Tax bill passed, other bills to follow

The tax bill submitted to the agenda of the Turkish Grand National Assembly has been accepted by the General Assembly. Provisions on the taxation of stock exchange earnings and the payment of municipalities’ premium debts to the Social Security Institutions (SSI), which were initially included in the draft but omitted from the current tax package, will be addressed in a second bill after the Parliament’s summer recess.

After the Revenue Administration’s draft study was publicly announced, the tax bill package—introduced to the Turkish Grand National Assembly with some controversial regulations diluted—was approved by the General Assembly.

Some regulations from the initial draft, reported in the news and denied by economic authorities, will be revisited in different packages when the Turkish Grand National Assembly reconvenes in October.

Key Provisions and Future Plans

Taxation of Stock Market Gains:
Initially included in the draft but excluded from the current tax package, the taxation of stock market gains remains a significant issue. Although initially denied by government officials, Minister of Treasury and Finance Mehmet Şimşek has repeatedly indicated in public statements that this regulation will be part of future tax packages.

Payment of Municipalities’ SSI Debts:
The first draft revealed that over 3,200 municipalities and their affiliated companies owed approximately 55 billion liras in SSI debts. Recent statements by Minister of Labor and Social Security Işıkhan and President Erdoğan highlighted the accumulation of around 100 billion liras in debt. President Erdoğan emphasized that most of these debts belong to CHP municipalities and that there would be no concessions in their collection. It is proposed that these debts be deducted directly from the tax revenues allocated to municipalities.

Increase in the Lowest Pension

The bill includes an increase in the lowest pension to 12,500 liras, effective from July 1. The pension differences for those affected will be deposited in their accounts in August.

Global Minimum Corporate Tax

The regulation introduces a Global Minimum Corporate Tax, setting a minimum corporate tax rate of 10 percent for domestic companies. It also increases penalties for special irregularities in tax compliance, particularly for non-adherence to document regulations.

Foreign Exit Fee and POS Device Penalties

The bill raises the foreign exit fee from 150 liras to 500 liras and imposes higher penalties on businesses using someone else’s POS device and IBAN.

These changes reflect the government’s ongoing efforts to adjust fiscal policies and address economic challenges. Further details and additional regulations are expected to be discussed in the upcoming parliamentary sessions.