What is Stamp Tax?
Stamp tax is regulated under the Stamp Tax Law numbered 488 ("Law"). The conditions under which this tax is deemed to have arisen are regulated under Article 1 of the Law. Pursuant to the relevant provision, it is stated in the table numbered (1) attached to the said Law which papers are subject to stamp tax at which rate or amount. In the table numbered (2) annexed to the Law, the papers exempt from stamp tax are stated. The term "papers" stated under the Law refers to the documents that are issued by writing and signing or putting a signature or a mark substitute for a signature and that can be submitted to prove or determine any matter, and the documents created in magnetic media and electronic data form by using electronic signature.
Is Payment of Stamp Tax Required for the Validity of an Agreement?
Payment of stamp tax is not a condition for the validity of an agreement. An agreement on which the stamp tax has not been paid is also legally valid. However, in order for this document to be submitted to an official authority and to take action based on this document, the stamp tax shall be paid.
Who is liable to pay stamp tax?
The taxpayer of stamp tax is the person who signs the papers in accordance with Article 3 of the Law. Parties may agree on how and by whom the stamp tax will be paid under the agreement. Pursuant to the relevant article, individuals pay the stamp tax on the papers pertaining to the transactions between official offices and individuals.
Pursuant to the related article, the tax of the papers issued in foreign countries and foreign embassies and consulates in Turkey shall be paid by those who submit these papers to the official authorities in Turkey, make transfer or endorsement transactions on them or benefit from their provisions in any way. However, the tax on commercial paper shall be paid by the persons who have previously sold, accepted or otherwise utilised such papers.
What is the Stamp Tax Payment Procedure?
The ways in which stamp tax can be paid are regulated under Article 15 of the Law. Pursuant to the relevant article, stamp tax is paid against a receipt, deduction from the ration or a printed stamp. The details of the procedure for payment against receipt are regulated under Article 22 of the Law.
Pursuant to Article 22/a of the Law, in the procedure of payment against receipt; the tax of the papers issued within a month by the taxpayers, institutions and organisations determined by the Ministry of Finance is notified to the tax office with a declaration until the evening of the twentieth day of the following month and paid until the evening of the twenty-sixth day. In other cases, the tax shall be notified to the tax office with a declaration within fifteen days following the date of issue of the paper and shall be paid within the same period.
Joint stock companies are obliged to keep a stamp tax book.
How Stamp Tax is Calculated in Framework Agreements?
Unless otherwise regulated under the Law, stamp tax will not arise from agreements that do not contain any price. In this context, if the framework agreements do not contain any consideration, stamp tax will not arise in the framework agreements. However, stamp tax will arise on other papers issued within the scope of the framework agreement and containing a price.
What is the Effect of the Applicable Law on Stamp Tax?
General information on the circumstances in which stamp tax arises is determined under Article 1 of the Law. Agreements signed outside Turkey are subject to tax only under certain conditions. Pursuant to Article 1/2 of the Law, papers issued in foreign countries and foreign embassies and consulates in Turkey are subject to tax if they are submitted to official offices in Turkey, if transfer or endorsement transactions are carried out on them or if their provisions are utilised in any way.
What is the Stamp Tax Calculation Model?
The amount and calculation method of stamp tax are explained under Articles 5, 6, 7 and 14 of the Law.
The calculation of stamp tax in case of more than one copy of the paper is specified under Article 5 of the Law. Pursuant to Article 5 of the Law, papers issued in more than one copy, each copy of those subject to fixed sum tax is subject to stamp tax in the same amount, and only one copy of those subject to proportional tax is subject to stamp tax. However, only the circulated copies of policies and commercial bills of exchange shall be subject to stamp duty.
The calculation of stamp tax in the event that there is more than one contract and transaction in a paper is regulated under Article 6 of the Law. Pursuant to Article 6 of the Law, if there are more than one completely separate contracts and transactions in a paper, tax is levied on each of them separately. However, if the contracts and transactions collected in a paper are interconnected and arise from the same original, the stamp tax is levied on the contract or transaction that requires the highest tax.
The calculation of stamp tax for papers with more than one signature is regulated under Article 7 of the Law. Pursuant to Article 7 of the Law, the fact that there is more than one signature on the papers does not require the duplication of the tax. However, pursuant to the relevant article, the stamp tax on receipts and release deeds, which are subject to lump sum tax and bear the signatures of more than one person, is levied according to the number of signatures.
The calculation of stamp tax in case of a change in the amount of an agreement is regulated under Article 14 of the Law. Pursuant to the relevant article, as a rule, in case of a change in the amount of an agreement involving a certain amount of money, the increased amount is subject to tax at the same rate.
Article 14 of the Law regulates whether or not stamp tax is payable in case of an extension of an agreement. Pursuant to the relevant article, if the agreement period is extended, the tax must be paid at the same amount and rate.
In which cases is a tax inspection carried out?
There may be many reasons for the taxpayer to be taken under tax inspection. Some of these reasons are that the taxpayer has been reported, the sector in which the taxpayer operates is examined, the possibility of tax evasion is considered high as a result of risk analysis, and the business with which the taxpayer has a commercial relationship is examined. However, it is always possible to conduct a tax inspection even without these reasons.
What is the Statute of Limitations for Stamp Tax?
Pursuant to Article 14 of the Tax Procedure Law, taxes that are not levied and notified to the taxpayer within five years starting from the beginning of the year following the calendar year in which the tax receivable arises are time-barred.
What is the penalty for non-payment of stamp tax?
Article 344 of the Tax Procedure Law ("TPL") stipulates the tax loss penalty for non-payment of stamp tax. According to the aforementioned provision, if tax loss is caused, a tax loss penalty amounting to one time the amount of the tax loss is imposed on the taxpayer. However, pursuant to Article 344 of TPL, the penalty to be imposed pursuant to this article shall be applied at the rate of fifty per cent for tax returns submitted after the expiration of the statutory period, except for those submitted after the commencement of the tax inspection or referral to the appreciation commission.
The special irregularity penalty to be applied in case of non-payment of stamp tax is regulated under Article 355 of TPL. Pursuant to the aforementioned article, a special irregularity penalty of 50% for lump sum taxes and 10% for proportional taxes shall be imposed on the stamp tax not collected for the papers for which the stamp tax has not been paid or paid incompletely.
In a situation where both the tax loss penalty under Article 344 of TPL and the special irregularity penalty under Article 355 of TPL should be applied, the conceptual aggregation rules will be applied in accordance with Article 336 of TPL and the heavier penalty will be applied.
In case of non-payment of stamp tax, it is possible for the taxpayer to avoid paying the penalty by taking advantage of the regret provisions in accordance with Article 371 of TPL in terms of tax loss penalty.
Article 24 of the Law explains who will be responsible for the unpaid tax and penalty. Pursuant to Article 24 of the Law; individuals are responsible for the declaration and payment of the tax on the papers related to the transactions to which they are a party, and those who submit the papers are also responsible for the tax and penalty that must be levied due to non-payment or underpayment of the stamp tax of the taxable papers, with recourse to the taxpayers.
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.
