On 10 April 2019, Turkey's Treasury and Finance Minister Berat Albayrak announced a new economic reform package with a new set of upcoming tax policy changes.

Accordingly, under this package, Turkey will take steps to ensure fair taxation on higher income groups and steps that will have a minimum effect on inflation.

Minister Albayrak stressed the importance of a taxpayer-centered system, stating that through a taxpayer-friendly system, all processes would be optimized. Furthermore, Minister Albayrak announced plans of establishing a kind of economy that prioritizes high-added value, based on exports and technology.

Some highlights of the new economic reform package are:

• Decrease in current exemptions stated in the tax law
• Gradual decrease in the corporation tax rate
• Spreading the tax declarations
• Introduction of new progressive tax system
• Facilitation of entrepreneurship
• Voluntary compliance with tax system
• Prevent false or misleading documentation
• Establishment of Taxpayer Rights Executive Board
• Making Taxpayer Rights Declaration binding
• Determination of the procedures and principles of right to listen (to the taxpayer)
• Continuous measurement of the taxpayers' satisfaction

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik ve Bagimsiz Denetim A.S. Istanbul

• Ates Konca
  ates.konca@tr.ey.com
• Gamze Durgun
  gamze.durgun@tr.ey.com

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ATTACHMENT

PDF version of this Tax Alert