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.

 



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