SIGNBOARD TAX IN TURKEY
The Code of Municipal Revenues (in Turkish “Belediye Gelirleri Kanunu”, hereinafter referred to as the “Code”) numbered 2464 and published in the Official Gazette dated 29 May 1981 determines the commercial and industrial activities subject to taxation within municipal boundaries.
The principal elements subject to taxation pursuant to the article 12 of the Code are such materials as signboards and/or leaflets displaying a name, a trademark or a product for advertorial purposes or providing information on the business conducted.
Scope of Application of the Code Regarding the Signboard Tax
Provisions of the Code concerning the signboard tax are applicable to all kinds of advertorial materials including signboards within municipal boundaries, as well as the leaflets published on commercial purposes. Metropolitan Municipality Code (in Turkish “Büyükşehir Belediyesi Kanunu”) numbered 5216 and published in the Official Gazette dated 23 July 2004 confirms this taxation principle. As per the article 12 of the Code and the article 23/g of the code numbered 5216; signboard tax accrued with respect to any and all sorts of advertisements placed on squares, boulevards, avenues and highways within metropolitan municipal boundaries or on buildings having a facade towards such areas shall be collected by the Metropolitan Municipality and those falling into the boundaries of local municipalities shall be collected by the related local municipality.
Taxpayer and Responsible
As per the article 13/1 of the Code, any and all natural and legal persons advertising by themselves or through a third party advertiser shall be held liable for such tax.
However, the article 13/2 of the Code foresees that those performing advertorial and publicity-related works as permanent occupation shall be held liable for the declaration of the taxes related thereto on behalf of each respective taxpayer that they have served.
Tax Calculation
Signboard Tax rates shall be determined by metropolitan and local municipalities as per annually revised tariffs. Such tariffs are not uniform and vary across the municipalities.
The main criteria of signboard tax calculation are as follows:
- whether the signboard is illuminated or not,
- the size of the signboard,
- for non-illuminated signboards; whether the size exceeds 0,50 m2 or not,
- for leaflets, the number of the printed leaflets
Please kindly note that the taxpayer shall be exempt from the Signboard Tax for one (1) of its non- illuminated signboards remaining below such size.
Tax Declaration and Filing Deadline
The article 16 of the Code determines the deadline for the declaration to the related municipality of newly placed signboards as the 20th day of the following month as from which the signboard is placed or the leaflet, advertisement and/or the publicity is emitted.
Please kindly bear in mind that Signboard declaration shall be made every year to the municipalities and such tax shall be accrued and paid annually. For 2016, the deadline for such declaration has been determined for 31 January 2016; however, it has been extended by many municipalities (e.g. Beşiktaş Municipality, Istanbul Metropolitan Municipality etc.) until 29 February 2016.
Municipal councils are entitled to decide at their own discretion to collect the Signboard Tax in two instalments.
Penalties
The taxpayers are under the obligation to duly, correctly and timely declare their respective signboards to the municipalities within the borders of which the signboard and/or the advertorial material is located.
Any kind of violation related thereto shall be determined upon inspection by municipal officers or at the moment of late declaration at the municipalities, and a certain tax penalty to be calculated on prorata basis to the outstanding tax debt shall be imposed to the breaching taxpayer.
Our Firm remains at your disposal for any further clarifications and assistance you may require.