ANNOUNCEMENT AND ADVERTISEMENT TAX IN TURKEY

In Turkish Law, the Code of Municipal Revenues numbered 2464 (in Turkish, “Belediye Gelirleri Kanunu”) (“Code numbered 2464 ”) governs the commercial and industrial activities subject to taxation within municipal boundaries. As per article 12 of the Code numbered 2464, all kinds of advertisements and announcements within the municipal boundaries and municipal adjacent areas (in Turkish, “Mücavir Alanlar”) are subject to announcement and advertisement tax (in Turkish, “İlân ve Reklâm Vergisi”).

1. 1. What is the Scope of the Announcement and Advertisement Tax?
      Provisions of the Code numbered 2464 concerning the announcement and advertisement tax are applicable to all kinds of advertising materials, including but not limited to signboards within municipal boundaries, leaflets, brochures published with commercial purposes, banners, the advertisements and announcements on inner or outer side of the motor vehicles etc .The details of announcement and advertisement tax are also set forth in the Metropolitan Municipality Code numbered 5216 (in Turkish, “Büyükşehir Belediyesi Kanunu”) (“Code numbered 5216”).As per the article 23 of the Code numbered 5216, the tax to be accrued to all kinds of announcements and advertisements on the squares, avenues, streets and main roads and on the buildings standing adjacent to these areas within the boundaries of the metropolitan municipality shall be collected by the metropolitan municipalities.

1. 1. Who is the Tax Payer?
      As per article 13 of the Code numbered 2464, the tax payers of the announcement and advertising tax are the real or legal persons who directly advertise on their behalf or who use third parties whilst advertising.On the other hand, as per the same article, the individuals carrying out announcement and advertising activities as a part of their customary business shall pay the announcement and advertising tax to the relevant municipalities on behalf of tax payers.
   2. How to Calculate the Announcement and Advertising Tax
      The announcement and advertising tax shall be calculated as per the tariff set forth in article 15 of the Code numbered 2464.
   3. What is the Deadline for the Tax Declaration (“Declaration”) and Accrual of the Tax?
      As per t article 16 of the Code numbered 2464, the declaration should be given;
      1. before making the announcement and advertising by the tax payer, if the tax payer directly advertises on his/ her/ its behalf
      2. until the end of 20th day of the following month that the announcement and/or the advertising is made, if the announcement and/or the advertising is made by the individuals who carry out announcement and /or advertising activities as a part of their customary business.

      The announcement and advertising tax shall be accrued upon this declaration.

      However, for (i)all fixed announcements and advertisements, e.g. signboards, pictures, etc hung on various places by the shops, industrial and commercial establishments and freelancers, (ii) the announcements and advertisings placed inside or outside the motor vehicles, and (iii) illuminated or projection announcements and advertisings, the announcement and advertising tax shall be accrued and paid in January every year without the necessity of giving a new declaration each time (save for changes) provided that these announcements and advertisings subject to taxation have a continuous character.

   4. What Happens If the Tax Payer Fails to Fulfill His /Her/Its Obligations?
      If the tax payer fails to give the declaration in  accordance with the Code numbered 2464 and articles 7 (g) and 23 (e) of the Code numbered 5216, or if the declaration given includes inaccurate/ missing information, loss of tax penalty and interest of default shall be applied according to the relevant articles of Tax Procedure Law numbered 213.

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