As officially announced last night, there will be a 1 percent withholding tax on sales on E-Commerce sites as of January 1, 2025.
In a post about this found tax expert Ozan Bingöl, “It was said that withholding tax is coming to electronic commerce (e-commerce). 25% was allowed for sole proprietorship companies and 15% for capital companies. “The President used discretion to implement 1% and the rate became 1%.” he said. The official statement regarding the issue was as follows: “ANNEX DECISION TO THE PRESIDENTIAL DECISION DATED 21/12/2024 AND NUMBERED 9284
ARTICLE 1- The following paragraph has been added to the first paragraph of Article 1 of the Decision dated 12/1/2009 and numbered 2009/14592 of the Council of Ministers regarding the withholding rates included in Article 94 of the Income Tax Law No. 193.
“18. In accordance with the provisions of the Law on the Regulation of Electronic Commerce No. 6563 dated 23/10/2014, 1% of the payments made by intermediary service providers and electronic commerce intermediary service providers to service providers and electronic commerce service providers due to their activities within the scope of the said Law.”
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ARTICLE 2- The annex to the decision of the Council of Ministers dated 12/1/2009 and numbered 2009/14593 regarding the tax deduction rates to be made from the incomes and revenues subject to tax deduction of institutions subject to limited liability listed in Article 30 of the Corporate Tax Law No. 5520. The first paragraph of Article 1 of the Decision is as follows: clause has been added.
“16- According to the provisions of the Law on the Regulation of Electronic Commerce No. 6563 dated 23/10/2014, intermediary service providers and electronic commerce intermediary service providers are entitled to provide services to service providers and electronic commerce service providers who have a workplace or permanent representative in Turkey due to their activities within the scope of the said Law. 1% of the payments they make.”
ARTICLE 3- The following paragraph has been added to the first paragraph of Article 1 of the Decision dated 12/1/2009 and numbered 2009/14594 of the Council of Ministers regarding the tax deduction rates included in Article 15 of the Corporate Tax Law No. 5520.
“1% of the payments made by intermediary service providers and electronic commerce intermediary service providers to service providers and electronic commerce service providers due to their activities within the scope of the said Law, in accordance with the provisions of the Law on the Regulation of Electronic Commerce No. 6563 dated 12-23/10/2014.”
ARTICLE 4- This Decision shall enter into force on 1/1/2025.
ARTICLE 5- The provisions of this Decision shall be enforced by the Minister of Treasury and Finance.”