EXTENSION OF THE APPLICATION PERIOD OF WITHHOLDING TAX AND VAT REDUCTION ON WORKPLACE RENTS
As per the decisions made by the Presidential Cabinet and announced on 15 December 2020, the application period of the reduction on withholding tax (in Turkish, “stopaj”) on workplace rental fees, which was previously reduced from 20 percent (20%) to 10 percent (10%) until the end of the year 2020 by the presidential decision numbered 2812, published in the Official Gazette dated 31 July 2020, is extended until 1 June 2021.
Besides, it was also announced that the application period of the reduction on VAT (in Turkish, “KDV”) rates on workplace rents which was previously reduced from 18 percent (18%) to 8 percent (8%) until the end of the year 2020 by the aforementioned presidential decision, is also extended until 1 June 2021.
In the light of this, we would like to kindly inform you that in case there is no new legal regulation, until 1 June 2021, the withholding tax rate on workplace rents will continue to be applied as 10%, meanwhile, the VAT rate on workplace rents will continue to be applied as 8%.
Our Law Firm remains at your disposal for any further clarifications or assistance you may need about the subject matter.