Law No. 7256 Introduces Several Amendments To Tax Legislation

New Developments

The Law on the Restructuring of Certain Receivables and Amendments to Certain Laws No. 7256 ("Law No. 7256") published on the Official Gazette No. 31307 on November 17, 2020 introduced several amendments to the tax legislation.

This alert provides a brief summary of the amendments we find important.

What Changes Does the Law No. 7526 Introduce?

• With the amendment to Article 94 of the Income Tax Code No. 194 ("ITC"), taxpayers will be deemed to have distributed dividends for shares they acquired themselves and 15% of withholding tax will be applied on
  • the difference between the acquisition amount and face amount of the equity or the share, if they acquire the shares through a capital decrease, as of the date of the registration thereof to the trade registry;