Yeni Vergi
Yeni Vergi: A Comprehensive Guide
What is Yeni Vergi?
Yeni Vergi, or the New Tax, is a comprehensive tax reform package introduced by the Turkish government in 2023. It aims to streamline the tax system, reduce tax evasion, and increase tax revenues. The package includes a number of changes to existing taxes, as well as the introduction of new taxes.
Key Features of Yeni Vergi:
- Simplification of the tax system: Yeni Vergi simplifies the tax system by reducing the number of tax brackets and eliminating certain exemptions and deductions.
- Reduction of tax evasion: The package includes measures to reduce tax evasion, such as increased penalties for non-compliance and improved tax enforcement.
- Increase in tax revenues: Yeni Vergi is expected to increase tax revenues by approximately 1% of GDP.
Changes to Existing Taxes
Corporate Income Tax:
- The corporate income tax rate has been reduced from 22% to 20%.
- The withholding tax rate on dividends has been reduced from 15% to 10%.
Personal Income Tax:
- The number of tax brackets has been reduced from 15 to 4.
- The top marginal tax rate has been reduced from 35% to 27%.
Value-Added Tax (VAT):
- The standard VAT rate has been increased from 18% to 20%.
- The reduced VAT rate of 8% has been eliminated.
New Taxes
Digital Services Tax:
- A new 7% Digital Services Tax has been introduced on the revenue of multinational technology companies that have a significant presence in Turkey.
- The tax is expected to generate approximately 1 billion Turkish lira in additional revenue.
Luxury Goods Tax:
- A new Luxury Goods Tax has been introduced on the sale of luxury goods, such as jewelry, watches, and yachts.
- The tax rate ranges from 10% to 50%, depending on the type of luxury good.
Conclusion
Yeni Vergi is a significant tax reform package that is expected to have a major impact on the Turkish economy. The package includes a number of changes to existing taxes, as well as the introduction of new taxes. The government hopes that Yeni Vergi will help to simplify the tax system, reduce tax evasion, and increase tax revenues.
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