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Certain Amendments Have Been Made Through Omnibus Law

Certain Amendments Have Been Made Through Omnibus Law

New amendments have been made with the Law on Amending Certain Laws and Restructuring of Certain Debts No. 7256, dated as 11 November 2020, and published in the Official Gazette No. 31307 dated 17 November 2020.

While the definite public and certain other receivables were restructured within the scope of the mentioned Omnibus Law, a new repatriation of assets was brought. Also, amendments have been made which can affect Income Tax Law, Corporate Tax Law and Value Added Tax Law considerably.

Details on debt restructuring are as below;

  • Restructuring of receivables up to 500 billion TL, encompasses receivables before 31st August 2020.
  • Those who want to benefit restructuring can apply until the end of 2020.
  • If debts are paid in first installment, 90% of the late interest will be cancelled.
  • Within the scope of restructuring, installments will be paid in every two months and can be split into 18 months.
  • Payments regarding the Ministry of Treasury and Finance will start in January 2021.
  • Payments to be made to SSI will start in February 2021.

Amendments made in other regulations are as below;

  • With a change in the Law on Value Added Tax, the delivery period of materials to be used in the production of goods to be exported under the inward processing and provisional acceptance regime was extended until December 31st, 2025.
  • Due to 2021 UEFA Champions League Final contests to be played in Turkey; services and delivery of goods belonging to UEFA, participating football clubs and the business of the attendant entities in the organization, those without legal business center in Turkey have been granted VAT exemption.
  • Application of artisans' association has been delayed to 31st December 2023.
  • VAT exemption in free of charge deliveries of computers and hardware to the Ministry of Education, related software and services is extended to 31st December 2023.
  • Effective date of accommodation tax has been postponed to 1 January 2022, from 1 January 2021.
  • General assembly meetings of Cooperatives Law, the Law on Veterinary Services, Plant Health, Food and Feed Law, Producer Unions and Seed Growing Law may be postponed.
  • Those who sell their home produce online were exempted if they meet the legal requirements.
  • The provision regulating the deduction of 20 percent income tax on payments made to jockeys, jockey trainees and trainers participating in competitions organized by the licensee or the person authorized by the licensee was extended until December 31st, 2025.
  • Natural persons and legal entities' abroad located money, gold, foreign exchange, securities and other capital market instruments declared until 30 June 2021 to banks or intermediary institutions in Turkey and will be able to freely gain savings in these assets. Due to these assets, no tax inspection and tax assessment will be made under any circumstances.

Related decision can be accessed from here. (The link is in Turkish.)

For further details, please contact your Customer Representative.

Written by Selma Kıy, Posted in Taxation Law

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About The Author

Selma Kıy

Certified Public Accountant - SMMM
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