On July 10, 2019, the Turkish Revenue Administration addressed the tax implications of transferring a balance-sheet-based sole proprietorship to a limited company established on April 17, 2018. The transfer of the sole proprietorship signifies the cessation of business under personal liability according to income tax and tax procedure laws. The transfer of the business’s assets and liabilities to the limited company affects the requirements for tax withholding and declarations. Articles 193 and 94 of the Income Tax Law outline when tax obligations must be fulfilled. According to the Value Added Tax (VAT) Law, it is also necessary to report the transferred transactions through the VAT declaration.
Source: Revenue Administration
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