Notice Regarding the Option for Tax Bracket Review by the General Directorate of Taxes

The GDT emphasizes that the calculation of preliminary tax installments for the year 2024, particularly for professional services, is based on a percentage of the self-declared profits for the year 2023. As 2024 marks the initial implementation year of the new tax law, these installments are determined according to profit declarations made under the provisions of the previous "Income Tax" law.

It's important to note that the recognition of expenses at a rate of 30% for taxpayers engaged in "Professional Services" is optional and is applicable under the new law only for profit declarations in the year 2024. This declaration must be completed by March 31, 2025. However, this doesn't mean that taxpayers' actual expenses are not considered in the preliminary installment calculation for 2024. The calculation is based on the self-declared profits of 2023, taking into account actual income and expenses.

Due to technical constraints, it's not feasible to calculate the preliminary installments for 2024 based on profits from that same year. Therefore, as per legal requirements, these preliminary installments will be calculated based on the preceding year's profits.

Taxpayers who believe that their preliminary installment for 2024 is excessive or who have concerns about misdeclaration are advised to submit a request for installment review to their respective Regional Tax Directorate. These requests will be given priority consideration to ensure fair taxation in accordance with the law.

Request for Review of Profit Tax Estimates

These days, as part of the process of the new income tax law, profit tax prepayment estimates have been generated. This is a normal process and implementation of the law, but since a considerable number of freelance professions are affected by legal changes, the payment of estimates and tax forecasting management requires additional attention.

The profit tax prepayment estimates, for both individuals and entities, are based on the annual tax declaration for the year 2023. All businesses, if they assess that their profit and consequently the calculated tax for the period of 2024 will be significantly lower, have the right to request a reassessment.