Istanbul.Accountants

TAX INCENTIVES IN TURKEY

 

A- EXEMPTION OF INVESTMENT DEDUCTION

 

Being valid from 01.01.2006, with the Law numbered 5479, Article 19 of the Income Tax Law headed “Exemption of Investment Deduction on Business and Agricultural Earnings” has been abolished, and Temporary Article 69, attached to this Law, regulates the transition period implementations. According to this;

 

• Exemption amount which could not be deducted before the date of 01.01.2006, by reason of insufficient earnings in previous years,
• Exemptions which will be calculated on account of investment expenditures which is done after the date of 01.01.2006 within the context of incentive certificates based on applications submitted before the date of 24.04.2003 for the investments which begun within the framework of Additional Articles1-6 of the Income Tax Law abolished previously, 
• Exemptions which will be calculated on account of investment expenditures following the date of 01.01.2006, given that providing economic and technical integrity with investments which began before the date of 01.01.2006 within the scope of Article 19 of Income Tax law,

can be deducted as exemption of investment deduction.

 

( Income Tax Law a.19; Income Tax Law Temporary Article 61; Income Tax Law Temporary Article 65; Income Tax Law Temporary Article 69; Income Tax Circular/1; Income Tax Circular/22; Income Tax Circular/23; Income Tax Circular/32)

 

B- DEDUCTION OF RESEARCH & DEVELOPMENT (R & D)

 

Being valid from 31.07.2004, %40 of expenditures oriented to new technology and searching of knowledge realized in the structure of enterprise and being valid from 01.04.2008 %100 of these expenditures can be deducted from the corporate income declared by annual tax return. 

(Income Tax Law a.89/1-9; Corporate Tax Law a.10/1-a) 

 

C- OTHER INCENTIVES REGARDING RESEARCH & DEVELOPMENT (R&D) ACTIVITIES

 

1-    R&D Deduction

 

• R&D expenditures incurred in the enterprises functioning as technology centers, 

• R&D expenditures incurred in the R&D centers, 

• Public institutions, R&D and innovation projects supported by public enterprises and establishments, foundations established pursuant to the Law or projects that supported by international funds, 

• Pre-competition cooperation projects,  

• Enterprises benefit from the capital support provided to techno enterprises;

All of the R&D and innovation expenditures mentioned above and;

• One half of the increase in expenditures compared to the previous year at R&D centers that recruit 500 and more equivalent full-time R&D personnel, are made subject of discount while determining the corporate income and trade income in accordance with article 10 of Corporate Tax Law and article 89 of Income Tax Law.

Besides, these expenditures shall be redeemed by depreciation through the Tax Procedure Law ( Law no: 213) When there is no economic asset created, these expenditures shall be directly recorded as an expense. The R&D discount that was not made the subject of discount in the related fiscal year due to the inadequacy of profits can be transferred to the following fiscal years. The transferred amount shall be increased by the revaluation rate determined for each year according to Law No: 213 in the following years. ( Law No: 5746 a.3/1)

 

2-    Income Tax Withholding Incentives

 

Wages of R&D and back-up staff except public servants recruited in the following enterprises are exempt from income tax, at a rate of %90 for staff with PhD degrees, and at a rate of %80 for the other staff:

 

- Staff recruited in enterprises that function as technology centers,

- Staff recruited in the R&D centers;

- Staff recruited in R&D and innovation projects supported by public enterprises and establishments, foundations established pursuant to the Law or projects that are supported by international funds,

- Staff recruited in R&D and innovation projects undertaken by The Scientific and Technological Research Council of Turkey (TUBITAK),

- Staff recruited in enterprises that are entitled to benefit from the capital support provided to technological enterprises,

- Staff recruited in pre-competition cooperation projects. 

