Regulation on retirement pension and departure tax

The tax package presented to the Parliament by the AKP foresees an increase in the exit tax from 150 TL to 500 TL and the lowest retirement salary from 10,000 TL to 12,500 TL. With the proposal, international companies will pay a minimum corporate tax of 15 percent on the income they earn as part of their activities in Turkey. AKP Group Chairman Abdullah Güler presented the Bill of Law on Amendments to Tax Laws and Certain Laws to the Presidency of the Grand National Assembly of Turkey. The proposal, which foresees regulations in tax and social security legislation and certain laws, consists of a total of 53 articles, including the provisions for enforcement and execution. With the regulation, the lowest retirement salary has increased to 12,500 TL. Güler said, "If the lowest retirement salary is increased to 12,500 TL within the total number of retired people, which is currently around 16 million 180 thousand, with this regulation, 3 million people will be affected between July and December. The cost to the budget is 33 billion TL." The exit tax abroad has been increased to 500 TL Güler said that they have determined the exit tax abroad as 500 TL and that it will increase each year at the revaluation rate. 15 percent minimum corporate tax for global companies and 10 percent for domestic companies One of the most important articles in the regulation is about the Minimum Corporate Tax. In the regulation, domestic companies will add the exceptions and exemptions they receive to their current corporate tax bases and pay a 10 percent Minimum Corporate Tax on the resulting base. If the 25 percent corporate tax calculated by taking into account the exceptions and exemptions before the regulation is lower than the 10 percent minimum corporate tax in the new regulation, the higher will be collected. According to the regulation, a 15 percent minimum corporate tax withholding is also foreseen for the profits obtained by international companies from Turkey. The regulation also includes the collection of minimum income tax on the difference if the difference between the income and declarations to be revealed in the audits to be conducted regarding freelancers exceeds 20 percent. REIT regulation The regulation also includes an important regulation for Real Estate Investment Partnerships. Accordingly, REITs will need to distribute at least 50 percent of their real estate earnings as dividends in order to continue their corporate tax exemption. Otherwise, they will pay corporate tax. In the current practice, all earnings from production activities in free zones are exempt from corporate tax regardless of whether the products produced are sold domestically or abroad. However, this exemption will now be limited only to export revenues. Thus, tax will be collected from earnings from sales made domestically. The corporate tax rate for earnings obtained from these activities of institutions operating within the scope of public cooperation projects with the build-operate-transfer model will be 30 percent instead of 25 percent. Penalties for irregularities are increasing The proposal also includes regulations to increase efficiency in penalties. Penalties for irregularities and special irregularities are increasing. Heavy penalties are coming to those who use someone else's POS device and someone else's IBAN. Penalties will be imposed on those who accept payments through transfers made to someone else's account and those who allow others to use their accounts. The premium rate for short-term insurance branches was increased from 2 percent to 2.25 percent. In the regulation, the premium rate for short-term insurance branches was increased from 2 percent to 2.25 percent. According to another regulation, the practice of paying the 5-point social security support premium provided to the employer by the Treasury for those who were considered insured on or before September 8, 1999 and who were granted old-age or retirement pension for the first time, if they continued to work in the same workplace subject to social security support premium, was terminated.