1 point tax deduction for exporters and manufacturers

The corporate tax rate will be reduced by 1 point for the profits of exporting establishments derived exclusively from export activities and companies holding the industrial registration certificate derived exclusively from production activities.

According to the information obtained by the correspondent of the AA, the Ministry of Treasury and Finance Tax Administration (GİB) has prepared a draft communiqué on the modification of the general communiqué on corporate tax.

Within this framework, the corporate tax rate will be reduced by 1 point for the profits of exporting companies derived exclusively from exports, and companies holding an industrial registration certificate and actually carrying out production activities.

No additional discount will be applied for the part of these receipts corresponding to exports.

– The period during which the reduction will be applied

Taxpayers who use the calendar year as their accounting year will be able to benefit from this discount of 1 point on their income from production and export activities from January 1, 2022.

On the other hand, taxpayers who do not respect the nature of their activities and transactions in the period of the calendar year and for which a special accounting period has been designated by the Ministry of the Treasury and Finance may apply a reduction of 1 point to their earnings since the start of the special accounting period which began in calendar year 2022.

– Discount conditions

The rate of corporation tax applicable in the period considered may be reduced by 1 point, in particular for the income of exporting institutions derived from the export of goods and services.

In the event that taxpayers have income from other activities in addition to their export activities, the tax base, which will be subject to a discount of 1 point, will be determined by dividing the export income by the profit of the commercial balance sheet.

In case the goods purchased abroad are exported by being sold to a customer in another country without entering Turkey, a discount of 1 point can be used for profits from this activity.

In the event that taxpayers holding an industrial registration certificate have income from other activities in addition to their production activities, the base on which the deduction of 1 point of the production activity will be applied will be determined. dividing the actual production revenue by the profit trade balance of the sheet.

– 1 discount point is valid even if the income of the manufactured products is due to export.

Even if all or part of the income from the sale of products manufactured by taxpayers comes from exports, the corporate tax rate will be applied with a discount of 1 point on income from production activity.

The corporate tax rate is applied with a discount of 2 percentage points on all profits of companies whose shares are offered to the public for the first time, at least 20% for the first time on the Borsa stock market Istanbul, from as of the accounting year in which their shares are offered to the public for the first time.

In this way, if a profit is obtained by engaging in production and export activities in the institutions that are offered to the public for the first time, a discount of 1 point will be applied for the income earned from the production activities. and export after a discount of 2 points. is calculated for all the bases of these establishments.

On the other hand, a reduced corporate tax is applied to income from investments under the investment incentive certificate, starting from the accounting period in which the investment begins to be operated partially or totally, until until the amount of the contribution to the investment is reached. , taking into account the contribution to the investment and the tax reduction rates in the corresponding incentive certificate.

In the event that the taxpayers holding the industrial register certificate, who will benefit from the corporate tax reduction, have received income from production activities or export activities during the same period, they may benefit from both an abatement of 1 point and a reduced rate of corporation tax according simultaneously to the rate of tax reduction in the investment incentive certificates.

While the RA’s work continues to develop the draft and prepare it for publication, opinions and suggestions regarding development, modification, or contribution to draft questions may be submitted to the RA until May 9. .




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