For the advertising services provided in the online environment, payments made to non-resident institutions that provide or mediate the provision of advertising services online are subject to a 15% withholding tax in accordance with Article 30 of the Corporate Tax Law.
Within the framework of the provisions and explanations mentioned above, in order for the commercial earnings of non-resident institutions to be subject to corporate tax in Türkiye, they must have a workplace in Türkiye in compliance with the provisions of the Tax Procedure Law No. 213, or they must have a permanent representative, and the earnings must be derived from business conducted at these workplaces or through these representatives. Accordingly, for institutions that do not have their legal or business headquarters in Türkiye:
- Since their commercial earnings obtained abroad are not subject to corporate tax in Türkiye, and
- As long as the processes related to the service, including the contract, are not carried out at a workplace in Türkiye or through their permanent representative, the online advertising services they provide to be published abroad cannot be considered as work carried out at their workplace or through a permanent representative in Türkiye.
Therefore, there is no need to withhold tax on the payments you will make for online advertising services directed at foreign customers that are published abroad under Decision No. 476.
On the other hand, for payments made to non-resident institutions for online advertising services directed at domestic customers and published within Türkiye, a 15% withholding tax must be applied in accordance with Article 30 of the Corporate Tax Law.
Source: Revenue Administration
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