 

Besides, the income tax calculated after applying minimum living discount over wages of R&D and back-up staff stated in the 5746 Numbered Encouragement of Research and Development

 

Law,  are cancelled at a rate of %90 for staff with PhD degrees, and at a rate of %80 for the other staff, by deducting from the tax assessed over withholding tax return until 31/12/2013. (Income Tax Law Temporary article 75)

 

3-    Insurance Premium Support

 

For each employee, one half of the insurance premium of the employer which is calculated over the wages of the R&D and back-up staff gained in the scope of the R&D and innovation activities shall be funded by a budget of the Ministry of Finance for five years. The insurance premium of personnel, whose wages are exempted from income tax pursuant to provisional article 2 of Law numbered 4691 concerning Technology Developing Zones, calculated over their exempted wages and also one half of the employer’s share of insurance Premium shall be funded by a budget of the Ministry of Finance for five years at maximum as long as exemption implemented. (Law No: 5746 a.3/3)

 

4-    Stamp Duty Exemption

 

All documents drawn up in connection of all types of R&D and innovation activities pursuant to Law Numbered 5746 have been exempted from stamp duty. ( Law No: 5746 a.3/4)

 

5-    Techno Enterprise Capital Support

 

In order to support the transformation of technology and innovation oriented business ideas to enterprises having high potential in creating added value and qualified staff; techno enterprise capital support of up to 100,000 TL shall be granted for once without the demand for a guarantee. The techno enterprise capital support shall be granted to the persons having formal education and will be graduated from any field of universities in one year; master students, doctorate students or had the bachelor, master or doctorate degree maximum five years ago before the pre-application date. (Law No: 5746 a.3/5)

 

D- GAIN EXEMPTION ON EDUCATION AND INSTRUCTION BUSINESSES

 

Gains derived from operating private schools of pre-school education, primary education, private education and secondary education is exempt from income tax for the five taxation period after the assessment of the related Ministry and within the framework of the principles and procedures determined by the Ministry of Finance. The exemption shall be valid for the five taxation period following the first taxation period which the schools had begun their activity. 

Those who want to benefit from the exemption have to apply to our Ministry in written following the beginning of their activity. 

 

(Income Tax Law a.20; Corporate Tax Law a.5/1-I; Income Tax General communiqué 254; Law numbered 5228 Temporary a.1)

 

Free education and instruction services given in condition that not to pass over %10 of capacities of relevant period by the private schools subjected to the provisions of Law numbered 625, are exempt from value added tax. (Value Added Tax Law a. 17/2-b)

 

Also, gains derived from operating rehabilitation centers which are affiliated with trusts to which The Council of Ministers gave tax exemption or associations beneficial to public interest are exempt from corporate tax for five taxation period. (Corporate Tax Law a.5/1-ı)

 

E- EXEMPTION IN VEHICLES, OIL SEARCHING AND INCENTIVE CERTIFICATED INVESTMENTS

 

(1)

         Delivery of sea, air and railway vehicles,

         Delivery of floating system and vehicles,

         Delivery and services done concerning the manufacture and construction of these vehicles.

         Modification, maintenance and repair services of these vehicles

 

provided to the taxpayers whose businesses are leasing, air and railway transportation vehicles, floating system and vehicles or operating these vehicles in various forms are exempt from value added tax.

 

(Value Added Tax Law a. 13/1-a, Value Added Tax Law General communiqué II/B-1) 

(2) Exploration, operating, enrichment and refining activities concerning gold, silver and platinum and the delivery of goods and services provided to the businesses deal with oil exploration activities within scope of Oil Exploration Law provisions; are exempt from value added tax.

(Value Added Tax Law a.13/1-c, Value Added Tax Law General communiqué II/B-3, II/B-4)

 

(3) Delivery of machines and equipment to the taxpayers who has the investment incentive certificate are exempt from value added tax, under condition that the delivery is in the scope of this certificate.

(Value Added Tax Law a.13/1-d, Value Added Tax Law General communiqué II/B-5) 

 

(4) Delivery of goods and services concerning businesses mentioned hereafter to the taxpayers who deal with construction, restoration and widening businesses of ports and airports by themselves or make others deal with these businesses are exempt from value added tax. (Value Added Tax Law a. 13/1-e, Value Added Tax Law General communiqué II/B-6)

 

The delivery of goods listed under Annex II List of Excise Tax Law; under condition that these goods are provided to the firms, who deal with exploration and production of oil according to the 6326 numbered Oil Law to be used in those activities, are exempt from tax. (Excise Tax Law a.7.1.b) (Excise Tax Law List (I) General Communiqué II/C-2)

 

F- TAX INCENTIVES IN INDUSTRIAL ZONES

 

Incentives oriented to income and corporate taxpayers doing business in industrial zones are stated in Incentive of Investments and Employment Law numbered 5084.

