The conditions about the deductions for the payments related to the computers bought from companies residing abroad in line with article 30 of the Corporate Tax Law Numbered 5520;
1- If the computer programs bought from companies residing abroad are sold to the eventual customers or used in an institution without doing modifications on them and/or multiplying, the income will be regarded as a commercial income and the tax cut will not be applied to that kind of payments.
2- If the rights of reproduction, modification, distribution, display of a computer program are reserved within the scope of Copyright, the purchaser will obtain an intangible right. Furthermore, there will be a tax deduction in the ratio of 20% from the royalty payments made to the company residing abroad, in line with the Cabinet Decision numbered 2009/14593.
3- If the company residing abroad prepares a special computer program for an institution, the profit made by the company residing abroad will be regarded as self-employed income and there will be tax deduction in the ratio of 20% in line with the Cabinet Decision numbered 2009/14593.
4- If there is avoidance of double taxation treaty between the country in where the company reside and our country and there is determined a lower ratio as a tax (that ratio is specified as 10% in the treaties), that ratio will be taken into consideration.
Source: Corporate Tax Law
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