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Due to the recent earthquake in the South-East a one-time additional tax, dubbed as the “Earthquake Tax,” is being levied from 2022 Corporate Tax returns. The tax doesn’t affect real persons, nor corporations who aren’t utilizing exemptions and discounts, or otherwise are not larger than a specific size for R&D and techno park firms.
As aforementioned, the implementation of the additional tax will consider the declarations made for the 2022 Corporate Tax return period. The additional tax will be levied whether the company has recorded profits or not in this period, but any discounts originating from retained losses from previous periods will not be considered.
A 10% partition of the basis of any exemptions discounted from the corporate tax will be levied, without regard to period it was realized in. Some important elements that are taxable in this regard are R&D discounts and premiums on issued shares.
A 5% partition of the revenues exempted at a minimum rate of 15% originating from overseas will be levied. For earnings derived from construction, repair, and technical services, in addition to earnings regarding the sale of stock from overseas partnerships, a 10% partition will be levied; should the revenue be documented to be taxed at a minimum rate of 15% overseas the 5% partition will be refunded.
The due sum will be paid in two installments. The first installment is to be paid during the corporate tax period, and the second installment is to be paid four months after.
For companies which follow nonstandard fiscal years, this calculation is to be done for the period ending in 2023.
If a corporate tax declaration had been filed prior to 12.03.2023 due to a corporate event, any exemptions and discounts declared in that filing will not be subjected to the additional tax.
Companies based in Adana, Adıyaman, Diyarbakır, Elazığ, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye, Şanlıurfa, along with companies classified as micro-cap and small-cap will be exempted from this additional tax. In addition, the following exemptions will apply.
Exemptions as outlined in the Corporate Tax Law Article 5 Part 1, clauses (d), (i), (j), (k) and Temporary Article 14, are not subjected to the additional tax. As such, any gains from exchange-rate adjusted certificates of deposits are not taxed.
Discounts as outlined in the Corporate Tax Law Article 10 Part 1, clauses (b), (c), (ç), (d), (e), (f), (g), (h) are not subjected to the additional tax.
The investment discounts subjected to withholding as outlined in Income Tax Law Temporary Article 61 are not subjected to the additional tax.
Additionally, discountable donations and aids are not subjected to the additional tax.
