Numara : 5
Tarih : 2.4.2020


NO: 2020/5

Subject: Latest Economic and Tax Measures in Turkey Related to COVİD-19 Pandemic.

As the COVİD-19 Pandemic continues to affect cash-flow of the companies and the economies of the countries significantly, governments all around the World started taking various precautions and providing support to their citizens or business in order to prevent significant deterioration of the economy.

This circular will provide a short summary regarding the economic and tax precautions the Government has taken in Turkey as of 02.04.2020.

1) Suspension of Monthly Tax Returns

Turkish Government has declared force majeure for the following sectors: retail, including shopping centers; healthcare services; furniture manufacturing; iron, steel and metal industry; mining and quarrying; building construction services; industrial kitchen manufacturing, automotive manufacturing and selling; manufacturing of parts and accessories for the automotive industry; car rental; logistics and transportation including warehousing activities; artistic activities such as cinemas and theatres; publishing and printing materials such as books, newspapers and the like; accommodation, including tour operatorship and travel agencies; food and beverages services, including restaurants and coffee houses; manufacturing and trading textiles and apparel; and events and organizations, including public relations.

For the companies within the scope of force majeure (above mentioned sectors), the deadline for monthly Value Added Tax, Value Added Tax-2, Withholding Tax (Including social security declarations) for March, April, May have been suspended to 27.07.2020. Also the payment of these months’ returns have been suspended for 6 months as below.



Submission Deadline

Payment Deadline










Also the deadline for submission of BA-BS Forms, Creation and upload of E-ledgers for March, April and May is postponed to 27.07.2020.

Force Majeure Query screen has been added to Revenue Administration’s online tax office. Taxpayers may check whether or not their activity falls within the scope of the above mentioned sectors. If the taxpayers activity falls into above mentioned sectors, but the online query results negative, taxpayer may apply to its tax office with a petition including proving documentation from interactive tax office online.

Also the submission and payment deadline for February VAT returns and BA-BS Forms was postponed to 24.04.2020 from 26.03.2020.

2) Suspension of Accommodation Tax

Accommodation Tax which would be effective as of 01.04.2020 is postponed to 01.01.2021

3) Suspension of Recycling Participation Share (GEKAP)

Deadline for the first declaration for the Recycling Participation Share (GEKAP) was 30.03.2020. According to new amendment, GEKAP declaration period for 2020 is determined as 6 months. The deadline for submission and payment of first six months of 2020 is 04.08.2020. GEKAP return will be declared on quarterly basis for the following years.

4) Cancellation of Partial VAT Withholding for Force Majeure Sectors

According to VAT General Application Communique VAT withholding is applied for purchases made from certain sectors (personnel lease, security, transportation etc.). According to the latest amendment VAT withholding will not be applied by companies operating in above mentioned force majeure sectors, income tax taxpayers and sectors which have closed down their businesses due to resolution of Ministry of Internal Affairs between 01.04.2020-30.06.2020. Partial VAT Withholding will continue to be applied to companies which does not operate in the force majeure sectors.

According to explanations above, any companies providing services which fall in scope of VAT withholding to above mentioned sectors shall issue their invoices with VAT without VAT withholding.

5) Short Term Working Allowance

In the past, short term working allowance was a system used for companies in economic difficulties which would allow the company to temporarily shut down its business and a portion of the salaries of the workers would be paid from unemployment insurance. The government has facilitated the conditions to apply for this allowance and mentioned that companies suffering economic hardships due to precautions taken for COVİD-19 pandemic may also benefit from this allowance.

Please find below detailed information regarding Short Term Working Allowance;

In the event that the weekly working hours in the workplace are temporarily reduced by at least one third for general economic, sectoral, regional crisis or challenging reasons, or if the activity is stopped completely or partially for at least four weeks without seeking a continuity condition, the workplace should not exceed three months (6 months by the decision of the President). It is an application that provides income support to the insured for the period they cannot work.

- Within the scope of Short Work;

  • Short-time working allowance to workers,
  • Payment of General Health Insurance premiums, services are provided.

