Export-Registered VAT (Deferral–Cancellation) Refund – Application, Conditions, Documents, and Deadlines
Export-Registered VAT Refund MethodsPursuant to Article (11/1-c) of Law No. 3065, VAT on goods delivered to manufacturers for export is not paid by exporters. Manufacturers can benefit from this application. Sellers who qualify as “manufacturers” can benefit from the deferral-cancellation application. Requirements for becoming a manufacturer Even if the seller is a manufacturer, products not […]
VAT Refund on Exports: Conditions, Liability Account, Application, and Documents
The Basis of VAT Refund on Exports Export, also known as foreign sales, can be defined simply as the sale (delivery) of goods and/or services outside the borders of Turkey. Export is deemed to have been completed on the date of departure of the goods outside the customs line. In accordance with Article 11 of […]
Capital Increase in Joint Stock and Limited Companies in Turkey
Capital increase in Joint Stock and Limited Companies in Turkey is one of the most common corporate actions, widely used to achieve growth objectives and strengthen financial structure. This process is regulated under the Turkish Commercial Code (TCC) and the Capital Markets Law (CML), supported by specific requirements and reporting obligations in practice. In particular, […]
Operating Method of Expense Accounts: Turkish Accounting System and Uniform Chart of Accounts
Importance of Expense Accounts Within the Turkish Uniform Chart of Accounts (TDHP), the correct operation of expense accounts is essential for ensuring the reliability of financial statements. Particularly with the 7/A option, production and operating expenses play a critical role in calculating costs accurately and determining the company’s profit or loss for the period. General […]
Income Tax Practices in Turkey for Shares, Partnership Rights, and Withholding Tax
With the development of capital markets in Turkey and the diversification of income types, the taxation of income derived by individuals and legal entities from shares, partnership rights, investment income, interest, and other returns has become increasingly important. The Income Tax Law (ITL) and related legislation regulate the taxation of these incomes through filing, withholding, […]
Attribution of Profits to Permanent Establishments Post-BEPS in Turkey
PE and Profit Attribution in Turkey: Core Concepts Permanent Establishment (PE): A fixed place of business (or dependent agent arrangement) through which a foreign enterprise carries on business in Turkey. Profit attribution: Allocation of an enterprise’s profits to its PE based on the PE’s functions performed, risks assumed, and assets used. Post-BEPS Principles for Profit […]
Tax Treaties in Turkey
Tax treaties in Turkey, also known as double taxation avoidance agreements, are international agreements designed to prevent the same income from being taxed both in the country where it is earned and in the country where the taxpayer is resident. These agreements play a crucial role in encouraging foreign investment, facilitating capital movement, and supporting […]
Legal Framework of Transfer Pricing in Turkey
Transfer pricing plays a vital role in ensuring tax compliance and preventing base erosion in economies integrated into the global market. Turkey has closely followed international developments in this area and incorporated them into its domestic legal system, providing clear rules and obligations for taxpayers. This article outlines the legal basis, key regulations, and international […]
Trade Registry Procedures in Turkey
Articles of Association Amendment Process The articles of association are the fundamental legal document regulating the incorporation, structure, activities, and management of a company. Any amendment to the articles of association must be carried out in accordance with the official procedures stipulated in the Turkish Commercial Code (TCC) and must be registered with the relevant […]
Dispute Resolution in Tax Matters – Part 2: Arbitration in Tax Matters
With the increasing complexity of international trade and multinational operations, tax disputes have become a critical issue for both taxpayers and tax authorities. Issues such as double taxation and transfer pricing frequently lead to disagreements between countries, requiring effective resolution mechanisms. Alongside the Mutual Agreement Procedure (MAP), arbitration has emerged as an essential mechanism that […]
