What Are the Conditions to Benefit from the Tax Reduction? The primary requirement for taxpayers seeking to benefit from a tax reduction is that they have no outstanding tax debt. Income and corporate taxpayers who wish to claim the reduction must have filed the tax returns for the year to which the reduction applies and the two preceding years within the statutory deadlines. In addition, any taxes assessed on those returns must have been paid.
The Ministry of Treasury and Finance’s Communiqué amending the General Communiqué on Income Tax was published in the Official Gazette and entered into force effective January 1, 2020. Individuals subject to income tax due to commercial, agricultural or professional activities, as well as corporate taxpayers, must meet the conditions specified in the communiqué. Five percent of the tax computed on annual income or corporate tax will be deducted from the amount due or from corporate tax itself.
What Are the Requirements to Benefit from the Reduction?
What Are the Requirements to Benefit from the Reduction? To qualify for the five percent reduction, taxpayers must meet the following conditions.
- Tax returns for the year to which the reduction applies and for the two preceding years must have been filed within the statutory deadlines.
- There must be no additional assessments (ikmalen), re-assessments (re’sen) or administrative assessments for the returnable tax types within the specified period.
- All taxes shown as payable on the returns for the year of the eligible return must have been paid as of the return filing date.
- There must be no overdue principal tax debt exceeding 1,000 TRY, including tax penalties and related ancillary receivables.
- Those found to have committed the acts listed in the relevant article of the Tax Procedure Law in the year of the eligible return or in the four calendar years prior to that year are not eligible for this benefit.