Turkey to introduce new taxation for digital service providers like Google, Facebook

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PHOTO: John Schnobrich (Unsplash)

A new omnibus bill on tax regulation calls for the introduction of a 7.5 percent tax on digital service providers such as Google, Facebook and Twitter, which sell online advertisements; the App Store and Play Store, both selling smartphone applications; and Letgo and Amazon, which sell merchandise on the Internet.

The government is planning to collect this “Digital Services Tax” even if the service provider does not have an office in Turkey, adding an article stipulating that the banks which the digital service companies use will be responsible for the tax.

The tax will be collected from companies that have at least TL 20 million in revenue in Turkey and €750 million worldwide.

The president will have the authority to decrease the taxation rate to 1 percent and also to double it.

If the tax is not paid, the Treasury and Finance Ministry will have the power to cut nationwide access to those services.

The omnibus bill also foresees more taxes for the wealthy, imposing new taxation on valuable residences and services provided in luxury hotels.

The Turkish Industrialists and Businessmen’s Association (TÜSİAD) has criticized the government for the bill, saying they will draft a report on it and announce its release as soon as possible.

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