WEEKLY INFORMATION TECHNOLOGY AND ECONOMY NEWSPAPER
Taxes are clarified 5% banking and insurance transaction tax (BSMV) will be practices on transactions of money and payment institutions established to mediate electronic commerce. Considering 18% VAT rates, 5% BSMV is perceived as contributing transaction cost decrease. Hence, the issues such as putting on no additional tax and commissions earned by payment and electronic money institutions’ tax are clarified. After the notification entering into force, all related companies will be BSMV tax payers for sure. According to the notification prepared by the Ministry of Finance; Banking Regulation and Supervision Agency (BDDK) authorized services of electronic money and payment institutions will be classified as ‘brokerage’ and subject to BSMV. Thus, the commission and fees paid by the users to the electronic money and payment institutions for services will be taxable. Also, a part of the commission amount to be transferred to organizations located overseas or in the country will not matter in terms of taxation. BSMV taxes deriving from the earned commission and fees may be collected from service users. Considering 18% VAT rates, 5% BSMV is perceived as contributing transaction cost decrease. Meanwhile, E-Law Association Chairman Lawyer Gökhan Uğur Bağcı explained this decision with an example, expecting it would change nothing for the service demand: “If you are using a virtual bank POS as e-commerce companies directly, the amount of commission received by the bank was already subject to BSMV. So, the bank did not prepare an invoice for you with VAT in it for a payment of 100 TL and a commission of 5 TL. The payment institutions, due to lack of clarity in the legislation so far, was preparing an invoice with VAT for the commission
it receives. The Commission invoice having VAT included would be a deduction for the e-commerce company. Currently, with the arrangements made; invoices including VAT will vanish and e-commerce companies will be just as banks in terms of business conditions.” An additional tax is out of question Although different business models and payment services types exist, basically the money is earned by commissions deriving from money transfers and payment brokerage for e-money institutions. The controversial issue was to practice VAT or BSMV on the amount received as commissions and fees for a long time. Payment institutions, both individually and through ÖDED (Payment and Electronic Money Association), was exchanging ideas with Revenue Administration on the topic. At the end of these talks, in early September, “Expense Tax General Communiqué Draft (Serial No. 91)” was issued and this problem was solved and payment and electronic money institutions’ commissions became subject to BSMV. Currently, some payment and electronic money institutions taking views from the Revenue Administration act as BSMV tax payers. E-Law Association Chairman Lawyer Gökhan Uğur Bağcı shared the following details: “I think the draft was interpreted incorrectly in the sector and present a
very negative situation. The press released news such as ‘additional taxes to virtual POS services’. Receiving an additional 5% tax is not even mentioned with this arrangement. On the contrary, the payment institutions were made to pay 5% tax instead of 18%. In practice, I do not think that the cost will be increased for the existing e-commerce companies. So, I do not anticipate increased prices for consumers as a result, as well.” BSMV tax liability One of the institutions already in operation at the beginning of 2016 received an opinion from the Revenue Administration, stating that services given by such companies will be subject to BSMV. In the Expense Tax General Communiqué Draft (Serial No. 91), the situation is explained clearly for the entire payment system companies. In fact, KPMG Turkey Tax Department Partner Hakan Güzeloğlu stated that: “Therefore, the draft communique should be enough for institutions to open a BSMV tax liability account prior to the draft being issued formally.” According to EY Turkey Tax Department Partner
Levent Atakan, it is not actually correct to say that this approach is very new. In the period that these organizations were not obliged to obtain licenses from the BDDK and the transactions being classified as ‘brokerage’, it was known that the transactions should be subject to BSMV. We understand that the payment services offered by payment institutions are considered under BSMV by Tax Administration. However, Atakan added: “it could be a subject of discussion whether these institutions are doing ‘brokerage’ and should be subject to BSMV as there are no buying or selling securities for others, mediating purchases, ensuring payment, providing interest or collecting money transactions are carried out.” Taxes are clarified finally When focused on ‘Brokerage’ term, Hakan Güzeloğlu shared the following information: “We think it is appropriate for electronic money and payment institutions to subject the BSMV as ‘brokers’ since they operate
under BDDK. Revenue Administration also expressed earlier this year to one of the payment institutions that those institutions are subject to BSMV. At the period these institutions were established, them being subject to BSMV were discussed and in order not to keep transaction costs high (BSMV 5% and VAT 18%), they preferred being subject to BSMV and as seen on the draft communique, the preference was taking into account. In practice, being BSMV taxpayers will be related to these companies’ main money and payment activities; the other activities such as securities or factoring will be subject to VAT as other BDDK companies. Finally, when we examine the Expense Tax General Communiqué Draft (Serial No. 91), it could be stated that electronic money and payment institutions, evaluating their main field of activity, are considered as financial institutions and performing brokerage activities mentioned above. In this context, commission income or such revenues of these institutions are subject to BSMV.”
