Distribution of general administrative expenses of holding companies to affiliated companies
Holding companies can provide services to affiliated companies in the fields of research and development, financing, marketing and distribution, preparation of investment projects, determination of targets, planning, implementation of organizational decisions, computer services, dispatch and administration, financial revision and tax consultancy, market research, regulation of public relations, personnel supply and training, accounting organization and control, legal consultancy.
It is mandatory to issue an invoice for the services provided by the holding to affiliated companies, and the amount constituting the return for the service provided must be determined according to the principle of conformity with the arms length in Article 13 of the Corporate Tax Law.
In order for such services provided by the holding to be recorded as expenses by affiliated companies, the following conditions are required:
The service must be provided,
The type of service must be specified in detail on the invoice,
If more than one service fee is included in a single invoice, each service fee must be shown separately
In accordance with the conditions specified above, affiliated companies will be able to show the invoice fee issued by the holding as expenses in their records.
Source: Istanbul Chamber of Certified Public Accountants
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