Republic of Türkiye
REVENUE ADMINISTRATION
Antalya Tax Office
Income Laws Group Directorate
Date: 15.06.2020
Subject: Acceptance of Advertising and Kickback Expenses
In response to your request, it has been stated that your company is involved in tourism agency and operator services, providing accommodation, transfer, and tour services to tourists through foreign tourism operators. Occasionally, due to disruptions in services or deficiencies in accommodation, complaints are received from tourists, resulting in refund invoices being issued by foreign operators under titles such as “advertisement” or “kickback”. Even if these invoices are issued in the current fiscal year, they may relate to previous years, and your company only becomes aware of them when the invoice is received.
According to Turkish tax laws and relevant principles, such expenses, even if related to past years, may be considered as deductible business expenses for the period in which they are invoiced, provided they:
- Are appropriate to the nature of the work and proportional to the scale of business,
- Are documented with proper supporting documents in accordance with the Tax Procedure Law,
- Are not caused by the fault of your company, shareholders, managers, or employees.
Thus, such expenses can be deducted when calculating corporate income, subject to compliance with these conditions.
Source: Revenue Administration
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