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Turkey Approves Increased Corporate Income Tax Rate for 2021 and 2022 — Orbitax Tax News & Alerts

Turkey's Revenue Administration has announced the publication Law No. 7316 of 22 April 2021, which contains various measures regarding collections and other amendments. The key measure of the law is the addition of a provisional article to the Corporate Tax Law providing that the standard 20% corporate tax rate is increased to 25% for the 2021 tax period and 23% for the 2022 tax period.

With respect to the 25% rate for 2021, the rate is effective for the tax period beginning 1 January 2021 (or special periods beginning on or after that date), although it does not apply for current year quarterly advance payments until the declarations to be submitted from 1 July 2021. In other words, for calendar year taxpayers, advance payment for the first quarter is subject to the 20% rate, while the advance payments for the subsequent quarters of the year (due after 1 July) are subject to the 25% rate.