Income Tax Exemption for App Developers, Social Media Content Creators, and Tradesmen

With Law No. 7338 Amending the Procedural Tax Law and Some Other Laws published in the Official Gazette on 26.10.2021. This amendment brings the following:

• Income tax exemption has been granted for taxpayers whose earnings are subject to tax determined by the simple procedure.

• Social Media Content Creators (Influencers) and mobile application developers have been exempted from income tax. This exemption does not apply to those whose income exceeds the amount in the fourth income threshold under Article 103 of the Income Tax Law, which translates into an income exceeding 650,000 TL according to the tariff determined for 2021. In order to benefit from this exemption, the Influencers and the Mobile App Developers must open a bank account in banks established in Turkey and collect all revenues related to these activities exclusively through this account. Banks are obliged to withhold income tax at the rate of 15% as of the date of transfer and to make the necessary declarations and payments to the Tax Authority.

• An exemption from income tax has been issued for agricultural support payments made by public institutions and organizations.

• The establishment of electronic tax offices has also been provided for under the amending legislation. The Ministry of Treasury and Finance has been authorized to determine the procedures and principles that electronic tax offices should comply with.

  @Yağmur Ceylan