"Regulation on the Refund of Income Tax withheld from Sportsmen's Wages" was published.

22.07.2023 dated and 32256 numbered "Regulation on the Refund of Income Tax withheld from Sportsmen's Wages" was published in the Official Gazette.

Accordingly, the income tax withheld from the wages paid to sportsmen by sports clubs and sports joint stock companies registered by the Ministry of Youth and Sports and declared to the relevant tax office within the legal period and paid on time will be refunded to the special accounts opened by the employers.

In order for the taxes withheld by sports clubs and sports joint stock companies on wage payments made to sportsmen to be refunded to the sports clubs and sports joint stock companies, these taxes must be declared within the legal period with the withholding and premium service declaration for the relevant month and the accrued income (withholding) tax amounts must be paid on time.

Except for the correction declarations submitted within the legal period regarding the taxes that should be declared by withholding over the sportsman wages, the income tax levied on the declarations submitted after the legal period, including the declarations submitted with regret, will not be refunded.

The withholding amounts withheld by the relevant employer on the wages paid to the sportsmen and paid by declaring with withholding and premium service declaration will be transferred to the special account opened on behalf of the relevant employer by the tax offices within five business days following the payment by making a refund with a correction receipt.

Using the Special Account

Amounts transferred to the employer's special account only;

• Wages and gross payments considered as wages made to sportsmen, their trainers and other sports personnel who perform sportive activities in amateur sports activities and infrastructure sports training facilities,
• Food, accommodation, travel, health, education and training expenditures related to the sporting activities of sportsmen who perform sporting activities in amateur sports activities and infrastructure sports training facilities, as well as preparation camps, competitions, materials and equipment, sports federation visa, license, registration and participation expenditures related to amateur and infrastructure activities,
• Expenditures made for the construction of infrastructure sports training facilities established or to be established by sports clubs and sports joint stock companies for the development of amateur sports activities and the training and training of sportsmen, and for the operation and maintenance of these facilities, including the wages of the personnel working in these facilities,

for amateur sports activities and infrastructure sports training facilities.

Payments made to sportsmen, their trainers and other sports personnel in amateur sports activities and infrastructure sports training facilities cannot exceed three times the amount in the third income bracket of the tariff written in Article 103 of the Income Tax Law for each sportsman, trainer and other sports personnel in the relevant year.

The expenditures made by sports clubs and sports joint stock companies within this scope before the refund is received can be covered from the amounts transferred to the special account later.

The refund amounts transferred to the special account and the expenditures made from this account are not taken into account as income, expense, discount or cost in income and corporate tax applications.

Misuse of the Special Account

Tax refunds that are misused from the special account are assessed as income (withholding) tax for the taxation period in which they are misused, and tax loss penalty and default interest are calculated on behalf of the taxpayer for whom the special account is opened.

This Regulation entered into force on 22.07.2023, effective from 01.04.2023.