Tax-Free Sales to Non-Residents Qualify as Exports: 5-Point Corporate Tax Reduction Possible

• Sales to non-resident passengers under VAT Law 11/1-b are considered exports.
• Profits from these sales qualify for a 5-point reduction in corporate tax rate starting from the 2023 fiscal period.
• The tax reduction applies only to export-derived profits, not total profits; if there are both domestic and export sales, profits must be separated per regulations.
• The reduced rate cannot exceed the export profit or net corporate profit.
• The tax authority’s ruling is binding only for the applicant but serves as a strong precedent for similar cases.

Source: alomaliye.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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