Corporate Tax Increases, Treasury Transfers KKM Burden to CBRT

The newly appointed economy management took some new decisions in order to balance the budget. In line with these decisions, the 20% corporate tax rate foreseen for 2023 will be applied as 25 percent. However, the corporate tax rate will be 30 percent in sectors such as financial leasing, factoring, electronic payment companies, capital market institutions and insurance companies.

For registered and registered vehicles and for new vehicles to be registered until the end of the year, a one-time additional motor vehicle tax will be applied. This tax will be paid by vehicle owners and will be valid for new vehicles registered until the end of the year.

An important regulation was also made for institutions that promote exports. The corporate tax deduction rate applied exclusively to earnings from exports was increased from 1 point to 5 points. As it is understood from the adjustments made, it is planned to support exporters in company with the rapidly depreciating TL.

However, according to the latest statements, the Treasury will transfer the KKM support application to the CBRT. The CBRT will now provide the support provided by the Treasury for counter-party TL transactions at KKM.

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