With the Presidential Decree No. 3319, application of reduced tax deduction rate from 20% to 10%, in leasing real estates as per Income and Corporate Tax Law is extended until 31.05.2021.
It is necessary to submit and GEKAP declaration, regarding July-August-September-October-November-December 2020 period, and pay for the contribution share until 01.02.2021, 23:59.
Valuable Residence Tax application, published in the Official Gazette No. 31365, has come into effect on 01.01.2021.

"Valuable Residence Tax" has been issued as per 42^nd and 49^th articles added to Property Tax Law, within the scope of the Law Regarding Amendment on Digital Service Tax No. 7194 and Decree Law No. 375.
Submission of valuable residence tax declaration has become necessary as of 2021 for real estates in Türkiye which exceeds 5.000.000 Turkish Lira in 2020 value as per 29^th article of Property Tax Law.
Related amount, mentioned in 42^nd article of Property Tax Law, has been determined as 5.227.000 Turkish Lira for 2021.
Related declaration is required to be submitted to the tax office where the property is located, by the end of 20^th day of February.
Valuable property tax is necessary to be paid in two equal installments in February and August.

For joint-stock companies, Board Decision Ledger, Stamp Tax Ledger; for limited liability companies, Board of Directors Decision Ledger and Stamp Tax Ledger interim notarizations are required to be done by the end of January.

Should you have any queries or need further details, please contact us.

References

(Links are in Turkish language)