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2023-70 / June 2023 Financial / Tax Bulletin

Find out the latest developments on tax regulation and be updated on regulatory changes along with their effects on your business through our tax bulletins. The important financial news of last month is briefly explained below.

We are glad to share these summaries with our clients and network. As a result of productive and comprehensive research, we present you the June 2023 bulletin.

Let’s briefly start with the headings and then examine the details. We will share information about Turkish economy in general, and the latest figures in labor, inflation, growth, main tax developments, social security obligations, banking and financial issues, R&D and incentives, and other issues below.

Main Economic Indicators

The balance of payments statistics for March 2023 is announced by the Central Bank

• The current account recorded a deficit of USD 4.484 million. Gold and energy excluded current account indicated net surplus of USD 1.372 million.
• Click to view the announcement.

Turkish Statistical Institute announced inflation figures for May 2023.

• Consumer price index increased by 39.59% annually and 0.04% monthly.
• Domestic producer price index increased by 40.76% on annual basis, by 0.65% on monthly basis.
• Click to view the announcement.

Turkish Statistical Institute announced the GDP for 1Q2023.

• The quarterly GDP has increased by 4.0% compared with the previous year.
• Click to view the announcement.

The Ministry of Treasury and Finance announced the foreign trade statistics for April 2023.

• According to the general trade system exports decreased by 17.1% and imports decreased by 4.8% in April 2023.
• According to the provisional data, produced with the cooperation of the Turkish Statistical Institute and the Ministry of Trade, in April 2023; exports were 19 billion 33 million dollars with a 17.1% decrease and imports were 28 billion 69 million dollars with a 4.8% decrease compared with April 2022.
• Click to view the press release.

The Ministry of Finance and Treasury announced the domestic borrowing strategy and debt statistics June – August 2023.

• Central Government Debt Statistics were published as well by currency, interest and instrument type.
• Click to view the domestic borrowing strategy.

Major Tax Issues

The one-time additional tax remains a controversial topic, and the taxpayer’s suit process is starting.

• We advise the taxpayers who are filing a tax return with reservation to consider their situations.
• Each company should evaluate their own situation and decide whether they should initiate a taxpayer’s suit.
• The case should be initiated within 30 days.
• For more information, you can read our publication
• The Taxia Disputes Team is available to assist you throughout the process.

The deadline for applications under Law nr. 7440 has been extended.

• The due date of the first installment has been postponed.
• Both the first and the second installments are due on the 31st of July.

Social Security

The regulations on home care aid have been published.

The application and payment deadlines for social security structuring has been extended.

• The application deadline has been moved from the 31st of May to the 3rd of July.
• The due date for the first installment has been moved from the 30th of June to the 31st of July.

The deadlines for submitting social security information, documents, and declarations to the Social Security Administration has been postponed for the regions affected by the earthquake.

Banking & Finance

The regulations on the calculation of net stable funding ratio for banks has been published.

• The regulations will be effective in 2024.

The communique on the principles for funds traded on the venture capital markets has been published.

R&D and Incentives

The tax exemptions applied to companies based in technology development zones have been altered with respect to OECD legislation.

• Companies should check their situations regarding their applicability to the new requirements and their utilization of the new ratios.

The regulations on small and medium sized businesses have been updated.

Commercial Regulations

The regulations on the clinical trials of man-made medical products have been published.

• In line with EU standards, the regulations aim to establish the principles behind proper clinical trials and the rights of the volunteers.

The regulations on the licensing of advanced treatment products have been published.

International Trade

The customs regulations have been amended.

Climate & Environment

The Ministry of Industry has published a draft of the communique on the principles of the application of green transformation program.

• The Ministry is collecting comments regarding the draft.
• The topic is relevant to the issue of climate change that has been greatly discussed for the past few years.
• The program aims to incentivize investments which are aligned with the cyclical economy approach of Turkey, protect natural resources, contribute to climate and sustainability goals, resource efficient, and have small carbon footprint.
• The investors should determine investment objectives which improve at least one of the following performance indicators measurable through quantity or ratio.
  • Energy consumption
  • Greenhouse gas emissions
  • Carbon footprint
  • Water footprint
  • Resource consumption
  • Waste amount
  • Water consumption
  • Wastewater contribution
  • Utilization of recycled resources
  • Other indicators as determined by the General Directorate.

Judiciary

The Supreme Court has ruled the refund of any penalties given during the Covid period.

• Previously, any unpaid penalties were forgiven but the already paid penalties were not refunded.
• Upon the objection of the 4th Administrative Court of Izmir, the clause regarding the non-refundable status of already paid penalties has been overruled.

Miscellaneous

President Erdoğan has announced the new cabinet during a press conference.

• Click to view the members of the cabinet.

Best regards,

Partners, Taxia