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 […]
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 […]
Compliance with the Uniform Chart of Accounts in Turkey and Penalties
Purpose of the Uniform Chart of Accounts The Uniform Chart of Accounts (UCA) in Turkey has been in force since 1994 to standardize accounting records nationwide. With this regulation, the Turkish Revenue Administration (TRA) aims to: Compliance with the UCA is one of the fundamental requirements of keeping books in accordance with the Tax Procedure […]
VAT Refund and ATIK Liability in the Context of International Transportation
International transportation, in its most general form, refers to the transportation of goods from one country to another. In our country, where transportation activities are particularly intensive, the tax exemptions applied to these activities are of great importance. The Value Added Tax Law contains special provisions for transportation operations, and these provisions are of critical […]
Delivery of Incentive Investment Goods and the VAT Refund Process
The VAT Law No. 3065 contains different applications subject to VAT refund. One of these is the “Delivery of Incentive Investment Goods” under Article 13/d of the Law. Pursuant to this article, invoices issued by the seller are exempt from VAT and are eligible for refund. Points to Consider When Issuing Sales Invoices When issuing […]
Reduced VAT Refund Procedures in Turkey
Reduced VAT refund procedures are regulated under Article 29/2 of the VAT Law General Communiqué No. 3065. This regulation allows companies operating in certain sectors to reclaim the portion of VAT arising from reduced-rate transactions (1% – 10%) that cannot be recovered through deduction. Sectors Covered by Reduced VAT Refund Companies operating in the following […]
VAT Refund Advantage for Manufacturing Exporters
Exceptions List of VAT to be deducted for the last 24 periods prior to the period in which the export is declared (It is sufficient to submit the list of VAT to be deducted covering the same periods once. If VAT payable is declared in any of the previous periods, it is sufficient to submit […]
