[World Tax News] Turkey extends tax compliance deadline due to earthquake and more

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.

1. Turkey extends the deadline for filing the return of income and tax payments till August 2023 due to a disastrous earthquake

The Ministry in the Gurin district of Sivas province of Turkey has declared a state of force majeure due to the recent earthquake disaster in Kahramanmaraş on 06-02-2023.

The state of force majeure has been declared in the provinces of Adana, Adıyaman, Diyarbakır, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye and Şanlıurfa, which were affected by the earthquake.

The following deadlines have been extended during the force majeure situation:

(a) The tax returns and notification periods to be submitted;

(b) Payment periods of taxes accrued on these declarations and notifications;

(c) The payment period of all kinds of taxes, penalties, and delay interest accrued before the earthquake date, whose payment period coincides with the period declared as force majeure;

(d) The second installment payment period of the 2023 motor vehicle tax;

(e) Payment period of all kinds of taxes, penalties, and delay interest, which are completed before the earthquake date, ex-officio or levied by the administration and whose maturity coincides with the start of the force majeure event.

The deadline for submission of declarations and notifications has been extended until 15th August 2023. Additionally, taxes accrued on these declarations and notifications, and other taxes, penalties, and delay interests mentioned earlier, can be paid until 31st August 2023.

Taxpayers situated in the impacted provinces may settle their tax debts in installments, without incurring interest, for a maximum of 24 months, as long as they meet certain criteria and submit an application by 2nd October 2023.

Sources:

Initial release dated 08-02-23

Release dated 21-02-23

2. Turkey strikes off withholding tax on share buybacks from 15% to 0%

Turkey’s Revenue Administration released Presidential Decision No. 6791 on 14th February 2023, which includes a provision for a lowered withholding tax rate on share buybacks.
Pursuant to Article 94 of the Income Tax Law, if a Turkish company that is fully liable and subject to taxation purchases its own shares, the profit or income received by shareholders is classified as a deemed dividend and subject to a 15% withholding tax.

However, with the implementation of Presidential Decision No. 6791, the withholding tax rate has now been reduced to 0%.

Source: Presidential Decision No. 6791

Click Here To Read The Full Article