25.06.2025 22:51
With the regulation approved by the TBMM (Grand National Assembly of Turkey) Planning and Budget Commission, it is anticipated that the possibility of determining different Special Consumption Tax (ÖTV) rates based on technical specifications of vehicles, such as engine displacement, range, and battery capacity, will be introduced. The regulation is expected to be approved by the Assembly next week.
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The bill regarding regulations on the economy, titled "Law on the Protection of the Value of Turkish Currency and Amendments to Some Laws," was accepted by the Planning and Budget Commission of the Grand National Assembly of Turkey (TBMM).
THE AIM IS TO STRENGTHEN TAX JUSTICE
The law proposals accepted in the TBMM Planning and Budget Commission aim to combat unregistered economy, strengthen tax justice, limit discounts and exemptions, increase the share of direct taxes in tax revenues, prevent disputes, and enhance legal certainty.
EXEMPTION FROM VAT WILL BE APPLIED
After the discussions on the bill, three new articles were added to the proposal. With the new regulation added to Article 13 of the Value Added Tax (VAT) Law, motor vehicles listed under the "vehicles used for cargo transport with a maximum weight not exceeding 3.5 tons and passenger transport capacity below 50% of the load capacity (excluding all-wheel drive vehicles, passenger cars, station wagons, racing cars, and off-road vehicles)" in the annex II of the Special Consumption Tax (ÖTV) Law can be exempted from VAT when delivered to the Ministry of National Defense, the Ministry of Interior, the Presidency of Defense Industries, and the National Intelligence Organization for national defense and internal security needs.
PENALTIES AND SANCTIONS WILL BE APPLIED
A new clause was added to Article 17 of the Law on Amendments to the Law on the Market of Liquefied Petroleum Gases and the Electricity Market. Accordingly, administrative penalties will be restructured, and administrative fines and sanctions may be imposed on those who act against the prohibition of LPG trade.
A temporary article was also added to the Decree Law on the Provision of Research, Development, Innovation, and Entrepreneurship Activities by the Ministry of Industry and Technology. Accordingly, it is expected that the Minister of Industry and Technology will be authorized to make payments from the budget allocated for the activities carried out by the Turkish Space Agency regarding space and aviation science and technology until December 31, 2025, to the Defense Industry Support Fund.
THE PRESIDENT WILL HAVE THE AUTHORITY TO INCREASE OR DECREASE TARIFFS
With the bill, which has been increased to 24 articles and foresees amendments to 13 laws, a comprehensive change was made in the third article of the Law on the Protection of the Value of Turkish Currency, clarifying administrative penalties for unauthorized activities and introducing the application of the maximum administrative fine in case of recurrence within five years.
Article 4 of the Law on the Protection of the Value of Turkish Currency has been completely revised, proposing the requirement to obtain permission from the Ministry of Treasury and Finance for engaging in foreign exchange trading for commercial purposes, operating as a member in the Precious Metals and Precious Stones Market of Borsa Istanbul, and conducting precious metal refining activities. Additionally, the authority to increase or decrease the tariffs related to these permits will be granted to the President.
OVERTIME PAY
Changes are being made to the indicator figure used in calculating the overtime pay for personnel of the Revenue Administration's provincial organization. With the amendment to the relevant article of the Tax Procedure Law, the indicator figure used in calculating the overtime pay for personnel of the Revenue Administration's provincial organization will be increased from 160 to 300, and the proportion of personnel who can benefit from this payment is aimed to be raised from 20% to 40%.
With the regulation added to the Value Added Tax Law, it is aimed to exempt from VAT the transfers and deliveries that occur through the sale of real estate owned by foundations under the General Directorate of Foundations and the managed foundations by this institution.
REGULATION ON THE INCLUSION OF ÖTV IN VAT BASE
With the amendment made in VAT, it is aimed to prevent some taxpayers operating in the fuel sector from making different attempts to avoid paying value-added tax and to ensure that the value-added tax corresponding to the special consumption tax amount is collected at the import stage. A regulation is aimed to be made regarding the inclusion of the special consumption tax, calculated and secured for the import of goods listed in the annex of the Special Consumption Tax Law, in the VAT base.
LIMITATION ON SALARY AMOUNTS
With the proposal, new regulations are also coming for the tax withholding of personnel working in R&D, technology development zones, design and support personnel, and those working in research infrastructures. The amount of salary that can be evaluated under the income tax withholding and stamp tax exemption for R&D, design, and support personnel will be limited to 25 times the monthly gross minimum wage. Again, with the regulation made, the amount of salary that can be subject to exemption for R&D and support personnel working in research infrastructures is expected to be limited monthly by a certain multiple of the gross minimum wage to prevent unlimited use.
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IT IS BEING GIVEN TO THE MINISTRY OF INDUSTRY AND TECHNOLOGY
With the amendment to the provisions added to the Law on Industrial Zones, the authority of the Ministry of Industry and Technology regarding the addition of areas to industrial zones established by presidential decree and the reduction of existing areas is clarified. The regulation grants the Ministry the authority to add areas to industrial zones. Additionally, due to ownership, geologically hazardous areas, restrictive opinions from relevant institutions regarding construction, protection boundaries, and similar technical reasons, there may be a need to reduce the existing area during the preparation of the zoning plan, thus the authority to remove areas is aimed to be granted to the Ministry.
EXEMPTION FROM ÖTV IS INTRODUCED FOR LAND VEHICLES
With the regulation made in ÖTV, it is aimed to introduce an exemption from ÖTV for land vehicles and motorcycles that do not have domestic production of sufficient quality to meet the needs of national security organizations, namely the Ministry of National Defense, the Ministry of Interior, the Presidency of Defense Industries, and the Presidency of National Intelligence Organization, which will be purchased and used for national defense and internal security purposes, with a domestic contribution rate of at least 40%.
ÖTV RATES ARE REGULATED BETWEEN 80% AND 220%
With the amendment to Article 12 of the ÖTV Law, it is expected that the authority granted to the President will be expanded, allowing for the determination of different ÖTV rates based on technical characteristics such as the engine displacement, range, and battery capacity of vehicles. With the proposal, it is aimed to redefine the ÖTV bases applied to gasoline-powered passenger cars in a way that will not affect the prices formed under market conditions and will be in line with current ÖTV rates. With the change in the proposal, the ÖTV base thresholds and rates, and the ÖTV rates to be applied based on engine displacement and electric motor power, are regulated between 80% and 220%.
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