Tax incentives for export activity in the Republic of Turkey

Abstract

The subject of this research is the norms of tax legislation of the Republic of Turkey aimed at incentivizing export activity, case law on their implementation, as well as doctrinal sources that affect the development of legal regulation of tax incentives in the country. The methodological framework is comprised in the formal legal method, which allow assessing the actual effect of the norms of the Turkish tax legislation. The method of content analysis was used for the analysis of the corresponding norms to determine the characteristic trends in the development of legal regulation of taxes, as well as for outlining various export support measures in the Republic of Turkey. Within the tax system of the Republic of Turkey, the author establishes the presence of the effective mechanisms for stimulating export activity. Such mechanisms are associated with the possibility of purchasing necessary products by the exporter without paying VAT, as well as a simplified procedure for its refund without conducting tax audit in rendering preferential guarantees or a positive decision of a certified auditor, which also reflects partial delegation of authority in the sphere tax control to special entities outside the structure of the government bodies. Turkish legislation also features the system of quick VAT refund within 5 days to a certified individual. Acquisition of such certificate suggest observing the criteria of good faith, which has a positive impact upon the so-called tax compliance. Tax incentives for export activity in the context of direct taxes in the Republic of Turkey consists in the practical application of the territorial concept of taxation to the income of Turkish companies carrying out certain types of activity abroad, which positively affects the export of labor, services and related commodities. Therefore, the obtained results can be valuable in the development of Russian tax legislation in the area of tax incentives for export activity.