The Mining Law was amended on 23 June 2010. In light of the new amendments, monetary fines related to mine transportation and mining activities that can benefit from incentives have been redetermined. Moreover, the compulsory Treasury fund regime has been re-structured under new rules.

The Draft Law on Amendments to the Tax Procedure Law envisages major changes with respect to tax investigations, procedures and impacts of tax rulings, notification procedures and penalties.  Recently, the authorized body for applications to obtain tax rulings was changed from the Turkish Revenue Administration to the Regional Revenue Administrations, whereby the latter is obliged to send its opinion to the former and obtain its approval prior to issuing tax rulings, jamming the tax ruling system leaving taxpayers unable to obtain tax ruling for months. It is expected that the Draft will provide a more efficient system which will allow taxpayers to obtain tax rulings within a reasonable time period.

In light of the amendment of the Income Tax Law (Law No. 193) in 2006, the tax incentive for investment allowance granted by Article 19 of the Law was abolished and a new temporary provision added to the law (Temporary Article 69), which envisaged an exception stipulating, “only investment amounts carried forward from previous periods or which have technical and economic integrity with investments started before January 1, 2006 can be deducted from the income tax bases of 2006, 2007 and 2008”, and that it was no longer possible to carry forward investment allowances that were unused as of December 31, 2008.

In this respect, such provision has been reviewed by the Constitutional Court, which has ruled that the said provision was contradictory to the “rule of law principle” and removed the said time limit from the Law by annulling the phrase “2006, 2007 and 2008”. Accordingly, taxpayers may carry forward investment allowance amounts within the scope of the exception from their income tax bases for the years after 2008.

The Ministry of Finance issued the Circular (No: 5084-2/2010-1) in relation to the Promotion of Investment and Employment on 3 March 2010. The Circular provides explanations on the time periods during which incentives for income tax withholding may be enjoyed for the purpose of investments, as stipulated in the relevant Article of the Law on the Promotion of Investment and Employment (Law No. 5084).

In January 2010, the Constitutional Court cancelled the reduced withholding tax rate of 0% applicable to capital gains realised by non-residents from the trading of securities in Turkey on the grounds that it causes inequality for resident investors who are subject to 10%. Following the said decision, rumours spread as to the upcoming legislation determining the new withholding tax rate on an equitable basis

On 3 April 2010, the Ministry of Finance finally put an end to the rumours to a certain extent by issuing a press release announcing that the new legislation will preserve the 0% rate for non-resident corporate investors and extend the application of such rate to resident corporate investors for equities and government debt securities (Treasury bills and Government bonds).

In 2009 the government signed Treaties regarding the Prevention of Double Taxation with Finland, Switzerland, Georgia, Yemen and Oman. For 2010 a widened scope of “data exchange” has been introduced with respect to the Treaty between Luxembourg and Turkey. All are expected to enter into effect within the first half of 2010.