Dividend Distribution
"What are the rules for distributing dividends in Turkey?"
Quick Answer
Dividends can only be distributed from net profits after legal reserves. General assembly decides distribution. Withholding tax applies to payments.
Scope and Legal Distinctions
A distribution requires distributable amounts and valid corporate approval; cash availability alone does not establish entitlement. Withholding is a separate tax assessment based on the recipient and payment.
What to Check in Practice
Keep approved accounts, reserve calculations, shareholder or partner decisions and payment records; check treaty documentation for a foreign recipient.
Sources & Authorities
Statutory framework and official guidance for this definition.
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