Withholding Tax Rate For Electronic Commerce Activities Is Set At 1%

New Developments

According to Presidential Decree No. 9284 ("Decree") published in the Official Gazette on 22 December 2024, the withholding tax rate to be applied to e-commerce activities has been set at 1%.

What Does the Decree Mean?

Article 94 of the Income Tax Law and Articles 15 and 30 of the Corporate Income Tax Law were amended by Law No. 7524 on Amendments to Tax Laws, Certain Laws and Decree Law No. 375. According to the amendments, payments made by intermediary service providers and e-commerce intermediary service providers, subject to the provisions of Law No. 6563 on the Regulation of Electronic Commerce ("Electronic Commerce Law"), to service providers and electronic service providers in relation to the activities carried out under the mentioned law are included within the scope of withholding tax. The President was authorized to determine the withholding tax rates for payments subject to this withholding tax.