Turkey to impose minimum corporate tax in latest savings plan

Turkey is nearly finished work on a new savings plan that aims to strengthen fair taxation including a minimum corporate and income taxes, state-run Anadolu Agency said on Thursday.

According to a draft bill to be submitted to parliament soon, a minimum 15% corporate tax will be imposed on multi-national companies that have more than 750 million euro ($804 million) annual consolidated revenue, Anadolu said.

The move would mark another step in a policy-tightening programme that Finance Minister Mehmet Simsek is spearheading to boost fiscal discipline and price stability, after years of turmoil that fuelled soaring inflation.

Citing the Anadolu report in a post on social media platform X, Simsek said the package aims to raise the share of direct taxes. “With these regulations, we will strengthen fair taxation,” he said.

Anadolu said the government would include a hybrid model that compares corporate taxpayers’ declarations and revenues.

A minimum income tax model will also be introduced for commercial, agricultural and self-employment earnings in which declarations and incomes will be compared, it reported.

Corporate tax for companies that run public-private partnership projects, including new bridges and highways, will rise to 30% from 25% under the new plan, Anadolu also said.

Ankara had telegraphed more steps after having unveiled a ” savings and productivity ” plan last month focused on pausing construction of most new state buildings and public institutions’ purchase of vehicles for three years.
Source: Reuters (Reporting by Huseyin Hayatsever and Nevzat Devranoglu, Editing by Jonathan Spicer)