Adjustments made by the Presidential Decree No. 9284

With the regulations introduced by Law No. 7524 published last July, withholding tax was introduced for taxpayers operating in the field of electronic commerce in order to combat informality and ensure tax security.

With the Presidential Decree published, the withholding rate has been determined.

Following service providers are in scope of the application:

1. Natural and legal persons engaged in electronic commerce activities (service providers)

2. Intermediary service providers that allow electronic commerce service providers to make contracts or place orders for the supply of goods or services of electronic commerce service providers in the electronic commerce marketplace

As of 1/1/2025, 1% withholding tax will be applied on the payments to be made due to the activities within the scope of the Law No. 6563 on the Regulation of Electronic Commerce.

The following service providers are obligated to withold;

·        Intermediary service providers (Natural and legal persons who provide the electronic commerce environment for the economic and commercial activities of others.)

·        Electronic commerce intermediary service providers

Those who are liable for withholding tax will make deductions from the payments they intermediate and pay them to the tax office.

Income and corporate taxpayers will offset these deducted taxes in their quarterly advance tax returns and annual tax returns.

Taxes deducted in the last quarter of the year in the annual declaration and the amounts that could not be deducted in the provisional tax declarations will be deducted and overpaid amounts will be refunded.