Related Party Transactions
"What disclosure requirements apply to related party transactions in Turkey?"
Quick Answer
For listed companies, CMB disclosure and corporate governance rules may apply; for all companies, transfer pricing rules require arm’s length terms and proper documentation. Depending on the structure, corporate law restrictions and approval mechanics can apply for transactions with shareholders, directors, or group entities.
When Related Party Transactions Matter
Related party transactions in Turkey are mainly governed by three pillars: the Capital Markets Board (CMB) regime for listed companies (disclosure/governance), the tax transfer pricing regime for all taxpayers, and general corporate governance/conflict-of-interest mechanics under the Turkish Commercial Code (TCC).
Key Points to Remember
- Definition depends on context (CMB/IFRS vs tax)
- Listed companies: disclosure and governance checks for material transactions
- All companies: arm’s length and TP documentation
- Conflict of interest: board member related transactions may require specific procedures and documentation
- Risk areas: loans/guarantees/management fees/IP licensing
- Practical controls: approvals, minutes, benchmarking, written contracts
Practical Compliance Steps
Identify related parties, map transaction types, set approval workflow, benchmark pricing, keep TP files, ensure disclosure triggers for listed companies, and document conflict-of-interest handling.
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We share general information on related party transaction rules and compliance steps in Türkiye. Contacting us does not create a lawyer client relationship.
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