Social Security Agreement between Türkiye and Poland that was signed on 17 October 2017, has been approved by Türkiye President with the 9 numbered President Decision.

The highlights of the agreement can be summarized as follows:

With 2151 numbered Decision on Hidden Income Distribution by Transfer Pricing, there have been amendments made in the General Communique Regarding Hidden Income Distribution by Transfer Pricing published on the Official Gazette No. 31231, dated 01.09.2020.

Amendments are as follows.

• In order to be deemed to be within the scope of hidden income distribution, situations where a related person bond is formed through partnership, it is required to have at least 10% partnership, voting or dividend right,
• The term of advance pricing agreement is to be a maximum of 5 years,
• In cases of renewing advance pricing agreement is required, an application shall be made at least 6 months prior to agreement’s expiration date,
• Changing the expression "transaction-based profit methods" into "transactional profit methods",
• With the precondition of fulfilling documentation liabilities within the scope of Transfer Pricing, loss of tax penalty will be implemented with 50% discount for the tax loss occurred due to hidden income distribution,
• Preparation of general report, annual transfer report and country-specific report,

Due to Covid-19, cash wage support and termination ban have been extended by 2 months until 17 November 2020.

The decision regarding the extension was published by the President with decision report dated 4 Sep 2020 No: 31234.

You can reach the related decision via that link.

With the Presidential Decree No. 2913 dated 29/08/2020, which was published on the Official Gazette No. 31229 on 30/8/2020, Decision on Determination of Value Added Tax to be applied to Goods and Services have been amended.

Within the scope of the related decision; VAT rates of education services provided by foundation universities and academies, private educational institutions, institutions which conduct remote education, private education courses, vocational education and rehabilitation centers, social activity centers and similar educational institutions have been decreased from 8% to 1% between the dates of 01 September 2020 – 30 June 2021 (related dates are included).