 

The tax payers who function in these regions are supported with income tax withholding incentive, employer shares of insurance premium, free investment space and energy support.

 

1-  Income Tax Withholding Incentive

(Law numbered 5084 a.3, a.7/h and General communiqué of support for investment and employment serial number 1 and number 2)

 

2-  Employer’s Contribution of Insurance Premium Incentive:

(Law numbered 5084, a.4, a.7/h)

 

3-  Free Investment Place Assignment:

(Law numbered 5084, a.5)

 

4-  Energy Support

(Law numbered 5084, a.6, a.7/h)

 

5-  Duty Exemption

 

Allotting or distribution or integration procedures of the real properties in Organized industry or technology development regions are exempt from duties. (Duties Law a.59/n)

 

G- TAX INCENTIVES IN TECHNOLOGY DEVELOPING ZONES

 

According to Technology Developing Zones Law artificial article 2:

 

-     Gains derived from software and research& development activities in technology developing zones by the taxpayers who do business in mentioned zones are exempt from income and corporate tax till 31.12.2023.

 

Executive company is exempt from all kinds of taxes, fees and duties related with the implementation of this law.

 

Wages of R&D staff and back-up staff related to these jobs working in these regions are exempt from all kinds of taxes till 31.12.2023.

 

-     Wages of researcher, software programmer and research & development personnel related to these jobs in these zones are exempt from income tax till 31.12.2023.

 

-     Gains acquired within the scope of application of Technology Developing Zones Law numbered 4691 by executive companies of technology developing zone are also exempt from income or corporate tax till 31.12.2023.

 

These exemptions shall be also applied to the executive company of Scientific and Technological Research Council of Turkey (TÜBİTAK) - Technology Free Zone of Marmara Research Center, to the income and corporate taxpayers doing business in this zone and to the wages of researcher, software programmer and research & development personnel working in this zone.

 

(Technology Developing Zones Law Temporary Article 2, Corporate Tax General Circular 1)

 

Within the period in which the gains of entrepreneurs doing business in technology developing zones are exempt from income or corporate tax; delivery and services which are produced exclusively in these zones and in the form of system management, data management, business applications, sectorial, internet, mobile and military command control application software are also excluded from value added tax. (Value Added Tax Law Temporary Article 20)

 

Allotting or distribution or integration procedures of the real properties in Organized industry or technology development regions are exempt from duties. (Duties Law a.59/n)

 

H- TAX INCENTIVES APPLIED IN FREE ZONES

 

According to the artificial article 3 of Free Zone Law numbered 3218: 

 

1-     Taxpayers who has license to function in free zones which founded before and at the date of 06/02/2004, are exempt from income and corporate tax for the income they derived in these zones limited to the period stated in their license.

 

2-     Until the end of the annual taxation period of full membership date to European Union: 

 

a.     Income of the tax payers who deal with manufacturing in free zones derived from the sale of these manufactured goods are exempt from income or corporate tax. 

 

b.     The wages of the staff who are working for the tax payers exporting %85 of the FOB cost of the products produced in free zones, are exempt from income tax. The tax which could not be collected on due date since the total sales amount is below %85, is collected without any penalty with the late fee. 

 

All procedures and written documents regarding the activities within free zones are exempt from stamp duty and other duties. 

 

I- TAX INCENTIVES APPLIED IN ORGANIZED INDUSTRIAL ZONES

 

Incentives regarding the income and corporate taxpayers located in organized industrial zones are stated in Incentive of Investment and Employment Law numbered 5084. Taxpayers functioning in these regions covering the provinces in scope of the law numbered 5084 are supported with income tax withholding incentive, employer contribution of insurance premium incentive, free investment land allocation and energy support.

 

1. Income Tax Withholding Incentive

(Law numbered 5084 a.3, a.7/h and General communiqué of support for investment and employment serial number 1 and number 2)

 

2. Employer’s Contribution Incentive

(Law numbered 5084, a.4, a.7/h)

 

3. Free Investment Place Assignment

(Law numbered 5084, a.5)

 

4. Energy Support

(Law numbered 5084, a.6, a.7/h)

 

5. Legal entity of organized industrial zones is exempt from all types of tax and fees about the implementation of Organized Industrial Zones Law numbered 4562.

