Recent Development

The Radio and Television Supreme Council ("RTÜK") amended the Regulation on the Supervision of Media Service Providers' Commercial Communication Revenue and Revenue Declaration and Collections Payable to the Supreme Council ("Regulation") on August 1, 2019. Pursuant to the amendments, the commercial communication revenues of media service providers holding a license for broadcasting services on the internet are now subject to the Regulation. The amendments also revised the amounts that RTÜK collects from these commercial revenues.

Background

On March 21, 2018, the Turkish Parliament passed the Law on the Amendments to the Tax Laws and Certain Laws and Decrees, adding Article 29/A to the Broadcasting Law, which requires service providers wishing to broadcast on the internet to obtain a license from RTÜK. Details regarding broadcast services, broadcasting transmission, the broadcasting license and transmission authorization, as well as the supervision of broadcasting on the internet are regulated under the Regulation on the Presentation of Radio, Television and On-Demand Broadcasting on the Internet, published in the Official Gazette on 1 August, 2019. For further information on this regulation, please review our recent legal alert.

What's New?

The amendment decreased media service providers' gross commercial communication revenue collections payable to RTÜK to 1.5% from 3%.

Pursuant to the amendments, RTÜK will now collect shares from the commercial revenues of media service providers broadcasting on the internet. Accordingly, the relevant media service providers must declare their commercial communication values according to the provisions of the Regulation.

On the other hand, the commercial communication activities of media service providers broadcasting on the internet but that have a temporary broadcasting right and/or broadcast licenses for cable, satellite, terrestrial or similar platforms are exempt from the Regulation, provided that these organizations provide their broadcasting services simultaneously on its platforms and broadcast their on-demand content on the basis of the same program catalogue. However, if the organizations provide on-demand broadcasting services for their programs broadcasted on cable, satellite, terrestrial or similar platforms with their own logos, these organizations must declare their commercial communication revenues to the RTÜK.

Administrative fees imposed on the media service providers failing to declare their commercial communication revenues according to the Regulation are also applicable for organizations providing on-demand broadcasting services.

Conclusion

Media service providers that fall within the scope of the Regulation and that broadcast over the internet in Turkey or abroad must declare their commercial communication revenues and pay 1.5% of their revenue to the RTÜK. All relevant media service providers must carefully review the Regulation's requirements and take the necessary steps to ensure full compliance.

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