BITT Regulations Are Introduced Through the Promulgation of Expenditure Taxes General Communiqué Serial No. 92
Through the Expenditure Taxes General Communiqué Serial No. 92, ("Communiqué") published in the Official Gazette dated 11th October 2022 and no. 31980, banking and insurance transactions tax ("BITT") regulations are introduced regarding the taxation of the money received by insurance companies as a result of recourse and salvage transactions.
Pursuant to the Communiqué, insurance companies are required to calculate BITT on the money received in cash or on account as a result of recourse and salvage transactions. BITT base would be the difference between (i) the recourse or salvage value collected by the insurance companies and (ii) the previously accrued recourse or salvage value.
The Communiqué enters into force on the date of its publication (October 11, 2022).
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