How are taxpayers’ liaison offices opened in Turkey taxed?
Liaison offices are established and operated in accordance with the regulations in the Foreign Capital Framework Decree and the regulations in Communiqué on Foreign Capital Framework Decree issued on the basis of this Decree. According to current legislation, liaison offices cannot carry out activities in Turkey and cannot earn or transfer profits and must cover all costs in foreign currencies.
The place of liaison offices in the context of the above definitions is accepted as its workplace and the authorized person carrying out the works are accepted as permanent representatives, since trading is prohibited by law for the liaison offices in Turkey.
Within the framework of these explanations, if the liaison office operates within the framework of the relevant legislation, in other words, it does not engage in commercial and other income-generating activities, the followings are not required;
– Constituting corporate tax liability,
– Notification for starting to work,
– Submitting a corporate tax return,
– Bookkeeping in accordance with the provisions of the Tax Procedure Law.
In the event that the office carries out a commercial activity, it is clear that all these obligations will be fulfilled accordingly.
On the other hand, since the liaison offices are responsible for stoppage over the workers’ wages and workplace rental payments, these offices are obliged in terms of withholding.
Source: GİB
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.
