Turkey has published secondary legislation outlining details of
new tax exemptions for young entrepreneurs and taxpayers whose
commercial income is determined via simple procedure. As a result,
from 10 February 2016, qualifying entrepreneurs under the age of 29
can be exempt from income tax for up to 75,000 TL worth of revenue
over the next three taxation periods (
more). Also, from 1 January 2016, taxpayers declaring
commercial income determined via simple procedure become eligible
to deduct 8,000 TL from their commercial income.
The General Communique on Income Tax (Registration No: 292)
("Communique") was published in Official
Gazette number 29703 on 5 May 2016. The Communique deals with the
articles which were recently introduced to the Income Tax Law by
Law No: 6663, Law Amending Income Tax Law and Some Other Laws which
was published in Official Gazette number 29620 on 10 February
If a taxpayer meets the criteria for both the exemption and
deduction, he or she is free to choose which benefit they prefer
(but cannot receive both).
From 10 February 2016 onward, if all of the following criteria
are met, up to 75,000 TL of an entrepreneur's income will be
exempt from income tax over the next three annual tax periods:
It is his/her first tax obligation for commercial, agricultural
or professional activity.
He or she is younger than 29 years of age as of the date the
tax obligation is established.
He or she either:
Works in person at their own job; or
Has management responsibilities.
He or she meets other requirements outlined in the
The Communique outlines these criteria in detail, with
If entrepreneurs begin operations as an ordinary partnership or
as a private company, each of them can benefit from the exemption,
provided they each meet the criteria. All parties must meet the
criteria otherwise it is not available, even if some parties do
meet the requirements. The exemption is not available if the
entrepreneur joins a partnership with an existing business or
Commercial income determined via simple procedure
For income generated after 1 January 2016, taxpayers declaring
commercial income which is determined via simple procedure become
eligible to deduct 8,000 TL from their stated commercial income
(Article 89(1)(15) of the Income Tax Law).
If a taxpayer who is taxed via simple procedure changes to the
real procedure for any reason in the same tax period, they are no
longer eligible for the deduction.
Please see this link for the full text of the
Communiqué (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Cyprus Tax Department recently issued Forms T.D 38, T.D 38Qa and T.D 38Qb applicable to individuals being Cyprus tax residents but non-Cyprus domiciled.
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