The recent amendment made in Article 32 of the corporate tax law No. 5520 has resulted in a significant shift in the tax landscape for various institutions. Effective from 01.10.2023, the revised corporate tax rates are as follows:
- Corporate Tax Payer (Excluding Specified Taxpayers): 25%
- Banks and Financial Institutions: 30%
- Institutions Traded on Borsa Istanbul Equity Market for the First Time: 23%
- Exporting Institutions: 20%
- Industrial Enterprises with Production Activities: 24%
These new rates are slated to be applicable for the third temporary tax period of 2023. It is essential to note that the declared rates will be in effect for the earnings obtained during the 2023 periods and the subsequent taxation periods.
Moreover, institutions subject to a special accounting period will observe a customized timeline starting from the 2023 calendar year. The updated rates will apply to the earnings accrued during this period and the subsequent taxation periods.
The alterations in the tax rates signify a pivotal step in the fiscal landscape, necessitating a thorough understanding of the implications for various corporate entities. It is crucial for businesses to adapt to the changes and ensure compliance with the revised regulations.
Stay tuned for further updates and insights regarding the implications of these alterations for businesses and corporate entities in Turkey.
