296 NEWSLETTER 2021 Recent Rulings of the Turkish Tax Administration Regarding the Stamp Tax* Canan Doksat Introduction The stamp tax, introduced based on the principle of taxation of papers that constitute the ground of legal transactions, has existed in our country’s tax system since the 1800s. In the preamble of the current Stamp Tax Law (“STL”) No.488, accepted on 01/07/1964, it is stated that the previous stamp tax law could not satisfy the social and economic functions of a tax and that it presents difficulties in terms of tax technique and practice. Therefore, the current STL was interpreted as an attempt at reform. It has been stated that the aim of this law was to introduce clarity and accuracy into stamp tax practice. Looking at the period from the date that this law entered into force until the present, it is still debatable whether the aims stated in the preamble of the STL were fulfilled or not. Unfortunately, in stamp law practice, there are a variety of subjects which remains unclear, or which cannot be clarified for taxpayers. In certain circumstances, the amount of stamp tax may even surpass the value of the principal transaction subject to an agreement. Consequently, stamp tax law constitutes perhaps the most compelling illustration of why it is so important to consider tax law together with other branches of law during the negotiation stage of an agreement. As a matter of fact, any term included into a contract by disregarding the stamp tax regulations may result in stamp tax in an amount exceeding even the amount of agreement’s main deed/subject. If parties do not do so, the main negative outcomes of such a situation include (i) eliminating the expected benefit of the contract, and (ii) undertaking a much heavier financial burden for both the attorneys * Article of September, 2021
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