TÜRKSAT established a strategic partnership with Inmarsat
MES manufacturers and service providers came together Manufacturers and service providers in the Business Transformation Platform, ERP, e-Transformation, CRM, PLM and MES (Manufacturing Management System) Committees came together in the first assembly and started to work on developing the market. The first meeting of MES Manufacturers’ Committee was hosted by Projesis in İstanbul Marriott Hotel Asia and ACD, Akdatasoft, Armolis, Doruk, Ege Bimtes, FoodIndustry4.0 and senior executives representing communication, software and Projesis companies. The first session of the assembly was moderated by MES Committee Coordinator M. Göker Sarp. The majority of MES manufacturers operating in the Turkish market met for the first time in this meeting and discussed the
market’s current situation, market development projections and taking steps for the development, as well as creating / improving communication within. Also MESA utilization rate in Turkey, the process analysis during MES purchase, OEE rates that exist in the industry in Turkey, relations existing with ERP manufacturers, ERP manufacturers’ MES concept and approach to MES projects were discussed. The first meeting was about increasing MES awareness in the industry, MES definition, factors and difference from ERP, consideration of projects to be developed with Industry 4.0 and steps taken to assist. MES manufacturers made a decision to periodically come together, maintain communication and cooperation.
The scope and product promotion program covering the strategic cooperation between TÜRKSAT and Inmarsat was held on September 27 with the participation of Maritime, Transport and Communications Minister Ahmet Arslan, TÜRKSAT General Manager Cenk Şen and Inmarsat CEO Rupert Pearce. TÜRKSAT General Manager Cenk Şen, speaking at the opening of the meeting; drew attention to IT services they offer for e-Transformation in Turkey. Şen said that they use satellite communications services as an alternative, however they also provide back-up the current terrestrial infrastructure. Şen stated that: “Turkey’s currently has 4 satellites in space. Nationally designed and planned to launch into space at the beginning of 2020, domestic communications satellite Türksat 6A project is also available. We
started communication with Inmarsat in 2013. Inmarsat’s 4th satellite service stations in the world will be established in Turkey. With the strategic cooperation agreement we signed with Inmarsat, we have the authority to provide Inmarsat products and services to users with the price and service advantages. Thus, TÜRKSAT will able to offer all services such as coverage and frequency band that cannot be offered through existing communication satellites to users in the global level. We do not only perform a commercial partnership with Inmarsat but also a technology transfer. Inmarsat terminals hopefully will be produced in Turkey with further cooperation.” Pearce expressed that they focus on doing business in Turkey and as everything around us is now hyper-linked with each other, with satellite communications, we could create a hyper-
connected world. Pearce added that as Inmarsat, they have great experience with state partnerships. Minister Arslan stated that with the strategic cooperation between TÜRKSAT and Inmarsat; Inmarsat products will be sold to public institutions. He added: “One or more Turkish manufacturers will be able to produce Inmarsat equipment. This cooperation, in line with strategic objectives, will further enlarge Turkey on satellites and space field and be the beginning of new partnerships and cooperation. On the other hand, the draft law on Turkey Aerospace Agency establishment and the organization of activities related to space were brought to the stage to be submitted to the Parliament. With the Agency’s establishment, Turkey will reach a level of speed improvements in the field of space technologies.”
Mikro Software cooperated with Ticimax Mikro Software offers support for companies that use its products and want to grow via e-commerce opportunities within the “Mikro Software Advantages World” concept. In this context, Micro Software and one of the leading companies in the e-commerce sector Ticimax started a cooperation and announced that the annual rate of specially created e-commerce package for Mikro Software users was 1.800 TL including VAT. Companies using Mikro
Software, thanks to the advantageous e-commerce package available to them under the Ticimax cooperation, will be able to establish an e-commerce site and easily start sales. When you look at the advantages offered by Mikro Software and Ticimax e-commerce, firms can start an e-commerce site and begin sales and have a secure e-commerce site with the power of the cloud e-commerce infrastructure. Unlimited products, categories and
content can be added to the e-commerce site and different marketing tools can increase sales. Advanced SEO application will enable companies to come up at the top positions in the search engines, make social media integrations and offer shopping without subscribing. While companies have the ability to offer special discounts to their members and dealers; with responsive themes that resize according to all devices, they can turn the mobile visits into sales.
Sectoral software will be improved on ERP EMS Software unveils its Octopod software for process management. Developed over 4 years with the target of meeting the needs of ERP solutions, Octopod Software Development Platform came to life with the investment of 5 million TL. Regarding the subject, speaking at the presentation meeting held at the Çırağan Palace in October 4, EMS Software Chairman Şenol Balo stated the ready software packages in the industry do not completely meet the needs
of customers, the efficiency remains below the target and the packages could not adapt to changing business needs. Şenol Balo said that at this point they developed Octopod and shared the following details: “The software packages on the market are ungainly and the specialized software is high priced. Due to the high cost, SMEs are unable to reach customized software and once they purchase a package software, they become dependent
on the company. However, with Octopod, each company can develop its own ERP modules. There is no need for an advanced programmer to use it. After a total of 9 hours of training, anyone can develop software. It is possible to make a design from development platform anywhere there is access to the internet. On the other hand, there is the need of qualified staff in the sector and serious circulation. Graduates do other works, because developing software is a long process.
Octopod promises career to those who want to be a programmer. With 9 hours of training, each new graduate can become an Octopod dealer.” Currently offering ERP consulting and positioning services in 9 countries, EMS Software’s target is the European market with Octopod. In 5 years, Şenol Balo stated that they aim to place Octopod in 20 countries; the primary target market being the UK, followed by Eastern Europe.