“During 2024, as the first year of implementing the new law, with the aim of further improving relations with taxpayers, the approach will be advisory to facilitate self-compliance.”
In implementation of the law of “Income Tax”, The Tax Administration has informed taxpayers who provide professional services as defined by VKM No. 753, dated December 20, 2023, that as of January 2024 they will be taxed at 15%.
With the aim of raising awareness among taxpayers (not penalizing them), The Tax Administration has sent a personalized letter to each taxpayer on the list of professional services approved by government decree, urging them to take steps to correct their economic code so they can be taxed fairly.
As mentioned above, it is very important for taxpayers to self-verify the economic activity code in their electronic e-Filing account, according to the list of professional services, and to change it in accordance with the activity they carry out for two purposes:
- To be taxed fairly as professional services, in accordance with the government's decision.
- Do not be taxed by mistake if the economic code does not match the business activity.
The correction of the economic code is easily done online through the services. “Application for change of individual” or “Application for changes to the registration data for limited liability companies (LLCs).
Through this letter, the Tax Administration also encourages taxpayers to accurately reflect the data on the Annual Profit Tax or Simplified Profit Tax Return for the year 2023, regarding the declared data for income, expenses, and taxable profit, as this data will be subject to assessment by the Tax Administration for the calculation of the provisional income tax during 2024.
As the first year of implementing the law, the Tax Administration clarifies that during 2024, as the first year of implementing the new law, with the aim of further improving its relationship with taxpayers, its approach will focus on advisory services aimed at facilitating their compliance with legal obligations.
Personalized letter:
Source: General Directorate of Taxes.