 

Wastewater fee is not taken from the zones operating a water treatment plant.

(Law n.4562, a.21)

 

1-  Land and work-place deliveries of economic entities formed for the foundation of organized industrial zones are exempt from Value Added Tax (Value Added Tax Law a.17/4-k)

2-  Economic entities founded by public body or professional institutions with real and legal entities, using all of its income to meet the requirements of these places, to prepare the infrastructure of organized industrial zones and small industrial sites and to ensure the common requirements such as: land, electricity, gas, steam and water are exempt from corporate tax. (Corporate Tax Law a.4/n)

3-  Buildings in organized Industrial regions benefit from real estate tax exemption for the following 5 years after the finish of their construction. (Real Estate Tax Law a.5/f)

4-  Allotting or distribution or integration procedures of the real properties in Organized industry or technology development regions are exempt from duties. ( Duties Law a.59/n)

5-  The buildings and plants constructed at the Organized industry zones, industries, and Small Crafts Sites are exempt from Construction Duty and duty of the certificate of occupancy. ( Revenues of Municipalities Law a.80)

 

J- TAX, DUTY AND FEES EXEMPTION IN PROVIDING CREDITS

 

Papers constructed for acquiring, guarantees, re-payment of credits, which will be used by Banks, credit enterprises abroad and international associations, and the signs over these papers (Except usage of credits) are exempt from stamp duty. (Stamp Tax Law Table number IV- 23)

Also;

 

Transactions caused by establishment, merging, assignation, capital raise, splitting off and type alteration of joint stock, shared commandite and limited companies and transactions related to providing, guarantees, re-payment and bonds of credits which are given by banks, overseas credit organizations and international institutions shall not be subjected to duties (except trial duties). (Duties Law a.123)

 

The transfer of movables, immovable and intangible assets to the leasing firm and the re-transfer of these assets by the leasing firm to the assignor firm and the mortgage transactions related to these transfers are exempt from duties. 

 

The exemptions regarding the duties shall not be applied to the “duty of exploration” which is one of the “Judiciary duties” and to the “Seizure, delivery and selling duty”  which is one of the “enforcement and bankruptcy duties”.  (Duties Law a.123)

 

K- TAX INCENTIVES FOR INCREASING THE INVESTMENT AND EMPLOYMENT

 

Incentive of Investment and Employment Law numbered 5084 conducts; income tax withholding incentive, employer contribution of insurance premium incentive and energy support. 

 

The new investments at the provinces within the scope of the law benefits from the supports and incentives stated in article 3,4 and 6 of this law, for the following periods:

 

-       Till the date of 31/12/2012 if the investment finishes until 31/12/2007 under conditions stated in article 4

-       5 years if the investment finishes until 31/12/2007

-       4 years if the investment finishes until 31/12/2008

-       3 years if the investment finishes until 31/12/2009 (Law numbered 5084a7/h) 

 

1.    Income Tax Withholding Incentive

 

The burden on the employment is decreased as the income tax amount which is assessed due to the new recruitment is cancelled on the income withholding tax declaration of the employer. (Law numbered 5084 a.2, a.3, General communiqué of support for investment and employment serial number 1 and number 2)

 

The income tax withholding incentive stated at Law numbered 5084 article 3 for the investments completed until the date of 31/12/2004, is ended at the date of 31/12/2009.

On the other hand, according to the article 7/h of Law numbered 5084, the period for benefiting the income tax withholding incentive due to the new investments at the provinces stated at this law shall be applied as follows:

 

       5 years starting from the date of completion for the investments completed between 01/01/2005-31/12/2007

 

       4 years starting from the date of completion for the investments completed between 01/01/2008-31/12/2008

 

       3 years starting from the date of completion for the investments completed between 01/01/2009-31/12/2009

 

Besides, the businesses at Bozcada and Gökçeada which are the districts of Çanakkale province; shall benefit from the income tax withholding incentive stated at Law numbered 5084 article 3 for five years ( up till 4/4/2012) starting from the date of 04/04/2007 in case they fulfill the conditions stated at this article . (03/03/2010 dated and 2010-2 numbered Incentive for Investment and Employment Circular)

 

