The Proposal of the Law dated 5 July 2023, including the Tax Amendments, was submitted to the Presidency of the Grand National Assembly of Turkey.

The new law, which called additional motor vehicle tax to compensate for the economic losses caused by the earthquakes which occurred on 2nd of February 2023, amendments to certain laws and decree laws no 375 was submitted to the parliament. 

It includes significant changes to taxes;

• An additional motor vehicle tax (MTV) will be introduced for 2023, which will be applied only once. Tax payers will pay 2nd Payment of the MTV 2 times higher.
• The corporate income tax (CIT) rate has been risen by 5 points. The rate will be 30% for financial institutions and 25% for the other companies. (For now it’s %25 for financial institutions and %20 for the other companies) The new rates will be applied starting from the 3rd quarterly income tax period of 2023.
• By the partial demerger transactions, Immovables will be subject of income tax the after 01.01.2024 (they are tax free for now)
• The VAT exemption for real estate sales will be abolished. The exemption will continue as like before for real estates, which acquired before the law, and if they provided the conditions in the law are met.
• The corporate tax exemption for real estate sales has been abolished. The exemption will be applied at a rate of 25% instead of 50% for real estate acquired before the law. Therefore, taxpayers will experience a loss of rights at a rate of 25%.
• The corporate tax reduction for export earnings will be increased from 1 point to 5 points. The 1-point CIT reduction for production earnings will continue to apply.
• The exemptions applied to income obtained from other investment funds, except for venture capital investment fund units and venture capital investment trust shares, will be abolished.
• The special consumption tax on fuel products will be increased.