New Regulations Regarding Income Tax Refund on Cash and Account

Certain provisions have been amended in Income Tax General Communiqué No. 252 with Communiqué numbered 315, published in Official Gazette numbered 31620 and dated 06.10.2021.

New updates have been made in the Communiqué, which regulates the deduction of taxes applied through withholding from the income or corporate tax calculated on the annual return, and the refund of the remaining portion, deduction, and refund of temporary tax resulting from tax errors related to taxes.

By the recent regulation;

• Cash Refunds up to 50,000.00 - TRY; If the refundable cash amount is not exceeding 50,000.00 - Turkish Lira for the taxes deducted through withholding, cash refund requests are to be fulfilled without seeking an inspection report and a guarantee, on the condition that the refund request petition (1A) is submitted along with the required documents indicated in the section "Explanations Regarding Cash Refunds."
• Cash Refunds exceeding 50,000.00 - TRY; If the refundable cash amount exceeds 50.000,00 - Turkish Lira, the portion exceeding 50,000.00 - Turkish Lira will be refunded according to the tax inspection report to be prepared as a result of the examination to be made by those who are authorized according to the Tax Procedure Law, and the part up to 50,000.00 - Turkish Lira, if the refund request petition (1A) and its annexes are submitted in full, will be refunded without seeking a guarantee and without waiting for the inspection report.
• Cash Refunds to Be Received via Sworn-CPA Report; The portion of the cash refund request up to 500,000.00 - Turkish Lira can be refunded with a full certification report to be prepared by a sworn CPA who has a full certification service agreement with the taxpayer. Refund of the portion exceeding 500.000,00 - Turkish Lira will be executed after the inspection report to be prepared by those who are authorized.
• Cash Refunds that can be obtained under guarantee; Cash refund requests (above 50,000.00 - TRY or 500,000.00 - TRY) to be executed as a result of the inspection report can be fulfilled without waiting for the result if the taxpayers can provide a guarantee.

Bank letters of guarantee (indefinitely-unconditionally) must not have any restrictive conditions regarding the conversion into cash and must be issued by banks operating under the provisions of Banking Law No. 5411 dated 19.10.2005.

Provided guarantees will be resolved as per the result of tax inspection.

Provisions of the Communiqué are to be executed by the Ministry of Treasury and Finance.

The Communiqué is to be in effect as of the publishing date.

You can reach the Official Gazette via the link (In Turkish.)

Should you have any queries or need further details, please contact your customer representative.