Authorities accelerate tax audits on life coaches

ANKARA

Treasury and Finance Minister Mehmet Şimşek has announced a crackdown on untaxed earnings from burgeoning services like life coaching, mentoring, meditation and therapy.

Tax audits have intensified to ensure compliance across various service sectors, Şimşek told state-run Anadolu Agency on Dec. 12, emphasizing the effort's goal to leave no income stream untaxed.

These audits revealed discrepancies between bank transactions and tax declarations of individuals offering services such as individual consultancy, theta healing, mindfulness, therapy and doula services.

Many providers reportedly failed to declare their full income or file any tax returns at all.

The ministry is currently focusing on audits for individuals in these sectors for 2022 and 2023, uncovering unregistered earnings, Şimşek explained.

"Taxpayers found with undeclared income are being invited to clarify their tax obligations," he said. "We will direct the improvement in tax revenues to productive areas for the welfare of our citizens and the stability of our country."

The ministry has previously introduced measures aimed at streamlining tax compliance for social media content creators.

Those who produce text, images, audio or video for online platforms are now required to obtain a tax exemption certificate and open a designated bank account.

Banks will withhold 15 percent income tax on earnings deposited into these accounts. If annual income from such activities remains under 3 million Turkish Liras for this year, the withholding will serve as the final tax. Earnings exceeding that threshold must be reported through an annual tax declaration.

Last month, Türkiye’s Revenue Administration published a list of more than 36,800 taxpayers with finalized tax debts and penalties exceeding 5 million liras ($145,600).