Turkish Tax Law for Foreign Individuals and Companies
Foreign nationals and foreign-owned companies may face Turkish tax obligations through residence, employment, business activity or income earned in Turkey. The office advises on these matters in English and represents clients in tax audits and before the tax courts.
Tax Residency
Under the Income Tax Law (No. 193), a person is considered a Turkish tax resident if their domicile is in Turkey or if they stay in Turkey continuously for more than six months in a calendar year. Temporary stays for a specific task or job, or for study, medical treatment, rest or travel, are treated differently, as is a stay that is involuntary. Residents are generally taxed on worldwide income, while non-residents are taxed on income sourced in Turkey. Which rule applies depends on the facts of each case, and any applicable double tax treaty also needs to be reviewed.
Tax Audits and Assessments
When a tax audit ends with an assessment, the taxpayer receives a notice that states the period, the tax base and the reasons for the assessment. The notice also states the time limit and the court to which an appeal may be filed. These time limits are strict, so notices should be reviewed as soon as they arrive. Possible steps include a settlement procedure, an appeal to the tax court, and a request to suspend enforcement.
How the Office Can Assist
- Reviewing tax notices and assessment reports
- Representation during tax audits and settlement meetings
- Filing and following tax court cases
- General legal advice on the tax position of foreign individuals and Turkish branches or subsidiaries of foreign companies
Return to the English-language overview. Turkish-language articles on tax law are available in the main section of the site.
This page provides general information and is not legal advice. Outcomes depend on the facts of each case.