With the Presidential Decree No. 9284 dated December 21, 2024, an important tax regulation has entered into force in the e-commerce sector as of January 1, 2025. This regulation requires intermediary service providers and electronic commerce intermediary service providers to withhold income tax at a rate of 1% on payments they make to service providers.

Those Subject to Withholding Obligation:

-Intermediary Service Providers: Real and legal persons who provide an electronic commerce environment for the realization of economic and commercial activities of others.

-Electronic Commerce Intermediary Service Providers: Intermediary service providers who enable contracts to be made or orders to be received for the provision of goods or services of service providers in electronic commerce marketplaces.

Persons to Whom Withholding Will Be Applied:

-Service Providers: Real or legal persons engaged in electronic commerce activities.

-Electronic Commerce Service Providers: Service providers who sell goods or services on their own platforms or electronic commerce marketplaces.

Within the scope of this regulation, intermediary service providers and electronic commerce intermediary service providers will withhold 1% on the payments made to service providers for goods and services.

Offset and Refund of Withheld Taxes:

Withheld taxes can be offset from the income/corporate tax calculated by the electronic commerce service provider and service provider taxpayer on provisional tax and annual income/corporate tax returns, and the amounts that cannot be offset in annual returns, if any, can be subject to refund within the scope of the regulations in the Income Tax General Communiqué No. 252.

This new regulation is an important change affecting the tax liabilities of all parties operating in the e-commerce sector and entered into force as of January 1, 2025.

BRIEFLY:

Hepsiburada, Trendyol, n11 and similar platforms that act as e-commerce intermediaries will withhold 1% income tax on the invoice amount excluding VAT and declare and pay it with their own summary tax returns. The withholding (deduction) made by the intermediary can be offset from the income/corporate tax calculated on the provisional tax and annual income/corporate tax returns, and the amounts that cannot be offset in the annual returns, if any, can be subject to refund within the scope of the regulations in the Income Tax General Communiqué No. 252.


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