Foreign Affiliate Income Exemption in Turkey
The foreign subsidiary dividend exemption under Turkish corporate tax law allows Turkish resident corporations to exclude from taxation the profit distributions (dividends) they receive from their foreign subsidiaries, provided certain conditions are met.The objective of this exemption is to prevent the double taxation of profits earned abroad—first in the country where the subsidiary operates and […]
Participation Income Exemption in Turkey
The participation income exemption is one of the most fundamental regulations introduced in Turkey’s corporate tax system to prevent double taxation. This exemption ensures that a corporation’s share of profits earned as a partner in another corporation is not subject to corporate tax a second time, as the income has already been taxed at the […]
Global and Domestic Minimum Corporate Tax in Turkey
Understanding Pillar Two and QDMTT Implementation The global minimum corporate tax (OECD Pillar Two) represents a fundamental reform designed to ensure that multinational enterprises (MNEs) with annual consolidated revenue exceeding €750 million pay a minimum effective tax rate of 15% in each jurisdiction where they operate. If the effective tax burden in a particular country […]
How is the Intangible Asset Fee Determined?
Intangible assets include trademarks, patents, software, know-how, designs, technical knowledge, copyrights, and all intellectual property elements owned by businesses. The intangible asset fee (royalty/license fee) to be charged for the use of these rights is of critical importance from both a commercial valuation and tax perspective. Under transfer pricing regulations in Turkey, the royalty must […]
Regulations on Bookkeping in Foreign Currency in Turkey
Legal Framework In Turkey, companies may keep their books in a currency other than the Turkish Lira, in accordance with Article 215 of the Tax Procedure Law (VUK) and General Communiqués No. 404 and 569. As a rule, all books and documents must be kept in Turkish Lira (TL). However, companies with certain characteristics are […]
Delivery Note in Turkey: Definition, Types, Issuance Rules, and Legal Requirements
One of the most important elements of commercial operations in Türkiye is the delivery note, which legally documents the delivery of goods and services. For businesses operating in Türkiye, it is mandatory under the Tax Procedure Law (VUK) to officially record all goods dispatched or services rendered.A delivery note is an official document confirming that […]
Reconciliation Services in Turkey
The accuracy of a company’s financial records depends not only on proper bookkeeping but also on the regular verification and alignment of these records with third parties. Reconciliation services ensure financial reliability and transparency by verifying that the receivable, payable, inventory, bank, and intercompany accounts in financial statements match official records. What Is Reconciliation? Reconciliation […]
What Are the Types of Tax Declarations Used by Companies?
The Turkish tax system is based on the declaration of taxable income or value to the official authorities. This method, known as the declaration-based taxation system, covers a comprehensive process from assessment to payment. Taxpayers are required to submit their declarations in the form and within the deadlines set by law. Otherwise, they are subject […]
Invoice Issuance Service
For all companies operating in Türkiye, invoice issuance is a legal obligation governed by the Turkish Tax Procedure Law and related regulations. Managing invoicing processes accurately, timely, and in full compliance with legislation is essential — not only for regulatory compliance but also for maintaining financial transparency and corporate credibility. At ÖzbekCPA, we provide invoice […]
Free Zone Branch Establishment in Turkey
For manufacturers, corporate income tax (CIT) exemption on export profits, along with customs and VAT reliefs, creates a highly efficient operational environment. Selected logistics and service companies may also benefit from exemptions under defined scopes. Why Open a Free Zone Branch? Opening a branch—rather than a new legal entity—enables foreign companies to maintain their parent […]
