TOURISM SHARE DECLARATION

What is the Tourism Share Declaration?

Law No. 7183 dated July 11, 2019 established the Turkey Tourism Promotion and Development Agency. The Tourism Declaration is a type of declaration that emerged with the establishment of this agency and whose criteria were determined by the General Communiqué on Tourism Share Declaration (Sequence No: 1) issued by Law No. 7183 and published in the Official Gazette dated 02/11/2019 and numbered 30936 in order to finance the management, supervision, income and expenses of the said agency, or in other words, its activities.

To explain further, the Tourism Declaration refers to the declaration regarding the declaration of the tourism share to be paid over the sum of the net sales and rental income obtained as a result of the activities of real or legal persons who are investors or operators of commercial enterprises in accordance with Article 6 of Law No. 7183.

Tourism Share refers to the share taken over the sum of net sales and rental income obtained by real or legal persons who are investors or operators of commercial enterprises as a result of their activities in these enterprises in accordance with Article 6 of Law No. 7183.

Who Prepares the Tourism Share Declaration and How?

The regulation of the tourism declaration is based on the Law No. 7183. The businesses specified in this law are obliged to submit this declaration. So, who are these businesses?

Tourism Declaration;

• Compound facilities and accommodation facilities seven and a half per thousand,
• Ministry-certified food and beverage and entertainment facilities seven and a half per thousand,
• Marine tourism facilities and marine tourism vehicles certified by the Ministry seven and a half per thousand,
• Travel agencies (excluding individual air ticket sales) seven and a half per ten thousand,
• Airline companies (commercial passenger transportation activities) seven and a half per ten thousand,
• From airport and terminal enterprises, except those operated by the General Directorate of State Airports Authority two per thousand,

The rate is based on the sum of the net sales and rental income generated by the real or legal persons who are investors or operators of these commercial enterprises as a result of their activities in these enterprises. These rates are applied with a fifty percent discount for facilities operating in tourism types deemed appropriate to be encouraged by the Ministry, such as winter, thermal, health, rural and qualified sports tourism.

Explanatory information on the above-mentioned companies is specified in the communiqué. According to the aforementioned communiqué, these companies are:

Compound Facilities: Tourism cities, tourism complexes and holiday centers operating with a partial tourism management or tourism management certificate issued by the Ministry,

Sea Tourism Facilities: Tourism facilities such as cruise ship ports, marinas, boatyards, docks and piers that provide services such as safe mooring, landing, maintenance, repair services, eating, drinking and resting services to maritime tourism vehicles,

Airport Operations: Organizations that are responsible for the operation of airports, except those operated by the General Directorate of State Airports Authority and licensed by the General Directorate of Civil Aviation of the Ministry of Transport and Infrastructure,

Airline Business: Airline businesses (including businesses such as balloons, air taxis) engaged in transportation activities with an operating license obtained from the General Directorate of Civil Aviation of the Ministry of Transport and Infrastructure,

Accommodation Facilities: Hotels, holiday villages, boutique hotels, special facilities with accommodation, motels, hostels, hostels, apart-hotels and rural tourism facilities with accommodation (chalets, village houses, farm houses, plateau houses and oberj) and campings operating with a partial tourism enterprise or tourism enterprise certificate issued by the Ministry or with a business opening and working license issued by the relevant institution or organization,

Travel Agencies: Businesses that obtain a travel agency certificate from the Ministry within the scope of the Travel Agencies and Travel Agencies Association Law dated 14/9/1972 and numbered 1618,

Terminal Operations: Terminal businesses constructed by the General Directorate of State Airports Authority and subsequently operated by leasing to real or legal persons and licensed by the General Directorate of Civil Aviation of the Ministry of Transport and Infrastructure.

When and by Whom is the Tourism Share Declaration Submitted?

Independent public accountants, certified public accountants and sworn public accountants who have been authorized pursuant to the Law on Public Accountancy and Sworn-in Certified Public Accountants dated 1/6/1989 and numbered 3568 are authorized to submit this declaration.

