Amendment to the General Communiqué on Corporate Tax

The circular regarding amendments to the General Communiqué on Corporate Tax by the Ministry of Treasury and Finance (Revenue Administration) was published in the Official Gazette. The circular regarding amendments to the General Communiqué on Corporate Tax by the Ministry of Treasury and Finance (Revenue Administration) was published in the Official Gazette. Accordingly, the following paragraphs have been added to the end of the section titled “Indexation in the amount of investment contribution”: “In the seventeenth paragraph of the 12th article of the Decision on Granting Project-Based State Aid for Investments, which was put into effect with the Decision of the Council of Ministers dated 17/10/2016 and numbered 2016/9495, it has been stipulated that partial completion can be carried out following the realization of a minimum investment expenditure of 5 billion TL for investments consisting of phases that provide integration and whose investment period is determined as minimum 10 years. Accordingly, the part of the investment contribution amount within the scope of the relevant incentive certificate that cannot be utilized until the end of the accounting period in which the partial completion transaction is carried out within the scope of the above article can be taken into account by increasing it at the revaluation rate determined for these years in accordance with the provisions of the Tax Procedure Law in the years following the accounting period in which the partial completion is carried out, limited to the investment contribution amount related to the partially completed section.” Use of investment contribution amount for electric motor vehicle manufacturers The President is authorized to allow taxpayers who manufacture electric motor vehicles in Turkey, which they have developed as a result of R&D activities they have carried out exclusively in Turkey in order to develop technologies that will completely eliminate exhaust gas emissions that create greenhouse effect, to use the investment contribution amount to which they are entitled within the scope of Article 32/A of this Law due to these investments, to the extent determined in the support decision, by paying the special consumption tax paid to the tax office until 31/12/2035 due to the initial acquisition of the goods in question, partially or fully, in cash or as an offset against their tax debts, as of three-month periods of the calendar year. The investment contribution amount within the scope of temporary Article 12 of the Corporate Tax Law cannot exceed 56.5% of the investment contribution amount entitled within the scope of subparagraph (ç) of the first paragraph of Article 3, to be used for a maximum of 960 thousand vehicles until 31/12/2032. The investment contribution amount determined within the scope of the first paragraph can be used by paying the special consumption tax paid for the initial acquisition of the vehicles produced within the scope of this investment to these taxpayers in full, in cash or as an offset against their tax debts, as of three-month periods of the calendar year.”