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Turkey: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 30 September 2020

  • On 18 March Ankara unveiled a TRY100bn ($15.4bn) economic package comprising tax breaks and deferrals, as well as credit guarantees and delays in loan repayments.

The Turkish Ministry of Finance announced the following measures in relation to tax obligations: 

  • Payments in April, May and June related to withholding tax returns, VAT returns and Social Security Premiums and service documents will be postponed for six months for companies operating in certain industries (e.g. retail, iron steel, automotive, logistics and transportation, cinema and theatre, accommodation, food and beverages, textile and garment and event organization).
  • VAT rate for  education services was decreased from 8% to 1% until 30.06.2021. 
  • WHT rate on rent payments to individuals was decreased from 20% to 10% 31.12.2020.
  • VAT rate for some services were decreased to 8% and 1% until 31.12.2021
  • Limitations for distribution of 2019’s profit was extended until 30.12.2020.
  • Rediscount and advance interest rates were decreased to 9 % and 10 % respectively.
  • Introduction of accommodation tax was deferred until January 2021.

Additional Information