What is the 2024 Revaluation Rate?

In Turkey, taxes, fees and penalties collected by the state from citizens or companies and many related items are rearranged every year. The amount of increase in various public fees, especially taxes and penalties, revaluation rate It is determined by . So, what is the revaluation rate, how is the revaluation rate calculated and in which items does it cause an increase?

What is the Revaluation Rate?

The revaluation rate is an important coefficient that determines the increase rate in receivables collected by the state. This coefficient is explained in detail in Article 289 of the Tax Procedure Law (VUK). According to VUK, the data taken as a basis when calculating the revaluation rate is based on the domestic producer price index. The domestic price index, also known as PPI, which is regularly announced by the Turkish Statistical Institute (TUIK), is used as the main indicator in calculating the revaluation rate.

According to Article 289 of the VUK, the 1-year average PPI increase rate at the end of October each year is determined as the revaluation rate for the next year. Inflation data in October is announced by TURKSTAT in the first week of November, and the revaluation rate valid for the following year is announced in the Official Gazette by the Ministry of Treasury and Finance.

Revaluation Rate in 2024

When the revaluation rates of the last five years are examined, it is seen that the rate determined for 2024 is 58.46%. These rates are also effective in updating taxes, fees and penalties by reflecting changes in economic conditions and inflation.

Revaluation rates for the last 5 years are as follows:

• 2020: 22.58%
• 2021: 9.11%
• 2022: 36.2%
• 2023: 122.9%
• 2024: 58.46%

Revaluation Rate What Does Presidential Authority Mean?

A special authority has been defined for the President in the Tax Procedure Law regarding the revaluation rate determined by the producer prices data announced by TURKSTAT. The President has the authority to increase or decrease by 50% the revaluation rate announced in the Official Gazette by 50% until the end of the relevant year. If this authority is used, the revaluation rate will be announced in the Official Gazette once again.

How to Calculate Based on Revaluation Rate?

The revaluation rate determines how much the amount of covered public payments will be increased for the following year. For example, any tax payment, fee or penalty amounting to 100 TL in a year when the revaluation rate for the next year is announced as 35% will be 135 TL (100 * 1.35) in the next year. The calculation formula is as follows:

In our example of tax fee or penalty amount x (1 + revaluation rate), 100 + (1 + 0.35) can be calculated as 135 TL.

Which Payments Does the Revaluation Rate Cover?

Taxes, fee payments and penalty amounts increased by the revaluation rate are defined in the Tax Procedure Law. Taxes within the scope of the revaluation rate should be fixed taxes, that is, taxes collected in the same amounts for everyone according to the transaction, rather than based on the rate. For example, stamp duty or passport identification fees, document request fees or service fees imposed by various public institutions are within this scope.

The revaluation rate specified in the Tax Procedure Law is used in various areas. In this context, the main taxes, fees or penalties are as follows:

• Highway and bridge tolls
• Motor vehicle tax
• property tax
• Driver’s license/ID fees
• Traffic penalties such as speed limit, drunk driving, running a red light, wrong overtaking
• Exhaust emissions and vehicle inspection fees
• Tax and duty regulations
• Passport fees