The Regulation Amending the Procedures and Principles regarding to Tax Audit (“Amendment Regulation”) was published in Official Gazette number 29524 on 6 November 2015, entering into effect on the same date. The Amendment Regulation amends equity thresholds, as well as conditions for forming groups of first rank traders. It also introduces principles regarding tax audits conducted for international exchange of information.

Significant changes introduced by the Amendment Regulation include:

  • The definition for equity size is changed to be the total equity calculated under the balance sheet, as of the end of the accounting period, according to the Tax Procedure Law number 213.
  • Rulings presented by tax payers about controversial issues within the context of tax regulations during the audit will be incorporated into the audit report and the audit officer will include it in the audit analysis.
  • Auditing assignment is subject to approval by the designating authority.
  • Tax payers will be informed that the provisions in the audit report will be considered proof in possible procedures, within the terms of the Tax Law. Tax payers will also have possible procedures explained to them.
  • Tax audits intended for international information exchange are prioritized and related time periods are introduced.
  • The conditions to qualify as a first rank trader are changed so that the first group of first rank traders include either:
    • Companies with average total assets and net sales (indicated in balance sheet); greater than TL 50,000,000, or
    • Companies with more than TL 15,000,000 equity.

Please see this link for full text of the Amendment Regulation (only available in Turkish).