A parliamentary commission has reportedly approved a bill filed by Turkey's ruling Justice and Development Party (AKP) on hiking the country's 2021 corporate tax rate to 25%.
The rate, which stood at 20% throughout 2018-2020, would subsequently decline to 23% in 2022 if local media reports prove correct.
The AKP and its junior partner, the ultra-nationalist Nationalist Movement Party (MHP), maintain a majority coalition in parliament. The bill looks set to receive approval if corporates cannot succeed with last minute lobbying attempts aimed at changing Turkish President Recep Tayyip Erdogan’s mind on the matter.
The new tax rate would be effective from July 1, but it its impact will apply to the whole of 2021 since the tax is calculated based on cumulative revenues, Dunya noted.
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