IKMIB's tax reduction proposal signed into law

Good news for taxpayers who pay their taxes regularly: a 5 percent tax reduction… The Istanbul Association of Exporters of Chemical Substances and Products, which has undertaken numerous initiatives to advance the Turkish chemical sector, saw a proposal put forward three years ago by Chairman Murat Akyüz for "a discount for those who pay their taxes regularly" published in the Official Gazette in recent days and became law.

As with all sectors, heavy tax burdens rank among the most significant problems for the chemical sector. A major step has been taken in tax reduction, which holds an important place on the agenda of İKMİB, which works to increase Turkey's chemical sector exports and develop solutions for sectoral problems.

Under the new law, income taxpayers and corporate taxpayers who make regular payments will receive a 5 percent reduction as of 2018.

However, the law does not cover the finance, insurance and banking sectors. The taxpayer must have filed regular returns and paid their taxes on time in the year in which the reduction will be applied and in the two preceding years. According to the law, the reduction amount cannot exceed TRY 1,000,000 and may be offset against other taxes.

İKMİB Chairman Murat Akyüz İKMİB made the following comments regarding the tax reduction:

"Three years ago, in a meeting we held with the Prime Minister at the time, the Deputy Prime Minister, the Minister of Finance and other officials to discuss our exporters' problems, one of the proposals we raised was that our companies that pay their taxes regularly should receive at least a 5 percent reduction in income or corporate tax.

Subsequently, we followed up on this proposal at different forums and held discussions to reduce the tax burden on taxpayers who pay their taxes on time and regularly. When various restructurings and amnesties were introduced for those who could not pay their taxes, this situation created some discomfort among our companies that paid their taxes on time.

From this perspective, the 5 percent reduction has been welcomed with satisfaction by our sector companies. This privilege given to those who pay their taxes on time will lead to a significant increase in the number of regular tax payers in the long run.

We are very pleased that our tax reduction proposal has been implemented, and we would like to thank our government and especially the Ministry of Finance for this measure that will give our exporters room to breathe."