According to recent reports, Turkey's Ministry of Finance is currently finalizing plans for a number of tax measures. Some of the main measures include:

• The introduction of a 22% tax rate for the financial sector (standard rate 20%);
• The introduction of 1% tax on retained earnings that will be levied on profits not capitalized or distributed within two months of the annual tax return deadline;
• A reduction in the capital gains exemption for immovable property held for at least two years from 75% to 50%;
• The introduction of a VAT registration requirement for foreign suppliers of e-services to Turkish consumers; and
• An increase in the third bracket individual income tax rate from 27% to 30%, resulting in brackets of 15%, 20%, 30%, and 35%.

The measures are expected to enter into force in 2018. Additional details will be published once available.