Tax Residency
"How is corporate tax residency determined in Turkey?"
Quick Answer
Companies whose legal seat (registered office) or business centre (the place where the business is actually managed) is in Turkey are treated as tax resident (full taxpayer) under Turkish tax law. Residents are taxed on worldwide income; non-residents on Turkish-source income.
Turkish Tax Framework
Tax Residency in Turkey is governed by various tax laws including Corporate Tax Law, VAT Law, and special legislation. Understanding tax obligations is crucial for business planning and compliance.
Key Points to Remember
- Corporate income tax rates can change by year, sector, and specific rules. Confirm the applicable rate for the relevant fiscal year
- Standard VAT rate is 20%, with reduced rates for certain goods
- Double tax treaties may reduce withholding tax rates
- Tax incentives are available for qualifying investments
Tax Planning Considerations
Effective tax planning requires understanding both domestic Turkish tax law and applicable international tax treaties. Transfer pricing rules follow OECD guidelines and require proper documentation.
Businesses should work with qualified tax advisors to optimize their tax position while ensuring full compliance with Turkish tax authorities' requirements.
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We share general information on tax residency and corporate tax obligations in Türkiye. Contacting us does not create a lawyer client relationship.
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