Declaration deadlines are as follows;

• For corporate taxpayers monthly,
• Three for the others monthly,

as the most important factor in the development of the country's economy.

The quarterly declaration periods are set out below:

• First semesterJanuary-February-March,
• Second semesterApril, May, June,
• Third periodJuly-August-September,
• Fourth termOctober-November-December.

Tourism share of the month following the taxation period to which the taxpayer is subject according to the Value Added Tax Law dated 25/10/1984 and numbered 3065 by the end of the twenty-fourth day tax office to which the relevant persons are affiliated in terms of income or corporate tax, and by those who are not liable for income or corporate tax, to the tax office to be determined by the Revenue Administration.

When is the Tourism Share Declaration due?

Declared month until the evening of the twenty-sixth day is paid. The provisions of the Tax Procedure Law dated 4/1/1961 and numbered 213 and the Law on the Procedure of Collection of Public Receivables dated 21/7/1953 and numbered 6183 shall apply to the declaration, assessment, accrual and collection of the tourism share by the tax office, and the remaining five percent of the collected tourism share, after being allocated as general budget revenue, shall be taken into escrow account and transferred to the Agency's bank account on the twentieth day of the following month at the latest.

The tourism share paid is recognized as an expense by corporate tax and income taxpayers in determining the taxable income.

What are the Authorizations of the Ministry of Treasury and Finance in the Declaration of Tourism Share?

Ministry of Treasury and Finance;

• To determine the deadlines for the submission of declarations regarding the tourism share, separately or together in monthly or quarterly periods in terms of the tourism types, tax or tax liability types of those covered,
• To determine the form, content and annexes of the declarations and to impose an obligation to submit them electronically,
• To authorize, make or require authorized real or legal persons to act as intermediaries, to determine the procedures and principles regarding the approval or signature of the professional members within the scope of the Law on Certified Public Accountants and Sworn-in Certified Public Accountants dated 1/6/1989 and numbered 3568,
• To redetermine the declaration and payment periods of the tourism share so as not to exceed one month from the legal period,

is authorized.

What are the Penalties for Tourism Declaration?

There are 3 types of tax penalties.

• Irregularity penalty
• Tax penalty
• Penalty for smuggling.

Neither the communiqué nor the law provides any penalty for tourism declaration. However, considering that the tourism declaration arises as a result of a taxable event, the above-mentioned types of penalties applied to other taxes are imposed. Since it is no different from other declarations, there is no penalty in the legislation for this type of declaration only.

Sample Tax Calculation for Tourism Share Declaration

(A) A.Ş., the operator of the hotel operating in Bakırköy district of Istanbul province with a 5-star hotel tourism management certificate from the Ministry of Culture and Tourism and (A) A.Ş., the operator of the hotel operating as a thermal accommodation facility in Manisa province without a tourism management certificate, are liable for corporate tax, value added tax and income (withholding) tax at Turgutlu Tax Office in Turgutlu district of Manisa province.

(A) A.Ş. earned a total of TRY 1.700.000 in the period of July 2020, including TRY 1.000.000 net sales and TRY 100.000 rental income from its hotel management activity in Istanbul and TRY 500.000 net sales and TRY 100.000 rental income from its thermal hotel management activity in Manisa.

In this case, (A) A.Ş. In the Tourism Share Declaration to be submitted for the period of July/2020, 1.100.000 TL at the rate of seven and a half per thousand over the total amount of 1.100.000 TL for the hotel in Istanbul province, 1.100.000 x 0,0075 = 8.250 TL tax to Bakırköy Tax Office, for the thermal hotel in Manisa province 600.000 TL calculated by applying a fifty percent discount to the amount to be calculated at the rate of seven and a half per thousand over the total amount of 600.000 TL, 600.000 x 0,0075 = 4.500 / 2 = 2.250 TL tourism share will be declared electronically to Turgutlu Tax Office until 23.59 on 31/08/2020 and 8.250 + 2.250 = 10.500 TL tourism share will be paid at the same time.