According to the decree published in the Official Gazette, Turkey increased VAT rates from 18% to 20% and from 8% to 10%.

According to the decree published in the Official Gazette, Turkey increased VAT rates from 18% to 20% and from 8% to 10%.

Important tax changes were made in the Official Gazette dated 07.07.2023. These changes are listed item by item in the section below.

According to the decree published in the Official Gazette, Turkey increased VAT rates from 18% to 20% and from 8% to 10%.

The "Decision on Amending the Decision on Determining Value Added Tax Rates Applicable to Goods and Services (Decision No: 7346)" was published in the Official Gazette dated 07.07.2023 and numbered 32241. With this Decision, the Value Added Tax (VAT) rates applied to goods and services, which were 8% and 18% respectively, have been increased to 10% and 20%.

Additionally, it is stated that List (II) includes soap, shampoo, detergent, disinfectants, wet wipes (whether or not impregnated with soap, detergent, or solution), toilet paper, paper towels, paper napkins, and tissues. Goods subject to an 8% VAT rate have been removed from the relevant list, and it has been stated that the VAT rate applied to these goods will be 20%. The provisions of the Decision are executed by the Minister of Treasury and Finance and enter into force on 10.07.2023.

Other notable decisions: The Banking and Insurance Transactions Tax (BSMT) was increased from 10% to 15%. With Presidential Decree No. 7345, the Banking and Insurance Transactions Tax (BSMT) rate applied to consumer loans was increased from 10% to 15%. Taxes on games of chance were also increased.

With Presidential Decree No. 7347, the tax on games of chance was re-determined as 10% for mutual bets based on sports competitions, 14% for horse racing, and 20% for other games of chance. The permit fee for phones brought in by passengers was increased from 6,091.00 TL to 20,000.00 TL. One of the decisions in the newspaper showed that the registration fee for mobile phones brought from abroad was increased by 228% from the previous 6,091.00 TL to 20,000.00 TL. Turkey decided that dividend payments on own shares purchased only by companies traded on Borsa Istanbul are exempt from withholding tax.

Turkey decided that dividend payments on own shares purchased only by companies traded on Borsa Istanbul are exempt from withholding tax. With the change, the 0% withholding tax application on amounts deemed distributed dividends for own shares or acquired partnership shares of full taxpayer capital companies whose shares are not traded on Borsa Istanbul has been terminated. With the change, a 15% withholding tax application will be reintroduced for companies whose shares are not traded on Borsa Istanbul.

Lump-sum fees applied in 2023 have been increased by 50%.

With Presidential Decree No. 7344, the fixed fee amounts in the tariffs annexed to the Fees Law No. 492 have been re-determined, and the fixed fee amounts in the tariffs applied in 2023 have been increased by 50% (including the limits determining the minimum and maximum amounts of fixed and proportional fees).