How are the real estate sale incomes of foreign companies earning in Turkey taxed?
The sale income of real estate properties bought in Turkey by foreign companies having relevant workplace or permanent representative in Turkey in accordance with the provisions of Tax Procedure Law, is required to be taxed as “commercial earning”.
The sale income of real estate properties bought in Turkey by foreign companies which do not have any relevant workplace or permanent representative in Turkey in accordance with the provisions of Tax Procedure Law, as of the day of acquisition within 5 years, is required to be taxed as “other income and earnings”.
On the other hand, foreign company or the person acting in Turkey must submit the income with declaration to tax offices specified in Article 101 of Income Tax Law within 15 days as of the day of acquisition pursuant to Article 22 of Corporate Tax Law, if the taxable income of a limited taxpayer foreign company consists of this income.
Moreover, the exception for income under Article 80 of the Income Tax Law must not be applied to the aforementioned incomes of the limited taxpayer institutions.
Source: GİB
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