Share Premium Exemption in Turkey
The share premium exemption in Turkey refers to the corporate tax exemption granted on income generated by joint-stock companies when issuing their own shares at a price above their nominal value during incorporation or capital increase.This income is known as a “share premium” (or “emission premium”) and represents a capital contribution rather than operating income.The […]
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 […]
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
VAT Refund and ATIK Liability in the Context of International Transportation constitute a specialized compliance and cash-flow management area under Turkish VAT legislation. Companies engaged in cross-border freight, logistics, and transit operations must evaluate not only the applicability of VAT exemption but also the correct calculation of refundable input VAT, particularly in relation to economically […]
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 […]