August 2024 Legislative Update: Key Changes You Need to Know
August 2024 Legislative Update: Key Changes You Need to Know
Table of contents
August 2024 Legislative Update: Key Changes You Need to Know
This blog post summarizes the most important legislative changes that occurred in August 2024.
Staying informed about these updates is crucial for ensuring compliance and making informed business decisions.
Key Legislative Changes:
1. Law No. 7524 Enacted
Introduction of Minimum Corporate Tax (Effective from 2025): The new legislation introduces a minimum corporate tax starting in 2025. This change is significant for all businesses as it impacts tax planning and financial reporting.
Establishment of a Tax Security System: A new system will be implemented to ensure accurate determination of real income for those engaged in commercial or professional activities. This measure is aimed at enhancing tax security and fairness.
Tax Exemption for Stock Benefits in Tech Startups: Employers in qualified tech startup companies can now provide stock benefits to employees with a tax exemption, making it a more attractive option for employee compensation.
Exclusion of Principal Tax from Reconciliation: The new law excludes the principal amount of tax from reconciliation, and penalties for non-compliance have been increased.
VAT Transfer Rights in Mergers and Acquisitions: The law allows the transfer of VAT and refund rights to the new company in cases of mergers, demergers, and transfers without any statute of limitations, subject to a tax audit.
Handling Non-Deductible VAT: VAT that cannot be deducted for five years will be removed from the deduction account, placed in a special account, and treated as an expense.
Increase in Departure Tax: The fee for leaving the country has been increased to 500 TL.
2. End of Paper Invoices by 2025
- Starting in 2025, all invoices, regardless of their amount, must be issued as e-archive invoices. This marks the end of the paper invoice era, with exceptions only in cases like system failures.
3. Back to School-Educational Expenses and Tax Implications
- As the 2024-2025 academic year begins in September, taxpayers should be aware of the tax implications of educational expenses. Detailed information can be accessed via the provided links.
4. Mandatory E-Ledger Transition
By 2025, all companies using the balance sheet method for accounting must transition to e-ledgers. This transition will eliminate the need for notarizing accounting books, though notarization of certain other books will continue.
To avoid a last-minute rush, companies are advised to start preparing for this transition in the fall.
Additional detailed guidance on the e-ledger transition will be provided in due course.
5. Final Submission of BA/BS Forms in September 2024
- According to the draft communiqué, BA/BS forms, which are submitted at the end of each month, will be required for the last time in September 2024. Other changes in the draft communiqué can be reviewed through the provided links.
6. Postponement of E-Commerce Refund Costs to 2026
- The decision to pass e-commerce refund costs to consumers has been postponed until 2026.
7. Inflation Accounting and Its Tax Impact
- The introduction of inflation accounting has caused some confusion in the market. While companies with strong equity may show losses due to inflation adjustment, others with no sales or income but strong assets might still face tax obligations in 2024. This has raised concerns regarding the practical application of the new rules.
8. High Penalties for Incomplete Cash Register Receipts
- During inspections in August, significant penalties were imposed on businesses issuing incomplete cash register receipts. Further details can be accessed through the provided links.
9. Increase in Employer Insurance Premium Costs
The short-term insurance premium rate, entirely paid by employers, has been increased from 2% to 2.25% as per the Social Insurance Law No. 5510.
The 5-point Treasury incentive for those who retired under the Early Retirement Program (EYT) and continued working at the same workplace with social security support contributions (SGDP) has been removed.
Conclusion
Staying on top of these legislative changes is essential for your business's compliance and success. We are here to help you navigate these updates and provide the necessary support. For more detailed information, don't hesitate to reach out to us