Anasayfa
Intern
Uluslararası
İrtibat
Cİrcular No: 2024 / 72
Date: 02.08.2024
On August 2, 2024, Law No. 7524, which amends certain Tax Laws and Decree Laws No. 375, was published in Official Gazette No. 32620
Articles 37 to 50 of the Law establish the regulations pertaining to both domestic and global minimum corporate tax.
As a result of the regulation, the earnings of the subsidiaries of multinational enterprise (MNE) groups, whose annual consolidated revenue in the consolidated financial statements of their ultimate parent entity (UPE) exceeds the equivalent of 750 million euros in Turkish lira in at least two of the four fiscal periods preceding the reporting period, are subject to domestic and global minimum corporate tax. Thus, in case the effective corporate tax rate of the covered taxpayers falls below 15%, it is aimed to levy additional tax for top-up purposes.
The relevant articles of the Law define the application of Global and Domestic Minimum Corporate Tax within the Corporate Tax Law and include provisions for calculating the tax burden to be considered in the calculation.
The Liable Taxpayers, Taxation Period, Declaration and Payment of the Global Minimum Corporate Tax
Additional Article 7 added to the Corporate Tax Law provides explanations regarding the taxpayers subject to the global minimum corporate tax.
Under the principle of including qualified income, the taxpayer for the global minimum corporate tax is defined as follows: for MNE groups, this includes the Turkish-resident UPE, intermediate parent companies (subsidiaries directly or indirectly holding ownership stakes in other subsidiaries within the same MNE group), or partially owned parent companies (includes subsidiaries within the same MNE group, which are directly or indirectly held by entities that are not part of the MNE group, and where these entities hold more than 20% of ownership).
Additional Article 8 has also been added to the Corporate Tax Law concerning the taxation period, declaration and payment of the global minimum corporate tax.
Accordingly, the taxation period for the global minimum corporate tax is the accounting period. For those assigned a special accounting period, the taxation period is the special accounting period. The accounting period is the taxation period that forms the basis for the preparation of the UPE's consolidated financial statements.
The global minimum corporate tax is assessed based on the declaration of the taxpayer; however, the calculated tax must be declared and paid by the last day of the fifteenth month following the end of the fiscal period.
Taxpayers are required to include global minimum corporate tax information returns with their submitted declarations. However, if the global minimum corporate tax information return is submitted in another country where a Qualifying Competent Authority Agreement is in effect, and the declaration specifies which country and which subsidiary submitted the information return, the obligation for taxpayers to submit the global minimum corporate tax information return is waived.
The Liable Taxpayers, Taxation Period, Declaration and Payment of the Domestic Minimum Corporate Tax
Additional Article 9 added to the Corporate Tax Law provides explanations regarding the taxpayer of the domestic minimum corporate tax. Accordingly, the taxpayer for the domestic minimum corporate tax includes any affiliated enterprise or joint venture resident in Türkiye and affiliated with MNE groups.
Moreover, Additional Article 10 has been added to the Corporate Tax Law concerning the taxation period, declaration and payment of the domestic minimum corporate tax.
The taxation period for the domestic minimum corporate tax is the accounting period. For those assigned a special accounting period, the taxation period is the special accounting period.
The qualified domestic minimum corporate tax determined by applying the minimum corporate tax rate to the global minimum corporate tax base is assessed based on declarations made by the taxpayers. Any additional current-period qualified domestic minimum corporate tax, if applicable, is added to this tax. The calculated tax must be declared and paid by the last day of the twelfth month following the end of the accounting period.
If any taxpayer resident in Türkiye and part of the same MNE groups declares and pays the full amount of the qualified domestic minimum corporate tax on their own behalf, the responsibility of the other taxpayers in the Group for the declaration and payment of this tax is waived. However, if the full amount of the tax is not paid, the joint and several liability of the other taxpayers within the same MNE group for the payment of the tax will remain.
These regulations will apply to income earned in the 2024 fiscal year and in future tax periods. For entities with special fiscal periods, the regulations will apply to income from the special fiscal period starting in 2024 and in subsequent tax periods, effective from the date of publication.
A General Communiqué is expected to be issued detailing the procedures and principles for calculating the global and domestic minimum corporate taxes introduced in the Corporate Tax Law.
Kind regards,
“Our explanations given above contain general information on the subject. No liability claims can be made against Rödl & Partner for the consequences arising from or related to the content of this document."
