Insurance Banking and insurance transactions tax of the money received in favor of the companies as a result of recourse and salvage transactions (BSMVThe Communiqué on the taxation of ) entered into force.
The Communiqué of the Ministry of Treasury and Finance Revenue Administration was published in the Official Gazette.
According to the first paragraph of Article 28 of the Expenditure Tax Law No. 6802 dated 13/7/1956 in the Communiqué, the money received by insurance companies in cash or on account for all their transactions, regardless of their name, is subject to BSMV. by specifying; “Accordingly, a taxable event occurs when a transaction is made by insurance companies and money is received in favor of this transaction,” the statement said.
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Transaction costs can be taken into account in calculating the money received in favor of BITT. However, the cost elements that do not appear at the time of the transaction or that occur at the time of the transaction, but whose amount cannot be calculated clearly, will not be taken into account in the calculation of the money received in favor.
According to article 1472 of the Turkish Commercial Code dated 13/1/2011 and numbered 6102, when the insurer pays the insurance indemnity, the insured will legally replace the insured, if the insured has a right to file a lawsuit against those responsible for the damage that has occurred, this right will be transferred to the insurer as much as the indemnified amount. If a lawsuit or proceeding has been initiated, the insurer can continue the lawsuit or proceeding from where it left off by proving the payment made to the insured pursuant to the rule of subrogation, without the need for the approval of the court or the other party, and if the insurer has partially compensated the loss, the insured will retain his right of recourse against those responsible for the remaining part. was ruled.
The report continued as follows:
“According to this, in accordance with the principle of succession, insurance companies have the rights of the insured to the extent of the damages they have paid due to the compensation paid and can use their right of recourse against third parties.
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Scrap or damaged goods covered by the insurance can be left to the insured by deducting the salvage value from the current value of the goods by the insurance companies and paying the remaining amount to the insured, or they can also be transferred to the insurance companies as part of the compensation payment by an agreement between the insured and the insurance company. In addition, damaged goods can be sold to third parties through an intermediary firm given a power of attorney by the insured, and the sale price can be paid to the insured as a part of the indemnity price, either directly or through the insurance company.
Circular No. 2015/6 of the abolished Undersecretariat of Treasury on Recourse and Salvage Amounts;
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– 2.2. In the article, in order for the recourse and salvage amount to be accrued, the right of succession must be acquired and the amount paid. company should be determined according to the application,
– 2.4. In the article, provided that insurance companies must certify their indemnity payments with the acquittal or bank receipt received from the insured and that a notification is made to the counterinsurance company or third parties for recourse, recourse amounts up to the collateral limit of the counterinsurance company can be accrued,
– 2.6. In the article, salvage amounts should be accrued in every case where salvage is not left to the insured,
– 2.8. In the article, it is regulated that if the collected recourse and salvage amount is more than the accrued amounts, the difference should be transferred to the relevant income account.
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Taxation and assessment of recourse and salvage amounts in terms of BITT
Insurance companies are required to calculate BITT based on the money received in cash or in favor of the account as a result of recourse and salvage transactions, according to the rates in force, and the BSMV base in these transactions is more than the recourse or salvage fee collected/to be collected by the insurance companies within the scope of the Circular No. 2015/6 of the abolished Undersecretariat of Treasury. In the Communiqué, which is stated as the difference between the recourse or salvage value accrued beforehand, it is stated as follows:
“Accordingly, in the payment of the sale price to the insured as a part of the compensation amount, directly or through the insurance company, as a result of the sale of scrap or damaged goods that the insurance companies have acquired as a result of salvage transactions, or the sale of the said goods to third parties by an intermediary firm with a power of attorney obtained from the insured, BITT should be calculated over the difference between the sales price of scrap or damaged goods and the previously accrued salvage value.
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In the transactions regarding the transfer of scrap or damaged goods to the insured without paying salvage fee by the insurance companies and the sale of them by the insured personally, a transaction made by the insurance companies cannot be mentioned, and the said transaction is not subject to BITT.
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