Legal and Tax Liability of Company Directors in International Financing Structures
Financing transactions between international group companies, particularly where companies resident in Turkey provide funds to their parent companies abroad, should be treated not only as a commercial transaction but also as a transaction that may give rise to legal liability, tax obligations and, under certain circumstances, criminal consequences. The duties and responsibilities of company directors […]
Digital Transformation in Tax Auditing: Proactive Analysis and Risk Management with KURGAN
The tax auditing approach in Turkey has undergone a significant transformation process with the widespread adoption of digitalisation and data analytics technologies. Developed by the Ministry of Treasury and Finance, KURGAN (Institutional Supervised Analysis System) offers an artificial intelligence and big data-based analysis model, differing from the traditional tax audit approach, thereby making audit processes […]
German Tax Residency and Residence Status: Assessment under Articles 4 and 16 of the Turkey–Germany Double Taxation Agreement
For individuals who are resident in Turkey but have a residence in Germany and spend certain periods of time in Germany during the year, tax residency and the associated risk of full tax liability are among the most critical compliance issues. Particularly when serving as a general manager/member of the management body in a company […]
Corporate Tax CPA Certification Requirement Guide
As of the 2025 fiscal year, certain exemptions and deductions declared in the corporate income tax return are subject to mandatory certification by a Sworn-in Certified Public Accountant (CPA). This regulation constitutes a significant compliance and risk management issue, particularly for companies benefiting from high-value tax incentives. Below is a systematic overview of the main […]
Inventory Stock Counts in Turkey and Their Tax Implications
Inventory stock counts are a mandatory and critical component of tax compliance in Turkey. While often perceived as a purely operational or accounting task, stock counts directly affect corporate tax bases, VAT deductions, and audit exposure. For companies operating in Turkey—especially foreign-owned entities—differences between physical inventory (actual stock) and accounting records can result in unexpected […]
Partial Income Tax Exemptions for Investment Funds and Partnerships in Turkey
Under Turkish tax legislation, certain investment funds and investment partnerships benefit from partial corporate income tax exemptions, meaning that only specific types of income, rather than all profits, are exempt from taxation.The purpose of this regulation is to diversify capital markets and increase investor participation by providing targeted tax incentives. Conditions for the Exemption Application […]
Renewable Energy and Public–Private Partnership (PPP) Project Tax Exemptions in Turkey
In Turkey, companies investing in renewable energy projects and Public–Private Partnership (PPP) projects may benefit from partial corporate income tax exemptions on profits earned during specific periods.These incentives are designed to encourage private-sector participation in large-scale public investments and to support strategic projects in key sectors. Conditions for the Exemption Application and Explanation These tax […]
Overseas Construction, Repair, Assembly, and Technical Service Tax Exemption in Turkey
Turkey provides a corporate income tax exemption for profits derived from construction, repair, assembly, and technical service projects carried out abroad by Turkish resident companies.This regulation aims to enhance the international competitiveness of Turkish contractors and engineering firms in global markets. Conditions for the Exemption Application and Explanation The exemption applies only to services physically […]
Education and Healthcare Facility Tax Exemption in Turkey
To promote private sector investment in socially critical sectors, Turkey provides a corporate income tax exemption for certain newly established private education and healthcare institutions under Article 5/1-ı of the Corporate Tax Law. This exemption aims to increase service capacity, improve access to quality education and healthcare, and encourage long-term private investment in public-benefit activities. […]
Technology Development Zone (TDZ) Tax Exemption in Turkey
In Turkey, companies operating in Technology Development Zones (TDZs / Technoparks) benefit from a major tax incentive: Profits generated from R&D, software, and design activities are exempt from corporate income tax. The purpose of this incentive is to encourage technological innovation, increase high-value-added production, and strengthen Turkey’s global competitiveness.The exemption applies only to income earned […]
