A company which is based in a foreign country wants to open a branch in Turkey.
Is it possible for its representative in Turkey to be a foreigner?
Since the company will make sales in Turkey, would it be subject to corporate tax?
Also, is it supposed to notarize the books?

The branch to be opened in Turkey will be subject to corporate tax as a ‘’limited taxpayer.’’
All notifications and declarations must be submitted.
In accordance with the Tax Procedure Law (TPL), commercial books must be notarized before the business starts.
The representative in Turkey must be ‘’a resident’’ in Turkey regardless of their nationality.

Source: İSMMMO
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.

A legally obligated shall give an annual return for profit and revenues from and outside of Turkey. (Article 2 and 3  of Income Tax Law and Article 3 of Corporate Tax Law)

Source: İSMMMO
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.

1- The institutions that was established in order to develop and promote agriculture, husbandry, science and arts.
1.1- Schools
1.2- School workshops
1.3- Conservatories
1.4- Libraries
1.5- Theatres
1.6- Museums
1.7- Exhibitions
1.8- Sampling Sites,
1.9- Reproduction Stations,
1.10- Speedway
1.11- Book, journal and  Magazine Stores and Same Institutions.

2- The institutions managed by public institutions to protect the health care of public and animals such as;

2.1- Hospital,
2.2- Clinic,
2.3- Dispensary
2.4- Sanatorium,
2.5- Eventide Home,
2.6- Nursery
2.7-Veteniary General Hospital,
2.8- Animal Shelter
2.9- Bacteriology
2.10- Serology,
2.11– Distofajin and other similar institutions

3- The institutions managed by public institutions for social purposes,

3,1- Provident Funds
3,2– Social Welfare Centers
3,3-  Food Banks and Public Soup Kitchen
3.4- Agency for workshops in punishment
3,5- Poor House
3,6- Dormitory and similar institutions

4- Exhibitions, Fairs and Kermess approved by administrative authorities
5- The canteens in nurseries, guest houses, militaries not rented to the third person belonging to public administrations.
6- Government retirement fund and provident fund and social security institutions
7- Public institutions that get levies and charges in return for the services they carry out.
8- Directorate of privatization administration, privatization and savings deposit insurance fund related transfer, chance games institutions.
9-General directorate of mint and stamp print house, military factories and ateliers
10- Provincial special administrations, Municipalities, Villages and other relative institutions such as;
10,1-Water treatment plants distribute via channel, tube and pipe,
10,2- Public transportation operates within the municipalities,
10.3- Slaughterhouse, limited of slaughtering, transportation, butchery,
10,4- Bathhouse, mill, cold storage, agricultural enterprises established in villages to facilitate villagers lives

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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.

1- The ones making money out of trade,
2- Self Employed people,
3- Corporate tax payers have to pay advance tax.

Ordinary partnerships, collective companies, limited companies; companies are not liable to tax, since they are not liable to corporate or income tax.

Only the earnings of the partners of ordinary partnerships or collective companies are liable to tax.

Who cannot declare advance tax?
1- If the corporate taxpayers of companies are in the process of liquidation,
2- Income tax payers on the basis of simple entry
3- The ones who make restoration and construction,
4- The ones who have income
5- The ones who have real estate property
6- The ones who have income from agriculture,
7- The ones who have other incomes
8-  Self-employed people whose earnings are exempt from tax and the taxpayers who are notaries do not have liability to advance tax.

However, if the ones, who are not liable to advance tax, have an earning coming from another way, have the liability to advance tax.

What is Advance Tax Rates?
For the income taxpayers, tax will be imposed on %15 and
Fort the corporate taxpayers, tax will be imposed on %20.

How is advance tax calculated?
1- For the income tax payers, advance tax will be calculated within the calculation period of three months as %15 on the basis of income.
2- For the corporate tax payers, advance tax will be calculated within the calculation period of three months as %20 on the basis of income.

Paid tax in the same period will be declared if it exists. The rest will be calculated as the advance tax.

Is there any discount or exemptions while calculating advance tax?
Tax payers are able to benefit from discount or exemptions during the calculation period of advance tax.

What will be done if advance tax is not declared properly?
If more than %10 of advance tax is not declared properly, penalty and default interest will be imposed. %10 margins of error have to be declared over tax assessment.

How will default interest be calculated, if advance tax is not paid on time?
Declared but unpaid advance tax will be detected, and default interest will be imposed on the date of declaration.

Is unpaid advance tax be collected from income or corporate tax declared annually?
It is not possible to collect advance tax from income or corporate tax declared annually.

Is it possible to collect unpaid advance tax from the advance tax to be calculated in in the following declaration period?
It is possible to collect unpaid advance tax from the advance tax to be calculated in the following declaration period.

Advance tax will be collected from the income or corporate tax calculated annually.

What will be done for the declared but unpaid tax?
Advance tax amount, declared over 3 months earnings and unpaid and calculated over annual tax declaration, will be deleted.

Default interest will be imposed on declared but unpaid and deleted advance tax. (for the income tax payers 1st March, and for the corporate tax payers 1st April )

Is it possible to discount paid social security organization for artisans and the self-employed premiums on advance tax declaration?
Social security organization for artisans and the self-employed d premiums will be discounted in a limited way if the payment can be detected.

