How the Taxes of the Earnings Attained in Abroad can be deducted?
1- Is the taxes of the earnings attained in Abroad can be deducted?
The taxes of the earnings attained from abroad and transferred to the accounts in Turkey can be deduced from the corporate taxes.
2- WHICH TAXES PAID IN ABROAD CAN BE ENTERED INTO THE ACCOUNT?
According to the related law, article number 7, taxes similar to the income and corporate taxes, can be deducted from the earnings attained from foreign corporates.
3- WHICH ONES CAN BE ENTERED INTO THE ACCOUNT ON THE TAX OF THE CORPORATES WHICH ARE TOTALY LIABLE TO TAX.
The taxes such as income or corporate taxes that were attained by the abroad where they have the right of % 25 capital share are able to be entered into the system. Profit rate added into the earning will be taken into account in accordance with income and corporate tax paid in abroad and similar taxes attained by these earnings.
4- WHAT IS THE UPPER LIMIT OF THE TAXES IMPOSED ON TURKEY BY THE EARNINGS IN ABROAD?
The taxes imposed on Turkey, attained by the earnings of the amount that will be entered into the account. According to the related law, article number 32, the taxes imposed on in Tukey will not be able to exceed the amount attained in abroad. Within this limit, the taxes which are not being discounted on the account term totally or partially will be discounted in the following 3rd account term.
***On the case that incomes attained in abroad are found in temporary taxation period, the taxes paid or cut off in other countries, can be entered into the account later. The amount that will be deducted, will not be able to exceed the amount that is attained from the abroad according to the related law 32.
5- IN WHICH CASES TAX PAYMENT IN ABROAD CANNOT BE DEDUCTED FROM PAYMENT IN TURKEY?
Unless the documents which was confirmed by the responsible authorities of Turkish embassies or the representatives protect the interests of Turkey, are not certified, tax cannot be deducted from the tax imposed on in Turkey.
6- WHAT COULD BE DONE IN THE CASE THAT THE TAXES, TO BE DISCOUNTED FROM CORPORATE TAXES, PAID IN ABROAD, IS NOT SUBMITTED?
In the case that the documents which suggests that the taxes discounted from corporate taxes, are not submitted, the tax which will be paid in abroad, will be calculated on the currency of that specific country and be delayed on the condition of not exceeding
Source:Corporate Tax Law
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