Turkey: Tax administration’s draft guidance on digital services tax

Turkey: Draft guidance on digital services tax

The tax administration on 5 February 2020 released a draft communique as proposed guidance on the digital services tax—as enacted in December 2019. Turkey’s digital services tax is imposed at a rate of 7.5% on Turkish revenues of certain entities beginning in March 2020.


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The draft communique (Turkish) [PDF 581 KB] includes details from the tax administration about the application and scope of Turkey’s digital services tax. As the first draft version of guidance for implementing the digital services tax, it also includes a request for public comments. 

Digital services tax in Turkey

The digital services tax was enacted in December 2019. Read TaxNewsFlash

Services subject to the digital services tax include:

  • Digital advertising services—including advertising control and performance measurement services, data transmission and management related to users, and technical services for the presentation of advertising
  • Sales of any audible, visual or digital content—including computer programs, applications, music, video, video games, in-game applications, etc., via a digital platform as well as services provided for listening, watching, playing or recording or using such content by use of electronic devices
  • Services for the provision and operation of a digital platform by which users may interact with each other—including services to sell or facilitate the sale of a good or service among these users

Intermediary services provided by a digital platform to "the digital service providers" for the services noted above also can be subject to the digital services tax in Turkey.

Persons subject to the digital services tax (that is, the taxpayer) are those that, either individually or on a group-wide basis, meet both of the following conditions in the calendar year before the year when the taxable revenues are obtained:

  • Total worldwide revenue of not less than €750 million (or an equivalent amount)
  • Revenue of not less than TRY 20 million (approximately €3.137 million) obtained in Turkey from the digital services (as defined above)

Regardless of the taxpayer's residence, a permanent establishment or registered head office or business center in Turkey can be liable for the digital services tax.

The rate of the digital services tax is 7.5%, but the president has authority to reduce this rate downward to 1% and to increase the rate of up to two-fold the applicable rate of 7.5%.

The tax base of the digital services tax is the amount of revenue obtained from the digital services during the relevant tax period. No deductions are available for expenses, costs or tax.

For more information, contact a tax professional with the KPMG member firm in Turkey:

Yusuf Penezoglu | +90 212 316 6000 | ypenezoglu@kpmg.com

Emrah Akin | +90 212 316 6000 | eakin@kpmg.com

Zeynep Kilavuz | +90 212 316 6000 | zkilavuz@kpmg.com

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