postponement of declaration and payment periods of income tax, vat and withholding tax within the scope of covid - 19 measures

08 June 2020

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Postponement of Declaration and Payment Periods of Income Tax, VAT and Withholding Tax within the Scope of COVID - 19 Measures

Declaration and payment periods of annual income tax, VAT and withholding tax statements have been postponed within the scope of COVID – 19 measures. We have briefly covered the liabilities which are postponed, the taxpayers within the scope of the measures and the new deadlines for declarations and payments.
 

Annual Income Tax


Pursuant to the Circular on Tax Procedure Law numbered 125 dated 17 March 2020 (“Circular”), the deadline for the 2019 annual income tax declarations, which is normally 31 March 2020, has been postponed to 30 April 2020. The first installment of 2019 annual income tax payment has also been postponed to 30 April 2020. This postponement will be applicable to all taxpayers, regardless of whether they are accepted to be in the scope of force majeure.
 

Postponement of Value Added Tax (VAT) and Withholding Tax Obligations


Pursuant to the General Notification on Tax Procedure Law numbered 518 dated 24 March 2020 (“Notification”), declaration and payment dates of VAT and withholding tax statements have been postponed. This postponement is only applicable for taxpayers which are accepted to be in the scope of force majeure.
 

Taxpayers Accepted as Subjected to Force Majeure


Below mentioned taxpayers are accepted to be in the scope of force majeure:

  • Taxpayer individuals who generate income through commerce and agriculture and self-employed individuals (such as public relations, farmers, tailors, greengrocers, lawyers, financial advisors, architects, engineers, pharmacists, doctors, dentists, etc.);
  • Taxpayers who are operating their activities in sectors where workplaces have been temporarily suspended within the scope of the measures taken by the Ministry of Interior;
  • Taxpayers who are subject to the lockdown due to being over the age of 65 or having chronic illnesses; and,
  • Taxpayers operating in 16 sectors specified by the Notification and listed below:
Sectors Accepted as Subjected to Force Majeure
  1. Retail - Including Shopping Center
  1. Textile and Apparel Activities
  1. Iron, Steel and Metal Industry
  1. Event And Organization - Including Public Relations
  1. Automotive Industry
  1. Health Services
  1. Artistic Activities Such As Cinemas And Theaters
  1. Furniture Manufactures
  1. Logistics And Transportation Including Storage
  1. Mining and Quarrying
  1. Accommodation - Including Tour Operators And Travel Agencies
  1. Construction
  1. Food and Beverage Services Including Restaurants and Cafes
  1. Industrial Kitchen Manufactures
  1. Car Rental
  1. Publishing Activities of books, newspapers and similar printed products.


Taxpayers can find out whether they are included within the scope of force majeure by the Revenue Administration through the Interactive Tax Office by using the button of "Force Majeure Status Inquiry Within the Scope of General Notification on Tax Procedure Law No. 518" (518 Sıra Nolu VUK Genel Tebliği Kapsamında Mücbir Sebep Durum Sorgusu) under "My Information" (Bilgilerim) tab.

Whether the taxpayer is accepted as subject to force majeure or not will be determined by the Revenue Administration by taking into account the main activity code registered in taxpayers' tax offices on 24 March 2020. If the main activity code of the taxpayer has not been registered as one of the activities included within the scope of force majeure cases, the taxpayer can benefit from the postponements by proving that they are engaged in the fields of activity accepted as subject to force majeure cases.
 

Postponement of Declaration and Payment Periods of VAT and Withholding Tax Statements for Taxpayers under Force Majeure

Declaration and payment periods of VAT and withholding tax statements for taxpayers who are accepted as subject to force majeure are shown in Table 2.

Table 2. Declaration and Payment Periods of VAT And Withholding Tax
Related Month and Type of Declaration Declaration Date Payment Date
Legal Postponed Legal Postponed
February 2020 VAT 26 March 2020 24 April 2020 26 March 2020 24 April 2020
March 2020 Withholding Tax Statements 27 April 2020 27 July2020 27 April 2020 27 October 2020
VAT 27 April 2020 27 July 2020 27 April 2020 27 October 2020
April 2020 Withholding Tax Statements 27 May 2020 27 July 2020 27 May 2020 27 November 2020
VAT 27 May 2020 27 July 2020 27 May 2020 27 November 2020
May 2020 Withholding Tax Statements 26 June 2020 27 July 2020 26 June 2020 28 December 2020
VAT 26 June 2020 27 July 2020 26 June 2020 28 December 2020


Taxpayers who are over the age of 65 and who have chronic illnesses are accepted to be under force majeure during the lockdown. Therefore, the declaration and payment periods for the relevant taxpayers have been postponed to the 15th day after the end of the lockdown imposed on them.

Conclusion

 
  • The Revenue Administration has postponed:
  • declaration and payment periods of 2019 income tax for all taxpayers with the Circular dated 17 March 2020, and
  • declaration and payment periods of VAT and withholding taxes with the General Notification on Tax Procedure Law dated 24 March 2020, for the taxpayers who accepted as subject to force majeure.
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