# A Brief Guide to Turkey’s New 1% Withholding Tax in E-Commerce **A Brief Guide to Turkey’s New 1% Withholding (Stopaj) in E-Commerce** *(Effective as of January 1, 2025)* --- ### Table of Contents 1. [Currency Update](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#currency-update) 2. [Introduction](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#introduction) 3. [Legal Background](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#legal-background) 4. [9 Questions About the New 1% Withholding](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#9-questions-about-the-new-1-withholding) * 4.1 [Who Is Obliged to Withhold?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#41-who-is-obliged-to-withhold) * 4.2 [What Is the Withholding Base?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#42-what-is-the-withholding-base) * 4.3 [What Is the Withholding Rate?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#43-what-is-the-withholding-rate) * 4.4 [When and How to Declare the Withholding?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#44-when-and-how-to-declare-the-withholding) * 4.5 [Which Payments Are Exempt?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#45-which-payments-are-exempt) * 4.6 [How Do Refunds Work?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#46-how-do-refunds-work) * 4.7 [When Can the Withheld Amounts Be Credited?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#47-when-can-the-withheld-amounts-be-credited) * 4.8 [Any Practical Examples?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#48-any-practical-examples) * 4.9 [When Does the New Rule Come Into Effect?](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#49-when-does-the-new-rule-come-into-effect) 5. [Q&A Section](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#qa-section) 6. [Conclusion](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#conclusion) 7. [About the Author](https://chatgpt.com/c/67849050-2044-8003-8105-89ab18401634#about-the-author) --- ### Currency Update | **GBP** | **EUR** | **USD** | | --- | --- | --- | | 43.01 | 36.17 | 35.41 | --- ### Introduction On **January 1, 2025**, a new **1% withholding tax (stopaj)** in the e-commerce sector will take effect in Turkey. This measure aims to **enhance tax compliance** and **reduce unregistered transactions**. Although the law mentions higher rates (such as 25% for income tax and 15% for corporate tax), the **Presidential Decree No. 9284**, dated December 21, 2024, has set the withholding rate at **1%**. For **e-commerce sellers** and **service providers**—as well as international stakeholders keeping track of Turkish regulations—this guide offers an easy-to-follow overview, with **short explanations**, **bold highlights**, and **practical examples**. --- ### Legal Background * **Law No. 7524 (Torba Kanun, published on August 2, 2024):** Introduced new withholding rules under **Law No. 6563 on the Regulation of Electronic Commerce**. * **Key Definitions:** * **Intermediary Service Provider (Aracı Hizmet Sağlayıcı):** Any real or legal person that provides an electronic environment allowing third parties to conduct economic or commercial activities. * **Electronic Commerce Intermediary Service Provider:** Specifically refers to those operating an **e-commerce platform** (also called a pazar yeri or marketplace) where sellers list products/services. * **The Withholding Mechanism:** These intermediaries must **withhold tax** on payments made to **service providers** and **e-commerce service providers** for the sale of goods or services in online marketplaces. --- ### 9 Questions About the New 1% Withholding #### 1) Who Is Obliged to Withhold? **Intermediary service providers** and **electronic commerce intermediary service providers** must **withhold tax** on payments they make to sellers (referred to as “service providers” or “e-commerce service providers”) within the scope of Law No. 6563. > **Key Point:** If the **final payment** goes directly from the customer to the seller (i.e., no intermediary is involved in the actual transfer of funds), then **no withholding applies**. --- #### 2) What Is the Withholding Base? The **withholding base** is generally the **gross payment** (excluding VAT) made to the seller. Specifically: * **Price of Goods or Services (excluding VAT and any accommodation tax)** * **Any bonuses, awards, or incentives** paid by the intermediary to the service provider Even if a commission, shipping fee, or bank fee is deducted before transferring the balance to the seller, the tax base remains the **full pre-deduction amount** (again, minus VAT). --- #### 3) What Is the Withholding Rate? Although law initially set the rate much higher (**25%** for individual taxpayers, **15%** for