The Turkish Parliament has approved a legislative proposal that includes new tax regulations, an increase in the minimum monthly pension, and a higher fee for local passengers traveling abroad. The legislation aims to improve the country’s fiscal discipline and create a fairer tax system. The minimum pension will be raised from 10,000 Turkish Liras ($303) to 12,500 liras.
This change will benefit over 3.7 million retirees. Multinational companies will also be subject to a 15% minimum corporate tax. The law includes rules about the “local minimum supplementary corporate tax,” taxation period, declaration, assessment, and payment.
Parliament endorses new tax reforms
The goal is to increase income tax security, encourage voluntary tax compliance, and fight the informal economy. If tax loss is caused by unregistered activities without the tax office’s knowledge, a 50% increase in the tax loss penalty will be applied.
The departure tax for Turkish citizens traveling abroad has increased from 150 to 500 liras. The Treasury and Finance Ministry said the new tax regulations are designed to “tax the lesser-earning less, and the higher-earning more.” The ministry wants to strengthen tax efficiency and justice by increasing penalties, removing some exemptions and discounts, and fighting the informal economy more strongly. Under the new law, taxpayers who have no tax to pay due to exceptions will now pay a minimum tax of 10% on their corporate earnings before discounts are deducted.
The ministry also mentioned that tax inspections are currently “continuing for a total of 27% of the 2,815 large taxpayers.”
Treasury and Finance Minister Mehmet Şimşek said, “This law, which aims to increase justice and efficiency in taxation and combat the informal economy, does not impose a burden on our citizens.” He emphasized that the goal is to collect more tax from those who earn more and less tax from those who earn less. Şimşek added, “We will direct the improvement in tax revenues to productive areas for the welfare of our citizens and the stability of our country.”
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