  • Even the companies who has unpaid tax and premiums can apply. In order to be able to apply Short Work at the Workplace; The employer; it is necessary to apply to İŞKUR that the working time in the workplace has decreased or stopped due to general economic, sectoral, regional crisis or compelling reasons, and it has to be determined that the workplace has been affected by these situations as a result of the compliance determination made by the Labor Inspectors. The applications regarding COVİD-19 will be made online.


- In order for the worker to benefit from the Short Work Allowance;

  • The employer’s short work request is found to be appropriate as a result of the examination by the labor inspectors,
  • The worker was entitled to unemployment benefit in terms of working hours and unemployment insurance premium payment days at the start of the short work (Those who have paid unemployment insurance premium for at least (450 days)  in the last three years from those who have been subjected to service contract for the last (60 days)

  • The information of the worker on the list of those who will participate in the short study as a result of the examination by the labor inspectors, following conditions are required.

  • Employers can apply for short employment by filling out the Short Work Request Form and information about the workers to be short worked online due to general economic, sectoral, regional crisis or compelling reasons. The companies whose activities are shut down by the Government should submit those governmental decisions to have fast result.

  • The companies stopping or diminishing the activities should submit those management decisions as well.

  • After completing the determination of conformity as a result of the examination by the labor inspectors, the employer’s requests for changing the list of workers to be short-worked and / or increasing the short working time applied at the workplace are evaluated as new applications.

  • For COVİD-19 applications all the related documents should be submitted online and the labor inspectors are supposed to review them all online. There will be no site visit or inspection.

The companies benefitting from Short Term Working Allowance shall not lay off any workers during the period of Short Term Working


Short Work Allowance Period, Amount and Payment


  • Daily short-time working allowance: It is 60% of the average daily gross earnings calculated by taking into consideration the insured’s earnings for the last twelve months The amount of short-time working allowance calculated in this way cannot exceed 150% of the gross amount of the monthly minimum wage.
  • The short-time work allowance is paid to the worker himself and fifth day of every month for periods of Payments are made through PTT Bank. The Minister of Family, Labor and Social Services is empowered to bring the payment date forward.

Termination of Short Term Work

  • In the event that the employer decides to start his normal activity while the practice of short work continues, it is obligatory to notify the institution and the workers in writing six working days ago.
  • As of the date specified in the notification, short work ends. Unwarranted payments regarding late notifications are collected from the employer along with their legal interest

- Withdrawal of Short Work Allowance

Short-time working allowance as of the date of the health report, which is the subject of the temporary incapacity benefit, in case those who receive short-time work allowance, start to get an old-age pension, get arrested for any reason, or leave the job due to any work due to any law or if the temporary incapacity benefit begins cut.

- Employer’s Obligation to Keep Records

The employer, who does short work, must keep records of the working time of the workers and submit them if requested.

In addition, Short-term working allowance amount; calculated considering the earnings of the insured in the last 12 months determined as 60% of the average daily gross earnings. Short-time working allowance calculated in this way the amount cannot exceed 150% of the gross amount of the monthly minimum wage.In this context, payments will be made for the days when the workers are not working, If it is stopped, short-time working allowance can be paid between TL 1.752.40 and TL 4.380.99.


6) Lease of Properties

Landlords cannot evict or terminate lase contracts of taxpayers for unpaid rents for the period from 1.3.2020 to 30.6.2020.  

7) Gas and Electricity Invoices

Payment of electricity and gas invoice can be postponed for 1 year and interest arising from the postponement will be compensated by the Ministry of Energy. (Not entered into force yet

8) Deadlines in the Administrative Trial Procedure Law


Deadlines ending before 13.03.2020 according to the Administrative Trial Procedure LAW have been extended till 30.04.2020.


9) Other Actions Taken in Order to Support the Businesses


a) The limit for the Loan Guarantee Fund will be raised from 25 billion to 50 billion TRY.

b) Minimum wage incentive for social security premiums will be applicable in 2020.

c) The scope of tax types payable by credit card has been expanded. The some tax types listed below for the debts of up to 50.000 TRY can be paid with the credit cards of the Contracted Banks(attached) through the Interactive Tax Office.

  •  Annual Tax Income
  • Withholding Tax

  • Corporate Tax

  • Value Added Tax

  • Revenue Based Value Added Tax

  • Advance Tax Return

  • Reserve Charge VAT


Yours sincerely,

Deloitte Turkey

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