Turkey has amended withholding tax responsibilities for parties
and intermediaries in taxable commercial transactions under the Tax
Procedural Code. With the change, the Council of Ministers becomes
entitled to enforce withholding tax responsibility against parties
to taxable transactions or intermediaries regardless of a range of
The Law on Supporting Investments on Project Basis and Amending
Certain Laws and Decrees numbered 6745 was published in Official
Gazette number 29824 on 7 September 2016 ("Amendment
Law"). The Amendment Law makes changes to withholding
tax provisions under the Tax Procedural Code.
The Council of Ministers is generally entitled to determine
different tax rates (between certain legislative thresholds) for
taxable transactions, according to work classes, work kinds,
sectors and commodity groups within the scope of its authority.
Under the Amendment Law, the Council of Ministers can now
enforce withholding tax responsibility against parties to taxable
transactions or intermediaries regardless of whether:
The payee is a taxpayer.
The payer or payment mediator is entitled to a tax cut.
The subject of the payment is sale and purchase of goods or
The subject of the payment took place in an electronic
The payee used the sum for discount in the tax assessment.
As a consequence to the amendments, the Council of Ministers
becomes authorised to regulate withholding tax deduction obligation
to intermediaries in commercial transactions concluded via the
Article 15 of the Corporate Tax Law (titled "Tax
Withholding") is amended to include the obligations under
Article 11(7) of the Tax Procedural Code as payment items, subject
to withholding tax.
Article 30 of the Tax Procedural Code (titled "Tax
Withholding in Limited Tax Payers") is also amended to the
effect that items under Article 11(7) of the Tax Procedural Code
are now included as incomes subject to withholding tax for limited
tax payer corporations.
Please see this link for the full text of the
Regulation (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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