Turkey has announced clarifications of taxation arrangements for payment services provided by e-money and e-payment agencies. Legislation deems these e-currency transactions to be banking transactions and services. Accordingly, it is clarified that the Banking and Insurance Transaction Tax will apply to commissions, payments and other amounts which e-money and e-payment agencies collect.
General Communiqué on Expenditure Taxes No. 91 (“Communiqué”) was published in Official Gazette number 3004 on 11 March 2017, entering into effect on 1 April 2017.
Notable provisions introduced by the Communiqué include:
- e-money and e-payment agencies offering banking transactions and services (as defined under Article 28 of the Expenditure Tax number 6802) must pay Banking and Insurance Transaction Tax (“Transaction Tax”).
- Transaction Tax applies to commissions, payments and other amounts which e-money and e-payment agencies collect for services.
- Service Tax (Banking Transaction Tax) Returns for transactions by an e-money or e-payment agency’s branches must be submitted to the registered tax office of the company’s headquarters.
- e-money and e-payment agencies have until 1 April 2017 to close tax obligation records for payment services which were opened before 1 April 2017.
Please see this link for the full text of the Communiqué (only available in Turkish).