IR Global

DATE: 18.3.2020

                                                                   TAX NEWS

Subject: Package of Economic Measures to Mitigate the Economic Impact of the Coronavirus Pandemic.

On March 18, 2020, the President of Turkey announced a package of economic measures to mitigate the economic impact of the coronavirus pandemic.

Although the related regulations have not been issued yet and the details are not clarified, the President of Turkey announced a package of economic measures to mitigate the economic impact of the coronavirus pandemic as below, to financially aid companies in Turkey during this period;

 

  1. Payment of VAT, VAT 2, Withholding Tax returns and Social Security Premium Returns for April, May and June will be postponed for 6 months for the following sectors: Retail, Shopping Malls, Iron-Steel, Automotive, Logistics-Transportation, Cinema-Theater, Accommodation, Food and Beverages, Textiles and Confection, Events Organization.
  2. Accommodation tax will not be applied until November.
  3. Revenue share payments and servitude payments related to leases of hotels for April, May and June will be postponed for 6 months.
  4. VAT on domestic airline transportation will be lowered to %1 from %18 for 3 months.
  5. Deterioration of cash flow due to precautions taken against COVID-19 pandemic resulting with delayed loan and interest payments to banks, will be postponed for 3 months and additional financing support will be provided when necessary.
  6. In order to maintain capacity utilization rates during the temporary slowdown of exportation, stock financing support will be granted to exportation companies.
  7. The limit for the Loan Guarantee Fund will be raised from 25 billion to 50 billion TRY. The priority for loans will be given to companies with liquidity requirements and lack of assurance and to small and medium-sized companies.
  8. Force Majeure will be written to the credit registry of the companies which went into default in April, May and June due to precautions taken against the spreading of the virus.
  9. The conditions and procedures required to benefit Under Capacity Working Allowance application will be eased and expedited. Thus the costs of the employers temporarily shutting down their business will be lowered and income support will be provided to the workers of the mentioned business.