Turkey: Draft legislation includes increased tax rates | KPMG | GLOBAL

Turkey: Draft legislation includes increased tax rates for companies, individuals

Turkey: Draft legislation includes increased tax rates

A draft tax law is intended to increase revenue collected by the government. The draft legislative measures were presented to the national assembly in late September 2017.

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Among the proposals are measures that would:

  • Increase the dividend withholding tax rate on profit of corporate taxpayers to a proposed rate of 1%
  • Increase the rate of corporate tax on income of financial institutions (banks, Islamic finance houses, brokerage firms) to 22%
  • Increase the rate of withholding tax on salaries in the third bracket to 30% (up from 27%)
  • Revise the value added tax (VAT) base that applies for motor vehicles
  • Provide that those entities holding concession agreements are that are authorized operators of mobile communication services would pay 15% of monthly gross sales as a “Treasury share”
  • Impose a flat rate of tax under the special communications tax
  • Increase the rate of transfer tax to 20% under the rules regarding games of chance and betting 

 

Read a September 2017 report [PDF 303 KB] prepared by the KPMG member firm in Turkey

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