Tax Alert 1/2016  
 
 
Q1/2016 Double Taxation Agreement between United Mexican States and Turkey Entered into Force

As it is known, the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income has been signed between the United Mexican States and Turkey on December 17, 2013 (“DTT”).

The Grand National Assembly of Turkey approved the ratification of the DTT by Law No.6594 dated February 4, 2015 which was published in the official gazette dated February 20, 2015 and numbered 29273.

 
 

Q1/2016 Double Taxation Agreement between Republic of Kosovo and Turkey Entered into Force

As it is known, the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income has been signed between the Republic of Kosovo and Turkey on September 10, 2012 (“DTT”).

 
 

Q1/2016 The Grand National Assembly of Turkey approved the ratification of the Exchange of Information Agreement signed, within the scope of Foreign Accounts Tax Compliance Act, between the United States of America (“USA”) and Turkey

It has been announced on the official website of the Directorate of Revenue Administration on July 30, 2015 that the “Agreement on Increasing International Tax Compliance through Extended Information Exchange” (“Agreement”) was signed on July 29, 2015 in Ankara between Turkey and USA within the scope of Foreign Accounts Tax Compliance Act (“FATCA”).

 
 

Q1/2016 Interest to be collected due to Loans to be extended for the financing of the machinery and equipment is exempted from Banking and Insurance transaction Tax

With the addition of the sub para. (z) to para. 1 of Article 29 of the Expenditure Tax Code (“ETC”) (Law No.6802) (published in the Official Gazette dated July 23, 1956, No. 9362) by Article 1 of the Law no. 6655 (published in the Official Gazette dated January 1, 2016, No. 29580), interest to be collected due to Loans to be extended by financial institutions for the financing of the machinery and equipment, to be exclusively used in manufacturing industry, acquired by the industrial enterprises having the industrial registry certificate obtained pursuant to Industrial Registry Law No.6948 is exempted from Banking and Insurance transaction Tax.

Read More

 
 

Q1/2016 The Corporate Income Tax Communiqué No. 9 in relation to application of the Deduction on Capital Increases in Cash was published

As explained in our Newsletters (No.Q2/2015 and Q3/2015); through the amendment made on Article 10 of the Corporate Income Tax Law by the Law No. 6637, companies were provided with the right to deduct 50% of the interest calculated over capital increases made in cash from the corporate income tax base.

The principals and procedures with regards to the application of the above stated deduction right are regulated by the Revenue Administration of the Ministry of Finance through the issuance of the Corporate Income Tax Communiqué No. 9 (published in the Official Gazette dated March 4, 2016, No. 29643).

 

 
 

Q1/2016 The Value Added Tax rate and exemption in supply of fertilizer, raw materials used in the production of fertilizer and animal feeds

The Value Added Tax rate in supply of fertilizer, raw materials used in the production of fertilizer and animal feeds is reduced to 1% by the Council of Ministers through its Decree (Decree No. 2015/8353) (published in the Official Gazette dated January 1, 2016 and No. 29580).

Read More

 
 
buy her
 
     
  Tax Team  
 
 
 
 
 

The award winning Pekin & Pekin Tax practice team leaves regular compliance support to accounting firms and instead focuses on more complex cases, giving clients direct practical and innovative advice.

To discuss how these developments affect your business interests please contact either:

Fethi Pekin
Managing Partner
fpekin@pekin-pekin.com
or
Firat Yalçin
Partner, Tax
fyalcin@pekin-pekin.com

 

 
     
  learn more about our tax team  
     
 
 
 
     
This legal newsletter has been prepared for informational purposes only; it has not been prepared for advertising purposes or with the intention of creating an attorney-client relationship. It does not seek to provide information on all legal developments in Turkey with the quarter specified. None of the information contained in this legal newsletter shall constitute legal advice or anything akin thereto. To unsubscribe email the Editor: newsletter@pekin.pekin.com
 
  Tax Team | ABOUT | PRESS | CONTACT | MARKETING  
 
PEKIN & PEKIN 10 Lamartine Caddesi Taksim 34437 Istanbul Turkey | Tel: +90 212 313 3500 | www.pekin-pekin.com