New Tax and Fee Package in Turkey: Who Will Pay More and How Much

A major tax shake-up is on the way in Turkey. This week, the Turkish Grand National Assembly will discuss a new tax proposal aimed at removing exemptions and expanding taxable areas. The ruling party has submitted the draft to parliament, and the Plan and Budget Committee will begin reviewing it on October 21.

The most significant change targets rental income

The most significant change targets rental income. The existing tax exemption of up to 47,000 TL will be eliminated, meaning all homeowners earning rental income, except retirees, will be subject to income tax regardless of the amount.

The proposal also cuts the Treasury’s 4% Social Security premium support to employers down to 2%. However, the 5% insurance premium support for the manufacturing sector will remain unchanged.

New Annual Fees for Health and Veterinary Clinics

Private healthcare providers will face new annual charges. Clinics, polyclinics, dental centers, and veterinary facilities will all pay yearly licensing fees.

Doctors’ offices will be charged 20,000 TL per year, private polyclinics 30,000 TL, and private medical centers 50,000 TL. Dental clinics will pay between 20,000 TL and 40,000 TL depending on their size. In metropolitan cities, these amounts will double.

Veterinary clinics will pay 10,000 TL per year, veterinary polyclinics 20,000 TL, and animal hospitals 40,000 TL.

Tourism facilities and private hospitals will also start paying annual licensing fees, replacing the previous one-time payment.

Vehicle Sales and Jewelry Sector Fees

Another major change affects second-hand vehicle sales. Notaries will begin collecting proportional transaction fees on both new and used car sales. There will be a minimum charge of 1,000 TL per transaction.

The jewelry and real estate sectors will also face new annual licensing fees. Jewelry businesses will pay 30,000 TL, while second-hand car and property dealers will pay 20,000 TL. Again, these amounts will double in metropolitan cities.

New Powers for the Government

The package gives the President the authority to adjust the state contribution rate to the Private Pension System from its current 30% down to zero or up to 50%.

Another change shifts the power to determine tuition fees at private universities to the Higher Education Council. The council will calculate prices based on the average of the annual producer and consumer price index increases in June.

Keywords: #tax #fee #turkey #rental #healthcare #business #vehicle #law #parliament #budget #clinic #dentistry #jewelry #realestate #education #university #economy #finance #policy #BES