Turkey published Law No. 7194 in its Official Gazette. By means of this law, Digital Services Tax, Tax on high-valuable property, and Accommodation Tax have been established. In addition, some amendments and additions have been made in certain articles of Real Estate Tax Law No 1319, Expense Tax Law No 6802, Income Tax Law No 193 and Tax Procedure Law No 213.
Digital Services Tax
The Digital Services Tax is a new tax liability in Turkey. It applies to revenues obtained from the following digital services:
- All kinds of digital advertising services, including advertisement control and performance measurement services, the services for data transmission and management of users, and technical services for advertising;
- The digital sale of any audio, visual or digital content, including computer programs, applications, music, video, games, in-game applications, and services provided through digital media aimed at listening, watching, playing or recording these contents via electronic devices through digital media or the use of those contents via such devices;
- Services that enable users to interact with each other digitally, including services aimed at the sale or facilitation of sale of goods or services between users.
Furthermore, intermediation services that are delivered by digital service providers through digital media regarding the above services are also subject to the Digital Services Tax.
The new tax will be imposed at the rate of 7.5% of the revenue derived from certain activities in the digital environment. It will only apply to corporates having a global revenue of more than EUR 750 million and local revenue of more than TRY 20 million. The Digital Services Tax will enter into force in the beginning of March 2020.