NEWS Accounting        31/07/2020

Turkey cuts taxes to give relief to businesses from coronavirus pandemic

The Turkish government has introduced value added tax (VAT) and withholding tax cuts to provide relief for businesses suffering loss of demand due to the coronavirus pandemic. The decree relating to the tax cuts was published in today’s Official Gazette.


The withholding tax on rent for workplaces has been reduced from 20% to 10%.


Value added tax (VAT) on accommodation, restaurants and catering services, and on entrance fees to cinemas, theatres and museums has been reduced from 8% to 1%.


Value added tax (VAT) on services such as passenger transport; wedding organisations; residential cleaning and maintenance; repair of household equipment; tailoring, ironing and dry cleaning services; repair and maintenance of cars, motorcycles, and bicycles; and art/cultural activities has been reduced from 18% to 8%.


The Minister for the Economy Berat Albayrak announced that the tax cuts will be effective until the end of the year.


Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 19.25% in August 2021       Turkey’s official unemployment rate shoots back up to 12% in July 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020