50% Tax Exemption Introduced for E-Exporters

Tax exemption for individuals and companies selling their products abroad through e-export came to the agenda in recent months, after being published in the Official Gazette with presidential approval and approved by the Grand National Assembly of Turkey (TBMM) General Assembly.

With Law No. 7256, a reduction was made on the taxes applied to those engaged in e-commerce, along with certain limitations, as of January 1, 2021. For those who have not heard, let us share the details of this pleasing news full of advantages here.

According to this reduction, a 50% income exemption is applied to individuals and companies selling their products abroad through e-export. In this article, we will talk about the points to be considered.

What are the points to consider in the 50% income exemption practice?

First of all, the sales made must be within the scope of micro-export. E-exports carried out through the electronic commerce customs declaration (ETGB) issued by the Postal Administration or fast courier services in terms of weight and amount are within the scope of the 50% income exemption. 

Example of the 50% income exemption application

Sales price of a product is 350,000 TL

Product cost is 150,000 TL

Based on these amounts, the profit is 200,000 TL.

According to the mentioned 50% income exemption, 100,000 TL will not be subject to tax.

Let us state right away; exports made in fields such as software, design, and services are not within the scope of this exemption.

With these new developments, marketing products and services in the digital arena has become easier thanks to state supports. Creating a business line and trading in the field of e-export is becoming more convenient day by day.

Marketing handmade products by housewives and realizing the dreams of young entrepreneurs are made as close and accessible as a single click. With government support and various tax exemptions, you can take a big step for yourself and play a major role in increasing the gross national product.

What Should E-Commerce Sellers Do to Benefit from Tax Exemption?

The steps that individuals and companies selling on e-commerce sites and marketplaces must follow and pay attention to in order to benefit from the income tax exemption are as follows:

• They must obtain a tax-exempt tradesperson certificate.

• They must open a commercial bank account and make all collections through this account.

• Their total revenue must not exceed 220 thousand TL.

• If they do not have employees, a 4% income tax deduction will be applied; if they have employees, a 2% income tax deduction will be reflected.