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 31^st 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.

New regulations came into force for employers and employees with the Law No. 7256 published in the Official Gazette, dated 17 Nov 2020, numbered 31307.

Important Points Regarding the Additional Employment Incentives as per the New Regulation

For those who benefit from unemployment benefits, long-term insurance premiums to be calculated for the period they benefit from the unemployment benefit will be covered by the Unemployment Insurance Fund, if they are employed within 90 days following their termination, work subject to uninterrupted service contract for 12 months and make a request.

The President has been authorized to extend the Employment Incentive practice of Young, Women and those with professional certificates until 31/12/2023.

The President has been authorized to extend the additional employment support in the provisional article 19 of the Unemployment Insurance Law until 31/12/2023.

The President has been authorized to extend the income tax withholding incentive and stamp tax support provided to private sector employers who provide additional employment in accordance with Law No. 7103 until 31/12/2023.

The effective date of the Tradesmen's ahi-order Fund application has been changed as 31/12/2023.

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,

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).