On July 25, 2025, the Ministry of Finance issued a regulation No. 53/2025 (“PMK 53/2025”) which amends PMK 11/2025 and adjusts the provisions for “other values” as the tax base and “certain amounts” for Value Added Tax (VAT). The issuance of this regulation aims to provide legal certainty while adjusting the imposition of VAT on certain services.

The key changes introduced in this regulation include:

• Insurance sector: VAT on commissions or fees received by insurance agents and insurance/ reinsurance brokerage companies is now set at specific amounts. For insurance agents, the VAT is calculated at 10% × 11/12 of the VAT rate on commissions received, while for brokerage companies, it is set at 20% × 11/12 of the VAT rate on commissions.
• Self-construction activities: The VAT is set at 20% × 11/12 of the VAT rate multiplied by the total cost incurred for the construction, excluding the cost of land acquisition.

PMK 53/2025 became effective on August 1, 2025.