In the special request form, it is asked whether the attorney fees paid to a person engaged in attorney activities within the scope of the enforcement file are subject to income tax withholding.
According to the Income Tax Law:
Attorney fees earned by attorneys are considered as freelance earnings and are subject to income tax withholding. In this context, the debtor company is required to withhold income tax from attorney fees paid to attorneys through enforcement offices. If the payment is made to the enforcement office, the attorney must issue a freelance receipt on behalf of the debtor.
As a result:
In cases where no withholding is made from attorney fees included in the attorney’s income, a tax assessment can be made on behalf of those responsible and the attorney must declare the attorney fee as gross.
Source: Revenue Administration
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