Introduction Controlled Foreign Company rules in Turkey are an important anti-avoidance mechanism for Turkish resident investors that own or control companies established abroad. In modern international tax planning, Turkish companies and individuals may invest in foreign subsidiaries, holding companies, trading companies, intellectual property companies, finance companies, investment vehicles or offshore entities. These structures can be […]
Introduction Thin capitalization rules in Turkey are one of the most important anti-avoidance mechanisms affecting shareholder loans, intercompany financing and related-party borrowing structures. Foreign investors and Turkish companies often use debt financing to fund operations, support working capital, finance acquisitions, provide cash to subsidiaries, cover losses or avoid immediate capital increases. Shareholder loans can be […]
Introduction Reverse charge VAT in Turkey is one of the most important tax issues for companies receiving services from foreign providers. Turkish businesses regularly purchase consultancy, software, cloud services, digital subscriptions, engineering support, online advertising, management services, technical assistance, legal services, accounting support, royalty-related services and other cross-border services from companies located outside Turkey. These […]
Introduction Foreign service providers frequently work with Turkish companies, foreign-owned subsidiaries, exporters, manufacturers, technology companies, construction contractors, real estate developers, banks, e-commerce platforms and multinational groups operating in Turkey. These services may include consultancy, engineering, software implementation, cloud services, management support, legal advice, technical assistance, architecture, design, marketing, online advertising, testing, maintenance, training, data services, […]
Introduction A liaison office in Turkey is a practical market-entry tool for foreign companies that want to explore the Turkish market, coordinate relationships, conduct market research, supervise suppliers, promote their brand, provide technical support or communicate with local business partners without immediately establishing a full commercial company or branch. It is particularly useful for foreign […]
Introduction Corporate tax residency in Turkey is one of the most important starting points for determining how a company will be taxed. Whether a company is treated as a Turkish tax resident or a non-resident taxpayer affects the scope of taxable income, corporate tax filing obligations, withholding tax exposure, permanent establishment risk, double taxation treaty […]
Introduction Turkey is a significant destination for foreign investors due to its strategic location between Europe, Asia and the Middle East, developed industrial base, logistics infrastructure, domestic market size and access to regional trade routes. Foreign investors may establish companies in Turkey for manufacturing, export, technology, e-commerce, construction, energy, logistics, real estate, finance, professional services […]
Introduction Tax dispute resolution in Turkey is a critical legal process for companies, foreign investors, individual taxpayers, accountants, financial managers and corporate groups. Tax disputes may arise from tax audits, additional assessments, VAT refund rejections, transfer pricing adjustments, withholding tax disagreements, fake invoice allegations, e-invoice violations, stamp duty assessments, payroll tax issues, customs-linked tax disputes […]
Introduction Cross-border tax planning in Turkey is a critical legal and financial issue for foreign investors, Turkish subsidiaries of multinational groups, exporters, technology companies, service providers, holding companies, lenders, licensors and international contractors. As Turkey is deeply connected with European, Middle Eastern, Asian and global markets, Turkish businesses frequently make and receive international payments. These […]
Introduction Tax planning is a legitimate and necessary part of doing business in Turkey. Every company has the right to structure its operations, financing, contracts, investments and profit distributions in a commercially reasonable and tax-efficient manner. However, Turkish tax law draws a clear line between lawful tax planning and unlawful tax avoidance or tax evasion. […]