Regarding the Withholding Tax Rate to be Applied in Electronic Commerce

As per the Presidential Decree No. 9284 published in the Official Gazette dated December 22, 2024 and numbered 32760, the withholding tax rate in electronic commerce has been implemented as 1%.

In the scope of the application, 1% withholding will be made on payments to be made to real and legal persons (service providers) engaged in electronic commerce activities and intermediary service providers that enable the execution of contracts or placing orders for the supply of goods or services of electronic commerce service providers in the electronic commerce marketplace due to their activities within the scope of the Law No. 6563 on the Regulation of Electronic Commerce.

In this context, the obligation to withhold is applied to intermediary service providers (real and legal persons who provide the electronic commerce environment for the economic and commercial activities of others) and electronic commerce intermediary service providers.

Those who are liable for withholding tax will make deductions from the payments they intermediate and pay them to the tax office.

Income and corporate taxpayers will offset these withholding taxes in their quarterly provisional tax returns and annual tax returns.

In the annual declaration, both the taxes deducted in the last quarter of the year and the amounts that could not be deducted in the provisional tax declarations will be deducted and the overpaid amounts will be refunded.

This regulation will enter into force as of January 1, 2025.