The Turkish Revenue Administration has launched a consultation on the draft Income Tax General Communique No. 329, on 4 November 2024, which addresses amendments to individual income and corporate tax as outlined in Law No. 7524/2024 related to withholding in electronic commerce.
Stakeholders are invited to submit their feedback by 21 November 2024.
As per Law No. 7524, intermediary service providers and electronic commerce intermediary service providers must withhold taxes on payments to service providers for activities governed by Law No. 6563, which oversees electronic commerce. This requirement includes payments for goods and services in sectors or activities designated by the President.
The draft General Communiqué outlines several key aspects regarding withholding tax for electronic commerce payments, including the scope of the withholding tax obligation, the procedures for determining, declaring, and paying withholding tax, specific exemptions from withholding tax, and the process for deducting and refunding withheld taxes.
The specified individuals and entities are subject to withholding rates of 25% for individual income tax and 15% for corporate tax.
The withholding tax base consists of the gross payment amount, including fees charged by intermediary service providers or electronic commerce intermediary service providers, but excludes VAT and accommodation tax.
