Turkey introduces income exemption for social media content producers and mobile app developers – Taxation


Turkey: Turkey introduces income exemption for social media content producers and mobile app developers

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Law No. 7338 amending the Law on Tax Procedure and Certain Laws (“Omnibus bill“) is published in the Official Journal of October 26, 2021 and numbered 31640, amending and introducing new regulations for the tax law.

Article 2 of the Omnibus bill introduced a new article to the income tax law number 193 (“ITL”) Like the repetitive article 20 / B which stipulates that from 1 January 2022, the earnings of (I) social content producers who share content such as text, images, audio and video on internet social media providers derived from such activities, and (ii) those who develop applications for mobile devices such as smartphones or tablets derived from such activities, are exempt from income tax. The exemption will always be applicable for the above activities, even if the provider derives income or income from other activities.

Thus, the benefit of this exception is subject to the two following conditions:

  • Open a bank account in banks located in Turkey and receive all income from activities eligible for this exemption only through this account;
  • The total income from these activities is less than the amount specified in the fourth income bracket under ITL Section 103 (equivalent to TRY 650,000 for the year 2021).

Banks are required to withhold, declare and pay income tax at the rate of 15% on the date of transfer, on the amount of income transferred to accounts opened in this context in accordance with Articles 98 and 119 of the LIR. No other deduction according to article 94 of the ITL will be made on this amount.

Those who do not meet the two conditions explained above will not be eligible for the exemption. Accordingly, if the total amount from these activities exceeds the income bracket stipulated above or if these amounts are not collected through a bank account in Turkey opened for this purpose, the taxpayers concerned will not benefit from this exemption.

If it is determined that the conditions for the exception are not met, the undervalued tax will be collected by applying the tax loss penalty and late interest.

The President of Turkey is authorized to reduce the amount of withholding to 0% or increase it by a factor for each classified activity. Further details on the implementation of the income exemption have not yet been announced, and the Ministry of Treasury and Finance is authorized to adopt secondary regulations in this regard.

Please see this link for the full text of the Omnibus bill (only available in Turkish).

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.


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