08March2019

AMENDMENTS MADE WITH THE LAW NO.7166

7166 numbered the “Law on Amending Social Services and Some Other Laws” (the “Law”) has published in the 30694 dated Official Gazette. This Law has made some amendments on Environmental Law, Value Added Tax Law (“VATL”), Unemployment Insurance Law, Special Consumption Tax Law (“SCTL”,“ÖTVK”), Occupational Health and Safety Law and some other Laws. A new wage support incentive to the employers, some VAT and Special Consumption Tax (ÖTV) regulations are among these amendments.

Our explanations regarding some important amendments are as follows

1. MINIMUM WAGE SUPPORT INCENTIVE TO EMPLOYERS

The Art. 8 of the Law has made an addition to the Unemployment Insurance Law, so that the employers who seek to benefit from the 7103 numbered premium incentive, could benefit 3 months of min wage support incentive for the insured employees under 4/a who are employed between 01.02.2019 – 30.04.2019.

In order to use related min wage support:

  • The employee should be employed between 01.02.2019 – 30.04.2019,
  • The employee should work under 4/a clause of the 5510 numbered Law,
  • The employee should be employed in addition to the insured employees in the month/period in which min. insured employee has been declared of long-term insurance branch on 2018 January and December months/period,
  • The employee should work in the workplace for 9 months except for the termination of the contract with valid reason by the employer.

If the above-mentioned provisions are met, in addition to the premium support, the amount found with the multiplication of 67,36 lira with premium payment number of days for 3 months of period including the first employment month, shall be offset from the debts of the employer to the Social Security Institution.

2. VAT EXEMPTION FOR THE DELIVERY OF PRINTED BOOK AND PERIODICAL PUBLICATIONS

The Art. 7 of the Law has amended the VATL by including the delivery of printed books and periodical publications into VAT exemption, except for the ones that are sold with bagging. Thus, VAT shall not be applied for the delivery of printed book and periodical publications without considering the selling amount.

3. SPECIAL CONSUME TAX APPLICATION FOR CELL PHONES

According to the amendment brought with the Article 10 of the Law, a rearrangement is made in determining tax ratios of the 8517.12.00.00.11 G.T.İ.P numbered cell phones according to Special Consumption Tax assessment.

According to this:

8517.12.00.00.11 Portative (cellular) wireless telephones with receiver  
Special consumption tax assessment under 1.200 TL 25
Special consumption tax assessment between 1.200 TL and 2.400 TL 25
Others 25

In addition to this 25% SCT ratios mentioned above, the article 9 of the Law states that the President has the authority to increase the SCT ratios up to 50% and decrease the upper and lower limits of SCT assessments to 1/4 and increase up to quadruple.

4. PLASTIC BAG DECLARATION PAYMENTS

Article 3 of the Law has amended additional art.11 of the Environmental Law. Hence, the plastic bag declaration payments shall be made to related tax authority of which the payers are bonded with. The plastic bag declaration shall be made until the end of 24th day following the release day of the product.

Moreover, the Art. 4 of the Law regulates that the plastic bag declarations to be provided in 2019 January and February, shall be given as of 24.04.2019 (including this date) and re-acquiring shares shall be paid as of 30.04.2019 (until the end of working day).

You may reach the full text of the Law in Turkish from here.

Written by Seda Arıcı, Posted in Social Security Law and Regulations, Taxation Law, Workplace Health and Safety

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About the Author

Seda Arıcı

Legal Consultant | Attorney
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