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• All special provisions reserved by financial leasing and • Banking and insurance transaction tax (BITT) was applied
financing companies will be considered as expenditure only on transactions based on derivatives and options
during the corporation tax base assessment for the contracts within the exchanges established in Turkey. This
concerning year. The aforementioned regulation excludes provision has been changed and transactions based on
factoring companies. The effective date for this provision derivatives and options contracts and the money retained
has been set as 1 January 2019. for one’s own arising from those transactions are now
exempt from BITT regardless of the place in which the
• The condition requiring that engine cylinder capacity of transaction was performed effective from the beginning of
passenger cars that can be purchased without paying 2018.
SCT by the handicapped only once in 5 years should
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not be exceeding 1.600 cm has been removed. As of
the beginning of 2018, the handicapped will be able to This article has been published in the Ekonomist magazine’s
purchase passenger cars valued under TL 200.000 without issue 2017/50 dated 10.12.2017.
SCT regardless of its engine cylinder capacity.

• An upper limit for high unit square meter values on lands
and fields assigned for 2018 by Assessment Commissions
is imposed through a temporary article added into the Real
Estate Tax Law. Pertaining to that, in case the minimum
unit square meter values on lands and fields assigned in
2017 for the year 2018 exceed the 50 % of the unit values
implemented in 2017, in calculating the assessed value of
lands and buildings for 2018, 50 % more of the minimum
unit values for lands and fields implemented in 2017 will
be taken as basis. This provision has been enacted as of
the publication date.

• Taxpayers failing to pay tax debt by due date are notified
through an order of payment to pay in within 7 days or
submit a wealth declaration. The taxpayer had a 7 day
permit as of the notification date for contesting the
payment order or wealth declaration. Through the new law,
the aforementioned deadlines permitted as 7 days have
been extended to 15 days as of the beginning of 2018.

• Special Communication Tax (SCT) rate for mobile
communication services and mobile internet service
supplying is set as 7,5 % effective from 1 January 2018.
Thus, the tax on talking with mobile phone is lowered while
the tax on mobile internet has been increased.

• The inheritance and transfer tax levied on gains from the
chance games, lottery and other similar contests held by
real or legal persons is increased to 20 % from 10 %. That
will be applicable as of the new year.

• Several drinks including fruit and vegetable juices, plain
and fruity soda drinks, lemonade, mineral water and
alcohol free beer will be subject to SCT effective from the
start of the new year. The tax rate has been set as 10 %.
Tobacco rolling paper has also been included within the
scope of SCT as of 5 December.

• The VAT arising from the services provided electronically
to the real persons who are not taxpayers of VAT by whom
not having any residence, workplace, legal center and
business center in Turkey will be declared and payed by the
suppliers of those services. This will be taking effect as of
the new year starts.
• Roaming services received under international roaming
agreements and activities of delivering those services to
the clients in Turkey has been included in the scope of VAT
exemption from the beginnig of 2018.

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