CERTAIN REGULATIONS IN THE OMNIBUS LAW PROPOSAL DATED 30.11.2018
The “Law Proposal on Making Amendments in Certain Laws and Statutory Degrees” presented to the GNAT (Grand National Assembly of Turkey) on 30.11.2018, will make new amendments with the goals of contributing to economic growth and increasing levels of income and welfare.
Certain clauses in the law proposal, which consists of 71 articles, are as follows:
-Receiving unemployment allowance shall be easier.
Stipulation of continuous work by paying premium of 120 days will be changed dependently with “service contract”. Status of not-payment due to discontinuity despite being subject to service contract for 120 days will be abolished.
-Emoluments for 65 years old will be increased
Pensions paid from senility and disability insurance which are knows as emoluments for 65 years old will be increased. When the legislative proposal becomes a law, emoluments will be raised to 1.000,00 TL by increasing almost 2 times.
-Intra-group borrowings will not be considered as an usury offence
The amendment in the 63rd article of the law proposal clarifies the discussions in doctrine and practice. Hereunder, companies who constitute a conglomerate, can provide loans to each other in accordance with the legislation on interests.
In the preamble of the related article; it is stated that situation is clarified in order to prevent considerations of usury by stating that loans provided by trader legal entities to other legal entities, which are affiliated with the former directly or through partnership, will not constitute an offence of usury.
-Soldiers’ families will have insurance
Proposal of law ensures that privates’ and officers’ spouses, children and parents who do not have health insurance, will now be considered as dependents.
Within the scope of the new amendment, application of incentives regarding tax basis, ratio and rudiments for the personnel; who are employed by more than one employers through their service contracts and subject to status of banks, insurance companies, chambers of industry and commerce; is abolished.
-Pilots will have tax exemptions
Monthly salaries of pilots and certified cabin crew who are employed by Turkish Aeronautical Association or civil aviation will be exempt from income tax of %70 over their net monthly salaries. (Public institutions and associations are excluded)
- Rental increases will be based on CPI (Consumer Price Index) increase rate.
- Revenues from the transactions of asset financing funds in the capital markets will be exempt from banking and insurance transactions tax (BSMV).
- Prior to the effective date of this amendment, exported or delivered turnip juice, drinking milk, baby and follow-on milk will not be taxed and fined in terms of special consumption tax (ÖTV) and VAT.
- Directorate General of Security staff will be required to participate in Police Care and Support Fund.
- State subsidies in housing accounts will increase from 20.000 TL to 25.000 TL. Annual increase in the maximum amount will be based on revaluation rate.
You can access to the full text of the proposal of law from here.