The Law Numbered 7194 on Amendment to Digital Services Tax and Certain Other Laws and Decree Numbered 375 was published.

With the Law Numbered 7194 on Amendment to Digital Services Tax and Certain Other Laws and Decree Numbered 375 (“Omnibus Law No. 7194”), a new tax package has been adopted and amendments have been made to various laws which was published at the Official Gazette dated December 7, 2019 and numbered 30971. While a new tax regime imposed on digital services are worthy of notice in the Omnibus Law No. 7194, current tax legislation was also amended. Accordingly;

i. Revenues generated from digital services, including intermediary services, carried out in a digital platform in Turkey are now subject to the digital service tax. Thus, digital service providers whose digital service revenues generated in Turkey are more than 20 million Turkish Lira or whose worldwide digital service revenues excess 750 million Euro shall be accepted as taxpayer within the scope of digital services tax. These taxpayers are obliged to pay a digital services tax at a rate of 7.5% on their revenues generated from the digital services. The taxpayers who do not comply with their obligations imposed by the Law on Digital Services Tax will be subject to sanctions, such as notice and announcement, by the Turkish Revenue Authority. In cases where these obligations are not fulfilled by taxpayers within 30 days as of the date of the announcement, access to digital service providers’ services will be blocked by the Information and Communication Technologies Authority and access providers, upon the proposal of Ministry of Treasury and Finance. These regulations on digital service tax will come into force as of March 1, 2020.

ii. In addition to the Law on Digital Services Tax, the Omnibus Law No. 7194 also introduced some material changes in the Expenditure Tax Law No. 6802, the Income Tax Law No. 193, the Tax Procedure Law No. 213, the Property Tax Law No. 1319 and the Insurance Law No. 5684. The amendments to the Property Tax Law No. 1319 entered into force upon the publication of the Omnibus Law No. 7194 and the amendments to other legislation will come into force in full by the first half of 2020.

You may reach full text of the law via the link below: https://www.resmigazete.gov.tr/eskiler/2019/12/20191207-1.htm

 

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