corporations), the **Presidential Decree** lowered it to **1%**. The President retains authority to **reduce it to zero** or **increase it up to one fold**. --- #### 4) When and How to Declare the Withholding? * **Monthly Filing:** The **withholding tax** must be reported via the **Muhtasar ve Prim Hizmet Beyannamesi** (Withholding and Premium Service Tax Return) by the **26th of the following month**. * **Payment Deadline:** The withheld amount is also due by **the same date** (26th). * **Data Reporting:** Detailed information about **each seller** (e.g., name, tax ID, withheld amount) must be submitted **electronically** (via the BTRANS system) by the **end of the filing month**. --- #### 5) Which Payments Are Exempt? Withholding **does not apply** if the recipient: * **Has no tax liability** in Turkey (e.g., not engaged in commerce or agriculture, or not a registered taxpayer) * **Is a tax-exempt tradesperson** * **Operates under simple taxation (basit usul)** * **Benefits from the special income tax exemption** (e.g., certain social content creators and mobile app developers under the **relevant articles of the Income Tax Law**) **Personal items** sold online (like a second-hand coat or household items) are also **exempt** even if the seller is normally a taxpayer—provided the transaction is clearly unrelated to ongoing commercial activities. --- #### 6) How Do Refunds Work? * **Before Filing:** If the **return** or **cancellation** of the goods/services happens before the **withholding is declared** to the tax office, the intermediary can simply **re-adjust its records** and **no withholding** is declared. * **After Filing:** If the **customer returns** the product **after** the withholding tax has been **declared and paid**, the **stopaj** cannot be corrected in the monthly filing. The seller can reclaim the withheld amount through **annual or provisional tax returns** by offsetting it against other taxes due or requesting a refund from the tax office. --- #### 7) When Can the Withheld Amounts Be Credited? All **withheld taxes** can be **credited** against: * **Quarterly Provisional (Geçici) Tax** * **Annual Income Tax or Corporate Tax** Any **excess** remaining after the credit is **refundable** (either **cash** or **offset** against other tax debts). --- #### 8) Any Practical Examples? * **Example A:** A household electronics retailer sells through an e-commerce platform. The total invoice (excluding VAT) is 1,000 TL. If the marketplace charges a 50 TL commission and then pays 950 TL to the retailer, the **withholding base** is still **1,000 TL**. At **1%**, the withheld tax is **10 TL**. * **Example B:** A private individual sells a **personal second-hand sofa** via a marketplace. Since this sale is not part of an ongoing commercial activity, **no withholding** applies. --- #### 9) When Does the New Rule Come Into Effect? The **new withholding** mechanism begins on **January 1, 2025**. Payments made to sellers **on or after this date** are subject to **1%** stopaj, provided there is an intermediary collecting and transferring the funds. --- ### Q&A Section **Q:** *Is the 1% withholding the final tax on my income?* **A:** No. It serves as a **prepaid tax**. It can be **deducted** against your final **income or corporate tax**. If your annual tax liability is zero, you may apply for a **refund**. **Q:** *What if I operate my own e-commerce website without an intermediary?* **A:** If your **customer pays** you **directly** (i.e., no intermediary transfers your revenue to you), you **do not** incur a **withholding** on these sales. **Q:** *Can the withholding rate change later?* **A:** Yes. The President has the power to **reduce the rate to 0** or **increase it up to double** (e.g., **2%**). **Q:** *Do I still file my own tax returns if I have withholding deductions?* **A:** Yes. You are still obliged to **file** annual or provisional tax returns and **reflect** these withholdings for final tax calculation. --- ### Conclusion Turkey’s new **1% e-commerce withholding tax** is designed to capture previously unregistered activities and ensure **faster tax collection**. While it represents an added **compliance** step for businesses, it also **streamlines** tax collection and provides a **credit/refund mechanism** to avoid double taxation. For **foreign-based** or **internationally active** stakeholders, staying informed about these regulations—and coordinating with your **local tax advisors**—is crucial to ensuring smooth operations in **Turkey’s growing e-commerce market**. For your questions you can reach us --- ### OZM-CONSULTANCY info@ozmconsultancy.com ![](https://cdn.hashnode.com/res/hashnode/image/upload/v1736741146609/7c163e15-89e8-4924-bd24-badaa16efe65.png align="center")