Introduction Permanent establishment risk in Turkey is one of the most important tax issues for foreign companies doing business with Turkish customers, appointing local agents, sending employees to Turkey, performing services in Turkey, managing projects remotely, using warehouses or operating through Turkish representatives. A foreign company may believe that it has no Turkish tax exposure […]
Introduction Turkey offers a broad range of tax incentives for exporters, manufacturers and technology companies. These incentives are designed to support industrial production, increase exports, attract foreign direct investment, encourage research and development, promote high-value technology activities and strengthen Turkey’s position as a regional production and innovation hub. For companies planning to invest in Turkey, […]
Introduction Stamp duty is one of the most overlooked tax risks in Turkish commercial contracts. Foreign investors, Turkish companies, startups, real estate developers, construction contractors, distributors, service providers and financial institutions often focus on corporate income tax, VAT and withholding tax, while treating stamp duty as a minor administrative item. This approach is risky. In […]
Introduction Payroll tax and social security compliance in Turkey is one of the most important legal obligations for employers. Every employer hiring personnel in Turkey must comply not only with labor law, but also with tax law, social security law, unemployment insurance legislation, electronic declaration rules, payroll documentation duties, wage payment rules and employment record […]
Introduction Foreign investors entering the Turkish market must make one of the most important structural decisions at the very beginning of their investment: should they establish a Turkish subsidiary or open a branch office of the foreign parent company? This decision is not only a corporate law choice. It directly affects corporate income tax, withholding […]
Introduction Double taxation treaties in Turkey play a major role in international investment planning. A foreign investor doing business in Turkey may face tax exposure both in Turkey and in its country of residence. Without treaty protection, the same income may be taxed twice: once in the source state where the income arises and again […]
Introduction Turkey has one of the most developed electronic tax compliance systems in its region. Over the last decade, the Turkish Revenue Administration has expanded the use of electronic documents and electronic ledgers through e-Invoice, e-Archive Invoice, e-Ledger, e-Delivery Note and several other e-document applications. For businesses operating in Turkey, this digital transformation is no […]
Introduction Tax audits in Turkey are a critical legal and financial risk area for companies, foreign investors, branches, shareholders and corporate groups. A tax audit may begin as a routine information request, a sector-based review, a VAT refund examination, a transfer pricing inspection, a withholding tax inquiry or a focused review of a specific transaction. […]
Introduction Transfer pricing is one of the most important tax compliance and risk management issues for multinational companies, foreign investors and Turkish corporate groups. In Turkey, transfer pricing rules apply when a company enters into transactions with related parties and the price, fee, interest rate, royalty, margin or other consideration does not reflect what independent […]
Introduction Withholding tax in Turkey is one of the most important tax issues for foreign investors, multinational groups, Turkish companies making payments abroad and non-resident taxpayers receiving Turkish-source income. In practice, withholding tax may arise on dividend distributions, interest payments, royalty payments, professional service fees, rent payments, online advertising payments, branch profit remittances and various […]