Turkey


Tax Break For Companies On The Turkish Stock Exchange

Posted on November 20th, by Global Tax Weekly in Corporation Tax. No Comments

In Turkey, a corporate tax break for businesses that newly issue their shares on Borsa Istanbul has been approved.

With the exception of certain financial services companies, businesses which list their shares on the stock exchange for the first time will benefit from a reduced rate of corporate tax of 18 percent, down from 20 percent, for up to five years. Law No. 7256, published on November 17, 2020 provides that the measure will be offered for fiscal years beginning on or after January 1, 2021.

At least 20 percent of a company’s shares must be offered in order for the business to avail itself of the reduced rate.

An earlier iteration of the law was to include a provision allowing the president discretion to lower the corporate income tax rate by up to five percentage points. However, this provision was removed from … Read More »


Turkey Tops Tax Complexity Index

Posted on August 8th, by Global Tax Weekly in Corporation Tax. No Comments

A new index on tax complexity around the world was published recently, courtesy of TMF Group, the international professional services firm. There were few surprises therein. The top-end of the index featured the usual rogues’ gallery of fiendishly complicated tax systems, many of which were found in Latin America, where taxpayers often contend with three layers of taxation – federal, state/regional, and municipal.

The only surprise perhaps was that Brazil, infamous for its tax complexity, as noted here last week, wasn’t top of the overall league table. That unwanted accolade went to Turkey, mostly because of extensive local language and currency requirements, and a long and frequently changing tax code. In short, don’t think about navigating the Turkish tax code without the services of a knowledgeable local guide, according to TMF. Istanbul is no longer Byzantium by name, but the nation’s tax … Read More »


Seismic Changes In Turkey

Posted on July 27th, by Global Tax Weekly in Government, Parliament. No Comments

Reforming a country’s tax code can often be an agonizing process. Often, it starts with the formation of a panel of experts or parliamentarians, charged with studying various options for reform. Then, the panel will publish a report detailing where the tax system is failing, and proposing ways in which it can be fixed. The report will then be submitted to parliament or the government, upon which the finance minister will laud the great work and dedication of the panel and its chairman. Within a week of this, it’ll probably be forgotten about. Or, if a tax reform bill is eventually drawn up, it will be so divisive as to be virtually impossible to approve, with the result that it gets batted back and forth between lower and upper chambers, finance committees, and constitutional courts. Some members of the legislature … Read More »





RELATED ARTICLES AND INFORMATION

OECD Releases BEPS Action 14 Peer Reviews

On February 16, the OECD released the final batch of BEPS Action 14 peer reviews, on the efforts of 13 jurisdictions to improve how...

EU Reports On Brexit Impact

The EU has been mulling over the anticipated economic impact of the Brexit split. Releasing its Winter 2021 Economic Forecast, the EU suggested that...

India Reduces Time-Period For Investigations

The Indian Government has announced its intention to reduce the time-period during which the tax authority can probe an individual’s tax affairs. Under the...