2.    Employer’s Contribution in Insurance Premium Incentive

The employer’s contribution in ınsurance premiums which are assessed on the incomes base for the premiums according to the law numbered 506 article 72 and 73 for the newly recruited workers who are employed by the income or corporate tax payers at the provinces within the scope of the incentive law, are fully or partly paid by the Treasury. (Law numbered 5084, a.4)

 

3.    Free Investment Place Allocation

Terrain or land belongs to the Treasury, supplementary budgeted institutions, municipalities or provincial administrations shall be transferred or certificate of occupancy shall be given to the real or legal persons who invest in the provinces stated at the law with a minimum of 30 employees. (Law numbered 5084, a.5)

 

4.    Energy Support

%20 of the electricity expenditures of the investments between 01/04/2005-31/12/2008 in the provinces stated in law on livestock (fishery products and chicken farming included), greenhouse, certified seed raising and cold stores which has minimum 10 employees and on manufacturing, mining, accommodations for tourism, education or health which has minimum 30 employees, are paid by the Treasury. (Law numbered 5084, a.6)

 

5.    Excise Tax Support

The deliveries of the following goods stated at Annex I list Table (A) of Excise Tax Law until 31/12/2012 are exempted from excise tax:

       2710.19.61.00.11, 2710.19.63.00.11, 2710.19.65.00.11 and 2710.19.69.00.11 T.C.T.T (Turkish Customs Tariff Code) numbered goods delivered to be used in production of electricity

       2710.19.41.00.11, 2710.19.41.00.13 and 2710.19.45.00.12 T.C.T.T numbered goods delivered to be used in production of electricity to the plants which uses natural gas as primary combustible, fuel as secondary combustible with the order and approval of Energy and Natural Resources Ministry. (ETL Artificial article 5) (Excise Tax General communiqué 15) 

 

6.    Incentives Stated in 2464 Numbered Revenues of Municipalities Law

Buildings and plants constructed at organized industry regions and industry and small crafts sites are exempt from building construction duty and duty of the certificate of occupancy. (Revenues of Municipalities Law a. 80)

 

7.    Incentives Stated in 131 Numbered Real Estate Tax Law

The income and corporate taxpayers who has the certificate of tourism enterprise within the scope of Encouragement of Tourism Industry Law, are exempt from tax for five years beginning after the following year of construction or the date of certification as tourism enterprise in case a current building is allocated for that purpose. (Real Estate Tax Law a.5/b)

The buildings in organized industry regions and small crafts sites are exempt from tax for five years beginning after the budget year when construction is finished. (Real Estate Tax Law a.5/f)

 

L- TAX INCENTIVES FOR CULTURAL INVESTMENTS AND ENTERPRISES

 

The purpose of the law numbered 5225 is to make individual and society requirements are met; cultural assets and abstract cultural heritage are preserved and to make them a part of sustainable culture , to make the environment of cultural communication and interaction are activated, cultural and artistic values are produced, the opportunities to reach these values are created and developed by the society; the country’s cultural assets are kept alive and utilized as contribution to the economy, the cultural investment and enterprises to build and running of cultural centers are promoted.

Incentives that will be applied for cultural investments and enterprises in the scope of this law are as follows:

 

1. Income Tax Withholding Deduction:

 

Corporation Taxpayer Investor or entrepreneur who has license in scope of this law can deduct %50 of the income tax during the investment phase not longer than 3 years and %25 of the income tax during the business phase not longer than 7 years from the tax accrued in their withholding tax return based on their monthly insurance payroll given to the administration only for the worker wages that will be worked in the licensed investment or enterprise. (Law numbered 5225, a.5/b)

 

2. Allocation of Immovable Property:

Ministry of Culture and Tourism has the authority to allocate immovable properties for the cultural investment and entrepreneurs within the scope of this law. (Law numbered 5225,a./5a)

 

3. Deduction in Employer Contributions in Insurance Premium:

Corporation Taxpayer Investor or entrepreneur who has license in scope of this law can deduct %50 of the employer contribution during the investment phase not longer than 3 years and %25 of the employer contribution during the business phase not longer than 7 years will be paid by treasury based on their monthly insurance payroll given to the administration only for the worker wages that will be worked in the licensed investment or enterprise. In accordance with article 72 and 73 of Social Insurance Law (Law numbered 5225, a.5/c)

 

