What is included in the general invoice?

What is in the omnibus law, what are its articles?

“The Bill on Amendments to Certain Laws and Decree Laws” (Omnibus Bill) was recently submitted to the Grand National Assembly of Turkey with the signatures of 64 AKP deputies. Although the general law consists of 80 articles, it contains changes in many areas, especially the economy.

WHAT DOES THE Omnibus Law CONTAIN?

Some of the 80 articles included in the omnibus law are the following;

Tax increases in foreign currency: With the omnibus bill, President Tayyip Erdoğan is authorized to increase tax rates on interest income from foreign exchange and money earned on the stock market to up to 40 percent.

He also calls for taxes on those who earn in the stock market: With article 12 of the omnibus proposal, it is anticipated that the President will be authorized to collect up to 40 percent tax on the returns obtained from securities issued in foreign currency (eurobonds or debt securities in dollars) and interest income and dividends obtained from foreign currency accounts opened in banks. The current increase authority is currently limited to 30 percent and the tax burden is up to 25 percent. If the authority is fully utilized after the law comes into force, it will be more advantageous to purchase Treasury debt securities in Turkish lira instead of foreign currency and open TL accounts in banks instead of foreign currency. The omnibus bill provides that the president’s authority to increase tax rates on profits from the purchase and sale of stocks on the stock exchange by up to 15 percent will be increased to “up to 40 percent.” . This authority can be used at different rates depending on the share issuance date, issuers, account opening date, and type. Tax authority is still used to reduce, not increase.

Tax deductions for athletes are becoming longer: The reduced-rate income tax on the income of athletes, especially footballers, normally ends at the end of this year. However, with the omnibus bill, this period is extended for another five years until the end of 2028, and the president has the authority to extend it for five more years in the future. In sports subject to the league procedure, a tax of 20 percent of the winnings is currently collected from athletes playing in the higher league, a 10 percent tax is collected from athletes in the lower league and a 5 percent percent is collected from other leagues and from those not subject to the league procedure. league procedure.

Personal data may be sold: The general bill paves the way for the State to sell the personal data of millions of citizens to individuals and companies in exchange for money. Under the proposed law, all tax information of citizens and companies held by the Revenue Administration (GIB) can be sold for money to third parties and companies other than public institutions. It is anticipated that a participation fee of at least 25 kuruş per registration will be charged in exchange for the information to be sold. Those who acquire other people’s personal tax information with money may not violate the dignity, honor and rights of taxpayers.

Increases the tax exemption for those who bring foreign currency: As long as all dividends earned abroad are brought to Turkey, half of these profits are exempt from income and corporate taxes, and the 50% discount on profits applies to services such as architecture, engineering, design, software, education and health provided abroad, all profits are transferred to Turkey. It is recommended to regulate the application of a 5-point corporate tax reduction on income from export activities carried out by manufacturing or supplier institutions through foreign trade capital companies or sectoral foreign trade companies, on the basis of an export intermediation contract, in order to support exports, provided that it is increased to 80%.

Tax increases for those who make money online: Profits made by publishing videos such as training, recipes and product promotions on the Internet are also GVK. Duplicates will be included in the scope of the exception regulated in article 20/B. These people will also open a bank account like YouTubers, and a 15% deduction will be made from the money deposited in the bank. If the income obtained in this way exceeds the determined limit (for 2023, this limit was 1,900,000 TL), an annual income tax return will be filed and amounts exceeding this amount will be subject to the 40% tax.

In addition, the general law also includes regulations such as the creation of the Family and Youth Bank, interest-free marriage loans and pensions for housewives.

Source: Sozcu

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