Welcome to the high-level summary of Covid-19 related actions by the Turkish Government. The details and links below have been split between “Tax Filings Affected”, “Government Employee Wages Benefits Programs” and “Government Loan and Support Programs”; and are simply extracts from the more detailed information available on the websites of the Turkish Praxity Participant firms’ websites, links to which are available at the bottom of this page. Praxity Participant Firms in Turkey are Mazars and Yeditepe Bagimsiz Denetim A.S.
Tax Filing Affected
Tax Tracker Indirect Tax Measures
- The value-added tax declarations and payments have been deferred within the scope of the announcement made by the Revenue Administration. The deferment includes the companies that were considered under force majeure regarding their main areas of activity. Within the scope of procrastination, the payment periods of the VAT Declarations due by the end of 26/3/2020 and the payment periods of the taxes accrued on these declarations have been deferred to 24/4/2020. Moreover, the period of issuance of the VAT declaration due in April, May and June have been deferred until 27/7/2020; the payment periods for the accrued taxes on them have been extended to 27/October, November, December.
- During the period force majeure is declared, reverse charge VAT will not be applied for purchases within the scope of partial reverse charge by taxpayers that are within the scope of force majeure.
- Vat rate reduced from 18% to 1% for 3 months in domestic airline transportation. The period includes April, May and June. Corporate Income Tax measures
- In the General Communiqué prepared by the Ministry, the period of submission of the withholding tax return declarations in April, May and June have been extended until the end of July 27, 2020. In addition to this, the payments have been extended for six months for the taxpayers who are directly affected by the epidemic regarding their sector and main activities. The mentioned sectors are following: Retail Trade and Shopping Centers, Iron And Steel and Metal Industry, Automotive, Logistics Transportation, Cinema and Theatre Activities, Accommodation, Food and Beverage Services, Textile and Apparel Activities, Event and Organization, Health Care, Furniture Manufacturing, Mining and Quarrying, Construction, Industrial Kitchen Equipment, Car Rental, Printed Publication and Printing.
- The Recycling Participation Share' declaration and payment periods have been deferred for all companies until the end of July.
- The accrued tax payments based on the declaration and declarations for income taxpayers have been deferred from 31 March 2020 to 30 April 2020.
- The date of implementation of the accommodation tax has been postponed to 1 January 2021.
Government Employee Wages Benefits Programs
Employers Will Not Lay Off Employees For Three Months; However, it will be able to set free leave. Wage Support will be provided in the Free Leave Period
- Employers will not be able to terminate their employment contracts for three months from 4/17/2020 (except for cases that do not comply with the rules of ethics and goodwill and similar reasons); In addition, the employee who has been banned for termination can be made free leave by the employer.
- In the period considered as unpaid leave, the worker will be provided with a daily wage of 39.24 TL.
- Workers who were dismissed after 03/15/2020 and who could not benefit from unemployment benefits can also benefit from this wage support.
- Those who receive pension will not be able to benefit from this support.
- The President is authorized to extend the 3-month period up to 6 months. Being entitled to unpaid leave under this arrangement will not give the employee the right to terminate the contract for the valid reason.
Short Work Allowance Applications will be Processed and Payments will be Made Without Waiting for a 60-Day Review Period
- Short-time work payments will be made in accordance with the employers' declaration , without waiting for the completion of the conformity assessment, for the short-term study applied for reasons of compelling reasons made by the employers due to the corona virus (Covid-19) . However, over and undue payments due to the employer’s providing incorrect information and documents will be collected from the employer along with its legal interest. The regulation entered into force on 4.17.2020 to be implemented as of 2/29/2020.)
- This arrangement does not mean that the applications will not be examined later by İŞKUR inspectors! This arrangement should not create a false perception that everyone who will apply to İŞKUR will receive a short work allowance. The main requirement for applying for a short study is that the activity decreases or stops due to the corona virus epidemic, and therefore the working time in the workplace is reduced or the activity is interrupted.
Government Loan and Support Programs
Remote Working in R&D and Design Centers and Technoparks The activities carried out in the R&D and design centers and technology development zones can be carried out from the center or outside the region within the scope of the permission to be granted by the Minister of Industry and Technology, limited to 4 months as of 3/11/2020 . During this permit period, discounts, exceptions, supports and incentives will continue to be made within the scope of Law No. 5746 and Law No. 4691. (Effective on 4.17.2020, effective from 3/10/2020.) Postponing Water Bills for 3 Months Municipalities may postpone their water bill debts for residences, businesses whose activities are stopped or are not in operation for 3 months. Annual Ad and Advertisement Tax and Environmental Cleaning Tax The annual advertisement and advertising taxes and annual environmental cleaning taxes of the companies whose activities are stopped or cannot operate, shall not be taken into consideration, which correspond to the periods in which the activities are stopped or inactive.
Links to Our Member Firms
Further Covid-19 advice
The information contained herein on Covid-19 government measures within the G8, consists solely of information that can be found on the websites of one or more Praxity Participant firms, and has not been written, modified or verified by Praxity, it’s staff, officers or directors.