Will there be any stoppage for the supply of materials and thus progress payments, in the event that material supply and civil works are performed under a single contract in construction and repair works extending to years, carried out within the scope of Article 42 of the Income Tax Law in Turkey?
In the event that the material supply and construction works are not contracted separately and performed under a single contract, tax shall be deducted from all of the progress payments including the material supply in accordance with the subparagraph (a) of first paragraph of Article 15 of the Corporate Tax Law No. 5520, since the mentioned works will be evaluated within the scope of construction and repair work as a whole.
Source: GİB
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