AN UPDATE ON REGULATIONS ON INCOME TAX AND RETAIL SALES INTRODUCED WITH THE NEW OMNIBUS LAW

In our Newsletter dated 7 November 2022, we informed you that the Omnibus Law on the Amendment of the Income Tax Law and Some Laws and Decrees numbered 7420 (in Turkish, “7420 Sayılı Gelir Vergisi Kanunu ile Bazı Kanun ve Kanun Hükmünde Kararnamelerde Değişiklik Yapılmasına Dair Kanun, the “Omnibus Law”) has been announced to have been enacted by the Grand National Assembly of Turkey.

We would like to inform you with this additional bulletin that the Omnibus Law was published in the Official Gazette on 9 November 2022 and the provisions related to the employees’ allowances to be exempted from income tax law shall be entered into force on 1 December 2022.

However, the provisions related to regulation related to the allowances such as electricity, natural gas, and other heating expenses as well as the provisions foreseen related with the administrative fines related to retail sales has entered into force on 9 November 2022.

Our Law Firm remains at your disposal for any further clarifications you may need.