With the Income Tax General Communiqué (Serial No: 318), published on January 12, 2022, the procedures and principles of the income exemption granted to social content producers and application developers for mobile devices with Repetitive Article 20/B have been regulated.
The Communiqué stipulates certain banking and revenue conditions for natural persons who are social content producers or who develop applications for mobile devices such as smartphones and tablets in order to benefit from the income tax exception under the Tax Code No.193.
First, these persons are obliged to open an account in a bank established in Turkey for the purpose of collecting all the revenue obtained as a result of these activities. Second, a person’s total revenue from these activities must not exceed the amount set forth in the fourth income tax bracket under the Tax Code No.193. Taxpayers who do not meet both conditions cannot benefit from this exception.
The Communiqué also states that individual content producers and app developers who profit within the scope of the exemption in the Tax Code No.193 but who cannot benefit from the exemption due to exceeding the maximum revenue of the fourth income tax bracket, are not obliged to withhold on payments such as wages and rent. Other than this, different from the Code, the Communiqué regulates the situations that may be peculiar in the application of this exception and explains the application with examples.
The Communiqué entered into force on the date of its publication. The text of the communiqué may be accessed via the link below:
https://lnkd.in/dwRXTYRf