Turkish commission approves plan to make 5 pct tax cut for regular corporate taxpayers

A Turkish parliamentary commission has approved a law proposal that stipulates a 5 percent cut in taxes for corporate taxpayers who pay on regular basis and on time. 

According to the proposal, which was accepted late on Feb. 15, all corporate taxpayers will pay 5 percent lower than the calculated taxes if they meet a number of conditions, Reuters has reported. 

Income tax payers in commercial, agricultural or professional activities and financial, banking and insurance companies will be exempted from the tax cut. 

The total discount per each taxpayer will not be higher than 1 million Turkish Liras. 

The proposal also includes value added tax exemption for the first property sales by non-resident foreigners under certain conditions. 

The government has recently cut special consumption taxes on a number of electronic home appliances and has extended VAT cuts on property acquisitions in a bid to revive domestic demand.

Special consumption taxes on air conditioners, refrigerators, washing machines, dish washers, vacuum cleaners and some small home appliances have been zeroed from 6.7 percent for the acquisitions until April 30, according to a cabinet decision published in the Official Gazette on Feb. 3.

Cuts in VAT for property acquisitions have also been extended to September by the cabinet.