The Official Letter of Revenue Administration For Private Banks About Tax Collection1
The official letter titled “Protocols” dated 26 November 2019 delivered by the Revenue Administration to Head Offices of Turkish Private Banks includes;
- Cancellation of tax collection authority granted by the Revenue Administration to Turkish Private Banks,
- As of 1 January 2020 (including this date), Termination of Protocols on aforementioned authority (head office, branch, internet banking, ATM, telephone banking included) signed between Turkish Private Banks and the Revenue Administration,
- Requirement on transferring of taxes collected prior to 1 January 2020 by Turkish Private Banks to the Central Bank of Turkey in specified time and procedure issued by aforementioned Protocols,
- Requirement on closing the accounts of Tax Authorities which are opened at Turkish Private Banks for tax collection after related transactions are completed in accordance with Protocols.
Pursuant thereto, taxes shall be paid to Turkish Public Banks as of 1 January 2020.
Accordingly, bank accounts in Turkish Lira should be opened at these public banks before that date in this respect.
In terms of social security premiums, we are of the view that the social security premiums to be paid by the employer can be paid to Turkish Private Banks because social security premiums are not deemed as tax according to Turkish Tax Legislation.
Our Law Firm remains at your disposal for any further clarifications you may need.
1 This Newsletter aims to provide priviliged clients with our general legal analysis in respect of the current news collected via Web. Hence, please note that we have not been provided with rigid legal basis from the Tax Authorities in Turkey about this subject yet.