Yeni Vergi: Everything You Need to Know

What is Yeni Vergi?

Yeni Vergi, a new tax system implemented in Turkey, aims to simplify and modernize the country's tax structure. It involves several significant changes, including the introduction of a new income tax scale, a simplified corporate tax system, and revisions to various indirect taxes.

Key Features of Yeni Vergi

Income Tax

The new income tax scale introduces a progressive tax rate ranging from 15% to 40%. The previous system had a flat rate of 15%. This change aims to create a more equitable tax system by placing a higher burden on higher-income earners.

Corporate Tax

Corporate tax rates have been simplified from four to two brackets: 20% for small businesses and 23% for larger companies. Previously, rates ranged from 20% to 33%. The reduced rates aim to encourage investment and economic growth.

Indirect Taxes

Yeni Vergi also incorporates changes to indirect taxes, such as value-added tax (VAT) and special consumption tax. VAT rates have been harmonized across different sectors, with reduced rates for essential goods and services. Special consumption tax rates have also been revised for certain products.

Impact of Yeni Vergi

The implementation of Yeni Vergi is expected to have several implications for individuals and businesses in Turkey:

Individuals

Higher-income earners may face increased tax liability due to the progressive income tax scale. However, lower-income earners may benefit from reduced VAT rates on essential items. The overall impact will vary depending on individual income levels.

Businesses

The simplified corporate tax system and reduced rates are likely to benefit businesses, particularly small and medium-sized enterprises. This may lead to increased investment and economic activity.

Economy

Yeni Vergi aims to improve tax revenue collection and promote economic growth by creating a more efficient and transparent tax system. It is expected to enhance Turkey's competitiveness in the global economy.

Conclusion

Yeni Vergi represents a significant shift in Turkey's tax landscape. It aims to modernize and simplify the tax system while promoting economic growth. The changes introduced by Yeni Vergi will have varying impacts on individuals and businesses, and it remains to be seen how the new system will perform in practice.