Turkish news

The Turkish government is preparing a regulation to reduce the corporate tax from the pre-set level of 20% starting next year, in a move aimed at reviving the economy in the face of the Corona pandemic and encouraging companies to boost employment.

Turkish NTV television station and the daily Dunia newspaper, citing sources, said that the corporate tax will be reduced and applied between 15% and 18%.

“Although no final decision has been taken yet, work is underway to reduce the corporate tax to a greater degree by less than 20 percent,” one of the sources, an official, told Reuters on Thursday

He added, according to what was translated by “Turkey and the world economy,” quoting “Daily Sabah”, that work to implement a lower percentage for small and medium companies (small and medium companies) and small companies according to their revenues in an advanced stage.

The Coronavirus crisis has almost halted activity in Turkey, just like other countries around the world. Turkey shut some businesses, closed borders and approved stay-at-home orders over the weekend after it reported its first coronavirus case on March 11. The economy reopened in June.

Turnover criteria are the basis for setting rates depending on turnover below the cap of 10 million TL ($ 1.26 million).

Dunia said that the related study is expected to be completed soon and signed into law in October.

With an adjustment in 2017, the income tax rate imposed on business profits has been temporarily increased from 20% to 22% for the periods of 2018, 2019 and 2020.

The three-year application expires on December 31 and the rate will apply again at 20% for 2021 and beyond if no change is made.

The corporate tax is imposed on the income and profits earned by companies and corporate bodies.

The corporate tax rate returns are an important source of income for the Turkish government.

The average corporate tax in Turkey was 24.5% from 1997 through 2020, reaching an all-time high of 33% in 2000 and a record low of 20% in 2006