Digital Services Tax

On October 24, 2019, a legislative proposal regarding the tax regulations for various sectors has been adopted by the Plan and Budget Committee in the Grand National Assembly of Turkey. The adopted regulations include the Digital Services Tax Law ("the Law"). According to the law; domestic and foreign digital service providers that generate an income in the digital environment in Turkey will pay 7,5% of their revenue as tax. The President is authorized to increase the tax rate up to 100 % or to reduce the tax rate up to 1 percent according to the type of services.

According to the law, the revenue obtained from the following services offered in Turkey (regardless of the location of the service provider) are subject to digital services tax;