On the condition of not having an earning from the declaration made annually or having not enough earning, paid self-employed premiums will be discounted over income tax payers’ earning and the rest will also be discounted.

Self-Employed Premiums will be show on the declaration as “other payment”.

When are the declaration and payment terms for advance tax?

How will advance tax be imposed on employers who has quit their job, or newly started to work?
Taxpayers, who have started working, will also start to pay tax from the declaration period in which they start working.

On the condition of quitting her/his job, there will not be a tax declaration anymore.

The companies which are on the liquidation process will pay tax after their liquidation process started and after that period they will not give advance tax declaration.

Do construction companies give advance tax declaration?
Each and every company has to give advance tax declaration except for the construction and reconstruction companies.

According to the balance sheet is it possible to exempt the income and corporate taxpayers who keep records from tax?
In the calculation of advance tax assessment and income tax detection, last years’ loss will be taken into consideration.

Source: Revenue Administration
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.

1-Who can work as auditor at corporates?
Auditor can be people or stock corporations composed of the people, authorized by public oversight, accounting and auditing standards authority and obtaining license according to the law of certıfıed publıc accountancy and sworn ın certıfıed publıc accountancy numbered 3568 and dated 01.06.1989.
When one of the below mentioned situations exist,  the ones working with  sworn financial advisor, professional accountant  or with the ones related to those, cannot work as audit in relevant companies.

Situations are as follows:
1.1- If auditor has a share in the company to audit,
1.2- If he is the worker or the director of the company to audit or had this title 3 years before his appointment as an audit,
1.3- If a legal entity appointed as auditor is the representative or the legal representative of the company whom he will audit or is a member of the board of management or has more than %20 shares of the company or is third degree kin to them.
1.4- If he has relations with the company to audit or has share more than %20 of the shares of the company to audit or work with the one of the shareholders of the company to audit,
1.5- If he helped to the company to audit on book keeping or regulating financial tables,
1.6- If he helped to the company in other way except for  book keeping or regulating financial tables,
1.7- If he works with an auditor  whose title taken away because of the reasons shown in 1.1 and 1.6,
1.8- If  more than %30 of his income comes from making money  out of auditing for the last five years, he cannot be an auditor.

2-What is the year condition for auditing?
If an auditor is chosen for 10 years to audit the same company he can’t audit it again unless 3 years pass. Accounting and auditing standards authority has the right to audit this situation.

3-CAN AUDITORS PROVIDE SERVICE WITH THE CMPANIES THEY AUDIT?
It is forbidden to provide service with the companies by the auditors except for  tax or tax audit services.

Source:Turkish Trade 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.

1- HOW VOTING POWER IS CALCULATED IN LIMITED COMPANIES?
1.1- Voting power of limited companies is calculated according to join stock’s nominal par.
1.2- If higher amounts were not decided on corporate charters, each 25 Turkish lira gives righting vote.
1.3- However, corporate charters can restrict shareholders having more than one voting right.
1.4- Shareholder has at least one voting right.
1.5- If it is decided on corporate charter, written vote can be given.
1.6- Corporate charter can also issue voting right as voting right to each shareholder without depending on nominal par. In that case Shareholder’s minimum voting right cannot be less than the total voting right of the other shareholders.

2- IN WHICH CASES COMPANY’S PROVISIONS ARE NOT IMPLEMETED?
Company contract provisions are not implemented on the below mentioned conditions;
2.1- Auditors’ elections
2.2- Special Auditor elections for company’s management or auditing some departments of the company.
2.3- Making decision regarding opening a case

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Source: Turkish Trade 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.

1– What the shareholder of a corporate need to do to use his right?
It is possible for a shareholder to represent himself or to be represented by the person whom he chooses in general assembly to use his right. Representative cannot be one of the shareholders, though.

2- By Whom The Rights Of Shareholders Are Used?
2.1- Property rights stemmed from uncertified securities,  registered share certificate, and certificates are used by the representative chosen written by the shareholder.
2.2- The one who can prove that share payable to bearer is possessory,  is able to use the rights of the shareholder.

Source: Turkish Trade 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.

For the corporate tax payers;

Stock Companies and Limited Partnerships whose capital is shared:

a) General Journal
b) Self Balancing Ledger
c) Inventory Register
d) Board Decision Book
e) Stock Ledger
f) General Meeting Book and Negotiation Book

On the condition that the missing books are registered, General Meeting Book and Negotiation Book and Stock Ledger which are used currently, can be used without opening confirmation. (Commercial Book Notification Temporary Article 3/1)

Limited Companies:

a) General Journal
b) General Ledger
c) Inventory Register
d) Stock Ledger
e) General Meeting Book and Negotiation Book

On the condition that the missing books are registered, General Meeting Book and Negotiation Book and Stock Ledger which are used currently, can be used without opening confirmation. (Commercial Book Notification Temporary Article 3/1.

On the condition that the missing books are registered, General Meeting Book and Negotiation Book and Stock Ledger which are used currently, can be used without opening confirmation. (Commercial Book Notification Temporary Article 3/1)

Tax payers who keep electronic accounts get the books that they have to keep, confirmed except for general journal and general ledger.

Source:Turkish Trade 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.