TAG Tax

The Turkish Government submitted a Draft Law on Amendment of the Law on Collection Procedures of Public Receivables and Other Certain Laws (“the Draft Omnibus Bill”) to the Turkish Parliament on 2 April 2021. According to the Draft Omnibus Bill, it is proposed that the rate of corporate tax will be applied at the rate of 25% for the 2021 financial year and 23% for the 2022 financial year.

The corporate tax was applied as 22% in Turkey for financial years 2018, 2019 and 2020 temporarily. The current corporate tax rate is 20% for the 2021 financial year.

We would like to state that, this Draft Omnibus Bill is approved by the related Commission in the Turkish Parliament. In this context, if the Draft Omnibus Bill enters into force, the rate of corporate tax will be increased to 25% for 2021 and 23% for 2022 financial years. According to the Commission Report, the corporate tax in the rate of 25% for 2021 financial year will be effective starting from the declarations to be submitted as of July 1,2021.