TAX CIRCULARS

 

SUBJECT : Law No. 7244 on the Reduction of the Effects of the New Coronavirus (Covid-19) Outbreak has been published.

New coronavirus (covid-19) outbreak-borne on the grounds of force majeure; and date of official gazette No. 7244 16.04.2020 31102 “new coronavirus (covid-19) the reduction of the effects of the epidemic on economic and social life of the law and amending some other laws” was published.

Some of the regulations made by the aforementioned law are summarized below.

  1. Failure to terminate employment contracts by the employer for three months

The following temporary article has been added to the Labor Law dated 22/5/2003 and numbered 4857.

Regardless of whether this Law is covered or not, any employment or service contract can not be terminated by the employer for three months ( except in cases that do not comply with the rules of ethics and good faith and similar reasons ) from the date this article enters into force .  

The employer may leave the worker entirely or partially on unpaid leave for a period of three months from the effective date of this article . Being entitled to unpaid leave under this article does not give the employee the right to terminate the contract based on the justified reason.

In violation of the provisions of this article, the employer or employer deputy who terminates the employment contract is given an administrative fine at the monthly gross minimum wage amount for each employee whose contract is terminated.

The President is authorized to extend the three-month periods in the first and second paragraphs up to six months.

2. Cash wages support for workers on unpaid leave

The following provisional article has been added to Law No. 4447.

Unemployment according to the other provisions of this Law, after 15/3/2020 , the employment contract was terminated after 15/3/2020 with the workers who had a work contract at the date of entry into force of this article, and who could not benefit from the short-time working allowance pursuant to the temporary article 10 of the Law No. 4857. 39.24 Turkish lira (monthly) from the Fund for the workers , who cannot benefit from the social security allowance , for a period of time without a termination in the temporary article 10 of the Law No. 4857, provided that they do not receive a pension from any social security institution. 1.177,20) cash fee support is provided. No deduction can be made from the payments made, except for stamp tax (7.59 per thousand) .

Under the first paragraph if it is determined that run virtually the workers benefiting from the support fee cash left unpaid leave to the employer, so that run every worker and was run for each month separately separately , including act of 4857 on the date of processing of Law No. 39 of Article determined by the monthly gross minimum wage work and business agency Administrative fines are imposed by the provincial directorates and the paid cash support is collected from the employer along with the legal interest to be processed from the date of payment.

Those who benefit from cash fee support within the scope of this article are not considered to be covered by the general health insurer or general health insurer under the Law No. 5510, they are considered as general health insurers within the scope of subparagraph (g) of the first paragraph of Article 60 of the same Law and the premiums related to general health insurance are covered by the Fund.

The Ministry is authorized to determine the payment procedures and principles regarding cash fee support and to eliminate any hesitations that may arise regarding the application of this article. ”

  1. Introducing profit distribution limitation

The following temporary article has been added to the Turkish Commercial Code dated 13/1/2011 and numbered 6102.

Until 30/9/2020 , only twenty-five percent of the net profit for the year 2019 can be decided to be distributed in capital companies, previous year profits and free reserves cannot be distributed , and the general assembly cannot be authorized to distribute dividend advances. This clause does not apply to governments, special provincial administrations, municipalities, villages and other public legal entities and companies with more than fifty percent of the capital’s capital, directly or indirectly more than fifty percent of their capital. The President is authorized to extend and shorten the period specified in this paragraph for three months.

If the general assembly has decided to distribute dividends for the fiscal year of 2019, but the shareholders have not yet been paid or partial payments , payments exceeding twenty-five percent of the net profit for 2019 will be postponed until the end of the period specified in the first paragraph.

The Ministry of Trade is authorized to determine the exceptions and the procedures and principles regarding the implementation of the capital companies within the scope of this article, by taking the opinion of the Ministry of Treasury and Finance. ”

Accordingly, the company’s capital (Turkey branch of Foreýgn companies and sole proprietorships that coverage included is not), until the date of 30.09.2020;

  • Only 25% of the net profit of 2019 will be distributed.
  • Previous year profits and free reserves will not be subject to distribution,
  • The General Assembly will not be authorized to distribute advance dividends to the Board of Directors.

