About overseas constructions;
1- In regard to connections between central office in Turkey and overseas branch; goods and service movements considered as expense and cost in that office and carried out by issuing an invoice from Turkey to abroad as well as money transactions done between central office in Turkey and overseas branch should be kept separately and they should be evaluated accordingly.
2- Goods exported by means of issuing an invoice by central office to overseas branch and, credits and debits arisen from foreign exchange gained through services carried out by issuing invoices to abroad will be subject to evaluation like credits and debits arisen from export goods and services. Evaluation difference should be taken into account in determination of tax base.
3- It can be obviously seen that credits and debits arisen from money movements between central office in Turkey and overseas branch are not regarded as actual credits and debits. As a result of that, balance of a current account based on money movements does not need to be evaluated.
Source: Corporate Tax Law
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.
