Page 9 - EY-VG_Eylul_2023_v2

Vergide Gündem
English Translation

Taxation problems arising due to making

certain goods, included under list numbered
1 attached to Special Consumption Tax Law,
ready for reuse

Regulations regarding clauses of SCT Law in terms of cases which are subject of tax
and generating tax causes certain hesitations against actual situations arising in
recent periods. Advance rulings, on the other hand, given by the administration are
related to general cases, insufficient number and detail and sometimes including
broad interpretations which may damage principle of legality of the administration.
Certain taxation problems arise due to subjecting goods, included under list
numbered 1 attached to SCT Law, to reuse.

Reuse of goods subject to SCT can be based on processes involving manufacturing
and refining, as well as processes that do not include any production formula or
recipe to preserve the current form of the goods. Since no such distinction or detail
is included in the SCT Law, transactions can be established in tax inspections based
on general rulings given by the administration. Such situations are highly likely to
cause disputes on the grounds of illegality.

In order to prevent such situations, it is necessary to make legal arrangements that
will cover the actual situations related to the subject. In addition, in order for the
administration to achieve the objective of efficiency in the audit, principle of legality
of the administration should be practiced and the Advisory Commission, which was
re-established within the Tax Inspection Board, should be more involved in such
uncertain or controversial issues.

Taxation of earnings from X

After a very sensational acquisition, Twitter first changed its name to X and then
made some changes on its business model to allow users to generate revenue
directly from X. Now users can receive a share from X's advertising revenues and
receive payments from other users who subscribes them.

Naturally, it is safe to say that the earnings obtained by users over X will also bring
some tax liabilities.

The Revenue Administration considers such earnings in the category of
"commercial earnings" and requests concerned individuals to fulfill their duties
(keeping books, submitting quarterly - annual declarations, issuing invoices, etc.)
related to commercial income taxpayers. On the other hand, it will be possible for
people to benefit from a kind of simplified tax application which is effective as of
January 2022.

Individuals who want to benefit from this application must obtain an exemption
certificate by making an application online or by visiting the tax office; They are
required to open a special account at the bank by presenting this exemption
document and share the information regarding this bank account with the tax
office within one month.
Eylül 2023 September 2023 9