TURKISH GOVERNMENT REDUCES FREIGHT TAXES

TURKISH GOVERNMENT REDUCES FREIGHT TAXES

    The Turkish government has reduced income taxes on outbound freight earnings for carriers loading in the country’s ports.
    The tax was reduced from about 7.2 percent to 6.6 percent. About 15 percent of the transport costs is considered to be taxable income in Turkey.
    "This reduction brings the tax back down to the level collected up to the end of last year before they increased the tax by about 8 percent," said Thomas Timlen of the Baltic and International Maritime Council, which represents numerous ocean carriers and ship agents operating in Turkish ports.
    Carriers based in 38 countries benefit from double taxation avoidance agreements established with Turkey. This exempts them from paying the Turkish government income taxes on freight.