4. Water Cost Discount and Energy Support:

Cultural investment and enterprises pays the water prices at the lowest tariff of the region. %20 of the electricity and natural gas costs of this investment or enterprise are paid by the Treasury for 5 years. (Law numbered 5225, a.5/d)

 

5. Ability to Employ Foreign Personnel or Artists:

Foreign specialist personnel or artists can be employed in licensed investment or enterprises with the opinion of Ministry of Culture and Tourism not more than %10 of the personnel and with the permission of the Ministry of Labor and Social Security. (Law numbered 5225, a.5/e)

 

6. Ability to Function in Weekends or Official Holidays:

Licensed enterprises and other units in scope of license can continue their activities at weekends or official holidays in work hours identified as in license.

Assignees of a licensed investment or enterprise by the permission of the ministry are also benefit from the incentive and deduction provisions of this law (Law numbered 5225, a.5/f)

 

7. Exemption in Real Estate Tax:

The buildings allocated for the purposes stated in The Encouragement of Tourism Industry Law which belongs to income and corporate tax payers who has the certificate of tourism enterprise within the scope of Encouragement of Tourism Industry Law, are exempt from tax for five years beginning after the following year of construction of a building or the date of certification as tourism enterprise in case a current building is allocated for that purpose. (Real Estate Tax Law a.5/b)

 

M- DEDUCTED CORPORATE TAX

 

1-    Deducted Corporate Tax Implementation in Scope of Corporate Tax Law Article 32/a

The aim of the deducted corporate tax implementation within the scope of Corporate Tax Law article 32/a is to direct the savings to investments which has high value added, to increase production and employment, to encourage big scale investments in order to increase the international compete, to increase direct foreign investments, to decrease the inter-regional diversifications and to support the research and development activities in line with the aims foreseen with development plans and annual programs.

 

Deducted corporate tax anticipates lower taxation on the investments which has incentive certificate issued by Ministry of Economy. Deducted corporate tax rates stated in “Decree Regarding State Aids in Investments” which is dated 15/06/2012 and numbered as 2012/3305, are applied to the regional and big scale investments. According to the decree:

 

       Deducted tax is implemented until the deducted corporate or income tax amount reaches the investment contribution amount.

 

       If the investment is transferred after fully or partly started to operate, the assignor continues to benefit from the deducted tax rate until the date of transfer and the assignee starts to benefit from the deducted tax rate beginning from the date of transfer for the residual amount of investment contribution. 

 

2-    Incentive in Scope of Corporate Tax Law Artificial Article 4

The corporate tax rate is applied %75 discounted for the income of the tax payers who transfers their production plants which deals with textile, ready-to-wear, leather and leather manufacture exclusively to the provinces stated by the Council of Ministers until 31/12/2010 and employs 50 staff at minimum. The discounted rate is applied for five years following the budget year of the date of transfer. Income tax payers shall also benefit from this incentive. 

 

N- INCOME WITHHOLDING TAX INCENTIVE REGARDING STATE AIDS

 

For the investments done until 31/12/2023 in the provinces determined by the Council of Ministers according to their statistical regional unit classifications, national income per capita or socioeconomically development level, within the scope of the investment incentive certificates issued by the Ministry of Economy; the income tax calculated over the gross wage amount of the minimum wage applied to the employees over 16 age working and employed as it is foreseen in the incentive certificates, is cancelled from the withholding declaration fully or partly for the next 10 years after the investment starts running. 

 

O- INCENTIVES IN 4490 NUMBERED TURKISH INTERNATIONAL SHIP REGISTERS LAW AND THE LAW MAKING AMENDMENTS IN 491 NUMBERED DECREE LAW

 

The incomes derived from the transfer or running of ships and yachts registered at Turkish International Ship Register are exempt from income and corporate tax and funds. (Law numbered 4490 a. 12, Corporate Tax General communiqué 1) 

 

Buying, selling, mortgage, registration, credit, shipment agreements of the ships and yachts registered at Turkish International Ship Register are exempt from stamp duty, duties, banking and insurance tax and funds.  

 

The wages of the staff working at the ships and yachts registered at Turkish International Ship Register are exempt from income tax and funds. 

