Türkiye Announces Plans To Modernise Tax System, Curb Avoidance
The Turkish government is working on a plan to modernise the country's tax system, aiming to increase revenue by addressing tax avoidance and eliminating unnecessary incentives, according to new reports.
Finance Minister Mehmet Simsek confirmed that preliminary draft proposals include a minimum 15% corporate tax on multinational companies. The government is also considering raising the corporate tax on public-private partnerships (PPPs) from 25% to 30%, confirming a report last month by state-owned Anadolu Agency.
While there are no plans to introduce a transaction tax on stock purchases and sales, taxes on stock market gains could be proposed in the future. These measures are part of broader efforts to improve fiscal discipline and price stability after years of economic turmoil.
In an effort to combat soaring inflation, Türkiye's central bank has significantly increased interest rates from 8.5% to 50% since June last year. Annual inflation reached 75% in May but was expected to have decreased in June. Simsek has been leading a year-long policy-tightening programme aimed at addressing the country's high inflation rate.
Simsek stated that the tax plan is still in its early stages and may undergo changes before being presented to parliament. He added that there were no plans to introduce a transaction tax on stock purchases and sales, but the government could propose taxes on stock market gains sometime in the future.
Earlier this month, an economy official said Türkiye had almost finalised work on imposing a transaction tax on stock purchases and sales as well as crypto assets.
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