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Tax exemption for those who sell what they produce at home through e-commerce

An important step was taken to encourage e-commerce entrepreneurs. Tax exemption is introduced for those who sell the products they produce at home through e-commerce. The application will start on January 1, 2021. Published on November 17, 2020, the Official Gazette details from here you can reach.

e-commerce tax exemption

I quote the relevant part of the article for e-commerce tax exemption.

ARTICLE 15 - The following subparagraph has been added to the first paragraph of Article 9 of the Income Tax Law No. 193 dated 31/12/1960 and numbered 193, to come after subparagraph (9), and the existing subparagraph (10) has been relationalized accordingly.
"10. Those who sell the goods they manufacture in their homes over the internet and similar electronic media without opening a separate workplace and without using industrial type or mass production machines and tools. In order to benefit from the exemption of tradesmen under this subparagraph, a Tradesmen Tax Exemption Certificate must be obtained, a commercial account must be opened in banks established in Turkey and all revenues must be collected exclusively through this account. Banks are obliged to withhold income tax at the rate of %4 (%2 in cases where one or more employees are employed) as of the date of transfer over the amounts transferred to the commercial accounts opened within the scope of this subparagraph, and to declare and pay within the framework of the principles in Articles 98 and 119. For the application of the reduced rate based on employment, one worker must be employed for at least ten days in the relevant month. No withholding shall be made on this revenue amount within the scope of Article 94. In the event that the revenue obtained within the scope of this subparagraph exceeds 220.000 Turkish Liras, the taxpayer shall be taxed in real procedure as of the beginning of the following calendar year and cannot benefit from this exemption again. If it is determined that the other conditions other than the revenue condition in the subparagraph are violated, the exemption cannot be benefited from and the taxes not accrued on time are collected together with the default interest by imposing a tax loss penalty. The President of the Republic is authorized to reduce the rates and amounts in the subparagraph by up to half and increase them by up to two times."

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