 

P- DISCOUNTED EXCISE TAX

 

- For the ships, commercial yachts, service and fishery ships registered at Turkish International Ship Register carrying freight and passengers exclusively at the navigation line, the Excise Tax Rate on fuel is applied as zero. The amount of the fuel which will be subject to the exemption is determined according to the technical specifications of the ship and that fuel amount should be registered to the journal of the ship. (Cabinet Decree 2003/5868) (Excise Tax Law List (I) General communiqué (III/B-1))

 

- In case the 2207.20.00.10.13 and 2207.20.00.10.14 T.C.T.T (Turkish Customs Tariff Code) numbered bioethanol goods which are produced by domestic agricultural products, are mixed with the 2710.11.45.00.11, 2710.11.45.00.12, 2710.11.45.00.19, 2710.11.49.00.11, 2710.11.49.00.19 T.C.T.T numbered goods listed in list (I) Table (A) of excise tax law, the excise tax amount will be applied discounted with the same ratio as the ratio of the mixed goods. The tax amount determined according to this ratio shall not be less than %98 of tax amount determined for the 2710.11.45.00.12, 2710.11.45.00.19, 2710.11.49.00.11, 2710.11.49.00.19 T.C.T.T numbered goods which does not include bioethanol numbered as 2207.20.00.10.13 and 2207.20.00.10.14 T.C.T.T. (Cabinet  Decree   2005/8704) (Excise Tax Law List (I) General communiqué (III/B-2))

 

-  In case 2710.19.61.00.11, 2710.19.63.00.11, 2710.19.65.00.11 and 2710.19.69.00.11 T.C.T.T numbered goods listed in list (I) Table (A) of excise tax law, are delivered to be used in production of electricity to be exported, the excise tax amount will be applied as zero. (Cabinet Decree 2006/10798) (Excise Tax Law List (I) General communiqué (III/B-3))

 

- In case it is determined that the 2710.19.41.00.11, 2710.19.41.00.13 and 2710.19.45.00.12 T.C.T.T numbered goods which are delivered after the tax amount in list (I) Table (A) of excise tax law is implemented, are mixed with 3824.90.97.90.54 T.C.T.T numbered “auto biodiesel” which is produced from domestic agricultural  products or the fried and expired vegetable oils collected in line with the legislation of Ministry of Environment and Urban Planning, the tax amount will be applied discounted with the same ratio as the ratio of the mixed goods. However, the tax amount determined according to this ratio shall not be less than %98 of the tax amount listed in list (I) Table (A) of excise tax law for the 2710.19.41.00.11, 2710.19.41.00.13 and 2710.19.45.00.12 T.C.T.T numbered goods. For the tax amount calculated as a result of this calculation, 4 digits after comma will be taken into consideration. For the difference between the tax amount applied formerly and the tax amount calculated according to the explained ratio, Article 12/4 of Excise tax law will be applied. (Cabinet Decree 2013/5595) (Excise Tax Law List (I) General communiqué (III/B-5))

 

- The delivery of 2711.19.00.00.11 T.C.T.T numbered “Liquefied Petroleum Gas (LPG)” goods listed in list (I) Table (A) of Excise Tax Law, to be used for production of 2901.21.00.00.19 T.C.T.T numbered “ethylene used for other purposes” is exempt from excise tax. (Cabinet Decree 2008/14061) (Excise Tax Law List (I) General communiqué (III/B-4))

 

- In case it is determined that the 2711.19.00.00.11 T.C.T.T numbered “Liquefied Petroleum Gas (LPG)” goods which are delivered after the tax amount in list (I) Table (A) of excise tax law is implemented, are used for the production of aerosol, the tax rate would be implemented as zero within the scope of refund method stated at Excise Tax Law article 12/4. (Cabinet Decree 2014/6881) (Excise Tax Law List (I) General communiqué (III/B-6))

 

- It is sustained that the tax is applied in reduced amount through refunding method for the goods; which are delivered after the tax amount in list (I) Table (B) of excise tax law is implemented, in case they are used by the manufacturers ( industry registry certified manufacturers) in manufacturing. Thus, the part of the assessed tax amount which will be deferred is determined as zero for the goods in List I Table (B) delivered by the taxpayers to be used in manufacturing of goods that are not stated in List I. (Cabinet Decree 2012/3792) (Excise Tax Law List (I) General communiqué (III/C-1))