If the General Assembly has decided to distribute dividends for the fiscal year 2019, but the shareholders have not yet been paid or partial payments , payments related to the portion exceeding 25% (twenty five percent) of the net profit of 2019 will be postponed until 30/09/2020.

  1. Associations Law

04.11.2004 No. 5253 and No. 4721 dated 22/11/2001 and the Law on Associations will be given by the association, according to the Turkish Civil Code notifications and declarations by the association general meeting will be postponed until the date of 07.31.2020. This period can be extended up to 3 months by the Minister of the Interior. Deferred general assembly meetings are held within 30 days from the date of postponement. The duties, powers and responsibilities of the existing bodies continue until the first general meeting to be held after the postponement period .

  1. Activities of R&D and Design Centers and Technology Development Zones Outside the Set Limits

28/2/2008 dated 5746 Research, Development and Design Activities under the Law on the Promotion of R & D and design centers of the activities in R & D and design centers outside to be made ; Within the scope of the Technology Development Zones Law dated 26/6/2001 and numbered 4691, the Ministry of Industry and Technology may be allowed to carry out the activities carried out within the Region, for a period of 4 months starting from 11/3/2020. This period can be extended up to 3 months from the end of the Ministry of Industry and Technology. If allowed,   

Provided that the Ministry of Industry and Technology is informed, it continues to benefit from discounts, exceptions, supports and incentives under the Law No. 5746 and Law No. 4691.

  1. Annual announcement and advertisement taxes and environmental cleaning taxes of businesses that are suspended or unable to operate

The annual announcement and advertisement taxes and annual environmental cleaning taxes of the companies whose activities are stopped or cannot operate are not taken into consideration, which correspond to the periods in which the activities are stopped or inactive.

  1. Postponing the sales, alternative and rental fees for the immovables owned by the municipalities

As of 19/3/2020 , the collection of the amounts or amounts arising from the sales, pharmaceutical and rentals related to the immovables owned or owned by the metropolitan municipalities, municipalities, special provincial administrations and affiliates and the local administration unions to which they are members, are collected for a period of 3 months starting from 19/3/2020 . the parliaments in metropolitan municipalities, municipalities, special provincial administrations and unions to delay the parts that should be postponed for 3 months; In affiliated institutions, the authorized decision body is authorized. These periods can be extended up to 3 months by the Minister of Environment and Urbanization or the Minister of the Interior, depending on the interest since the end. Such receivables are collected at the end of the deferred period, in equal monthly installments for the deferred period, without any delay increase or interest. The rental fees are not collected for the period when the businesses whose activities were stopped or could not operate are not operating.

In accordance with Article 4 of the Law on Metropolitan municipalities, municipalities and their affiliates’ income tax withholding declaration and payment periods, all social insurance premium payments and the Law on Drinking, Using and Industrial Water Supply to Settlements with Municipal Organization No. 1053 dated 3/7/1968 . The annual installment payments made to the General Directorate of Affairs will be postponed for 3 months from the date of entry into force of this article. These periods can be extended by the President up to 3 months from the end. These are collected at the end of the postponed period, in monthly equal installments until the postponed period, without any delay increase or interest.

Snooze duration 01/04/1961 213 dated Situated Tax imposition and does not handle criminal law and interrupt the limitation period in time until the term dysfunctional world-system approach will be extended.  
 

10. Travel agency fee is not paid and the travel agency document can be transferred 
 

The annual dues regulated in article 35 of the Law on Travel Agencies and Travel Agencies Association No. 1418 dated 14/9/1972 are not collected in 2020.

      11. Prohibition of unreasonable price increases

With the Article 14 of this Law, an additional item added to the Law No. 6585 on the Regulation of Retail Trade has been regulated by the producers, suppliers and retail businesses that an exorbitant increase in the sales price of a good or service cannot be made.

I request information.

Note: With this circular, it is aimed to summarize the recent changes in the laws.