The Turkish Government has embarked on a series of new economic measures to tackle the pressing financial challenges and the nation’s budget deficit, particularly after the devastating earthquake that recently occurred in the eastern region of the country.
Accordingly, pursuant to the Presidential Decrees published in Official Gazette on July 7, 2023:
- All the fixed fees for judicial and execution proceedings have been increased by 50%. The fixed fees of the notary offices and trade registry offices have also risen by 50%.
- The value-added tax (“VAT”) rate on certain goods and services, including legal services, has increased from 18% to 20%.
- The current 10% tax rate on bank consumer loans has been raised to 15%.
Furthermore, the standard corporate tax rate has risen from 20% to 25%. Additionally, financial institutions (i.e. banks, financial leasing, factoring and financing companies, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies, and pension companies) are now subject to a higher corporate tax rate, which has been raised from 25% to 30%.
Should you have any questions or require further information regarding the most recent updates concerning tax and fee tariffs, please do not hesitate to contact our firm.