background image
Turkey 2020 Tax Reform Plans Include Corporate Rate Cut and Digital Services Tax — Orbitax Tax News & Alerts

The Turkish Government is reportedly working on proposals for several tax reform measures for 2020, including:

  • A reduction in the general corporate tax rate from 22% to 20%, with a further reduction to 18% for non-financial institutions from 2021;
  • The expansion of the number of individual income tax brackets from four to seven, including a top bracket rate of 40% for income exceeding TRY 500,000;
  • The introduction of a 7.5% digital services tax (DST) that would apply for MNE groups meeting a EUR 750 million annual revenue threshold with digital sales of at least TRY 20 million in Turkey;
  • An increase in the tax rate on certain foreign exchange transactions from 0.1% to 0.2%; and
  • The introduction of a 1% property tax on residences and hotel accommodation, with the hotel rate to be increased to 2% from 2021.

Further details on the proposed measures will be published once available.