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International Tax Bulletin: 27.03.2020/11
International Tax Bulletin: 27.03.2020/11
Force Majeure Financial Precautions acquired by various Government Agencies are summarized below:
1. Financial Regulations in Law no. 7226
The main economic measures taken by the law no. 7226 related to COVID-19 outbreak published in 26.03.2020 are summarized below:
2. Extension of the Duration of the Declaration and Payment of Individual Income Tax for FY2019
According to the Circular no. 125 regarding Tax Procedure Code published by Revenue Administration, the annual income tax declaration to be declared in 31.03.2020 and the first installment payment regarding said declaration has been extended to 30.04.2020.
3. Extension of the Submission Period of the VAT and BA / BS Forms for the February 2020 Period and the Submission of the e-Books for the March 2020 Period
According to the Circular no. 126 regarding Tax Procedure Code published by Revenue Administration, following submission periods are postponed:
|
Normal Submission Period |
Postponed Submission Period |
VAT for the February 2020 Period |
26.03.2020 |
24.04.2020 |
BA/BS Forms for February |
31.03.2020 |
30.04.2020 |
e-Books for March |
31.03.2020 |
30.04.2020 |
4. Postponement of VAT and Withholding Tax Declaration Periods for March, April and May for Specific Sectors, and Delay of Payment for Taxes Accrued on These Declarations
According to Tax Procedural Code Communique no. 518, for specific sectors, The VAT and Withholding Tax Declaration Periods for March, April and May 2020 are postponed 27.07.2020 while payments regarding these declarations are postponed for 6 months. Said sectors are as follows:
In addition, the BA/BS Forms and e-Books declarations are also postponed for three months for said taxpayers.
5. Facilitating the Conditions of Benefitting from Short-Term Working Allowance
According to the announcement made on 22.03.2020 by Turkish Employment Agency, due to the COVID-19 epidemic, the conditions for short-term working will be born to be implemented in cases where the working time is reduced by at least 1/3 or the activity is stopped for at least four weeks, and short-term working applications can be made by the employers.
Please note that short-term working payments are limited to 60% of gross salaries of employees regarding the duration that they do not work. Please also note that said payments to be made by Turkish Employment Agency are limited to 150% of minimum wage.
6. Eximbank Support Package
Turkish Eximbank announced that they will provide support to exporters dealing with struggles due to COVID-19 outbreak. Said measures related to support package are summarized below:
7. Conveniences Made in Postponement and Meeting Conditions of General Assembly Meetings
The ministry of Commerce took following measures regarding General Assembly Meetings:
8. Financial Supports by Public Banks (Ziraatbank, Vakıfbank, Halkbank)
8.1. Support Loans to Maintain Businesses
Regardless of any sector distinction, all firms that are economically adversely affected by the epidemic will have their guarantees provided by the CGF Guarantee, 6 months principal and interest free, with a 36-month maturity and annual interest rate. The loan facility with an interest rate of 7.5% was commissioned as of 26.03.2020.
Annual Revenue (TRY) |
Max. Loan Amount (TRY) |
25 million |
10 million |
25- 125 million |
25 million |
125 million+ |
100 million |
9. Financial Supports by Banking Sector
9.1. Check Payment Support Loan
Loan support will have a 3-month principal and interest free payments, a total of 12-month maturity and an annual interest rate of 9.5%. With this loan, it is aimed to contribute to the protection of customers' commercial reputations.
Annual Revenue (TRY) |
Max. Loan Amount (TRY) |
25 million |
1 million |
25- 125 million |
5 million |
125 million+ |
10 million |
9.2. Economic Stability Shield Support Loan
Banks will start "Economic Stability Shield Support Loan" for the working capital needs of corporate and commercial customers, especially SMEs. As of the end of February 2020, companies that will use credit support cannot reduce their number of registered employees during the credit term. Treasury-backed CGF bail will also be provided for customers with lack of collateral to access loan.
Loan support will have a 3-month principal and interest free payments, a total of 12-month maturity and an annual interest rate of 9.5%.
Annual Revenue (TRY) |
Max. Loan Amount (TRY) |
25 million |
5 million |
25- 125 million |
25 million |
125 million+ |
50 million |
Centrum will continue to inform the relevant persons and companies regarding Force Majeure Financial Measures.
Kind Regards.