Foreign Subsidiary Share Sale Exemption in Turkey
The foreign subsidiary share sale exemption under Turkey’s Corporate Tax Law allows Turkish resident joint-stock companies to exclude from taxation the capital gains arising from the sale of shares in their foreign subsidiaries, provided that specific legal requirements are met.The main objective of this exemption is to reduce the tax burden on Turkish companies when […]
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 introduced under the OECD/G20 Inclusive Framework (Pillar Two) represents a fundamental reform designed to ensure that multinational enterprise (MNE) groups with annual consolidated revenue exceeding €750 million are subject to a minimum effective tax rate (ETR) of 15% in each jurisdiction where they operate. […]
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 Bookkeeping in Foreign Currency in Turkey
Legal Framework Regulations on Bookkeeping in Foreign Currency in Turkey are primarily governed by Article 215 of the Turkish Tax Procedure Law (VUK) and related secondary legislation. Under this framework, statutory books must, as a general rule, be maintained in Turkish Lira (TRY), unless specific authorization is granted for foreign currency bookkeeping. Foreign currency bookkeeping […]
Delivery Note in Turkey :Definition, Legal Basis, Issuance Requirements and Compliance Risks
Delivery Note in Turkey is a mandatory commercial document regulated under Articles 230 and 231 of the Turkish Tax Procedure Law (VUK). The document evidences the physical movement of goods and constitutes a critical control point within Turkey’s tax audit framework.Failure to comply with statutory issuance requirements may trigger special irregularity penalties under Article 353 […]
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 […]