By Nevzat Devranoglu and Orhan Coskun
ANKARA, Oct 15 (Reuters) - Turkey is working on a regulation to further lower corporate tax from the previously set level of 20% for next year, four sources with the knowledge of the matter told Reuters.
Turkey introduced a temporary hike to corporate tax and has been collecting 22% from companies since 2018, with the amount due to be reduced to 20% as of Jan. 1, 2021.
"Although there is no final decision made yet, there is work going on to reduce corporate tax further, lower than 20%," one of the sources, an official, said.
"Work on implementing a lower rate to SMEs and small businesses according to their revenue is at an advanced stage."
The corporate levy was the third biggest source of tax revenue for the government in the first nine months of this year, with 78.6 billion lira ($9.90 billion) collected, according to finance ministry data.
A senior official confirmed the efforts to cut corporate tax further and said the final decision could come after Jan. 1 as economy management wants to see the coronavirus's impact on the economy.
"There might be a lower rate of corporate tax for companies with lower income. The lower tax could be implemented with some conditions...The main idea is that this regulation could be beneficial in this economy setting."
According to a report by broadcaster NTV, corporate tax adjustments could include a reduction to 15% for small companies with less than 10 million lira annual revenue, while for others it would be trimmed to 18%.
($1 = 7.9422 liras)
(Writing by Ezgi Erkoyun Editing by Mark Heinrich)
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