NEWSLETTER-2020-metin

326 NEWSLETTER 2020 • Income taxpayers who conduct commercial, agricultural and self-employment activities; and • Corporate taxpayers, excluding those operating in the finan- ce and banking sectors, insurance, and retirement companies, and retirement investment funds. The discount will be 5% of the corporate or income tax liabil- ity declared on the above-mentioned taxpayers’ annual tax returns. However, the amount of discount cannot exceed TRY 1 million 400 thousand 1 (for 2020). If the reduction is higher than the taxes payable, the remaining amount may be set-off from other taxes arising within one year after the submission of the concerned annual tax return. Amounts that can- not be deducted during this period are disallowed and not refundable. 2 The Conditions of the Tax Reduction After the promulgation of the repeated Article 121 of the ITL in which the tax reduction for tax-compliant taxpayers was enacted, be- cause of the increasing number of the cases and rulings, many amend- ments have been made to the benefiting conditions. These conditions are stated below: a) All tax returns for the year during which the tax discount will be applied, and to the previous two years, must be submitted within the statutory period. However, tax returns declared for correction or voluntary disclosure purposes are not regarded as a violation of the condition. In addition, clarification was made through Law No.7194 by explaining the statement “tax returns” to be annual income tax and corporate tax returns, provisional tax returns and 1 Revenue Administration, https://www.gib.gov.tr/310-seri-nolu-gelir-vergisi-ge- nel-tebligi (Access date: 20.02.2020). 2 Apak, Doç. Dr. Sedat : “Vergiye Uyumlu Mükelleflere Vergi İndirimi Uygulaması, Değerlendirilmesi İle Ortaya Çıkan Sorunlar ve Çözüm Önerileri”, Vergi Sorunları Dergisi, No. 375, December 2019.