The Law No. 108 (hereinafter), published in the Official Gazette No 52 dated December 6, 2018, has suspended the application of Article 29 of the Budget Law No. 173 of 14/02/2000 and its amendments, relating to the Lump Sum Tax, for a period of three years as of the enactment of this Law. As a matter of fact, the flat rate tax is in contradiction with the tax fairness principle, as it only applies to a certain class of taxpayers and it does not make any distinction between the taxpayers who generate profits and those who incur losses.
Moreover, in compliance with the tax fairness principle, taxpayers who have already paid the flat rate tax are entitled to recover the said tax. The recovery mechanism will be determined by virtue of a decision to be adopted by the Minister of Finance within one (1) month as of the publication date of this Act.