The Revenue Administration has made a statement regarding the tax obligations of heirs who continue the business activities after the death of the decedent. If the heirs wish to continue the business, a tax liability must be established in their name. If the activity is continued, book registration, invoice issuance, and the transfer of certain documents may be necessary. Moreover, if the heirs form a partnership, it is considered a joint venture, and the tax liability is established accordingly. Various regulations have been made under the Tax Procedure Law, the Income Tax Law, and the VAT Law. The heir taking over the business will calculate VAT on the transfer and report it in the relevant tax return.
Source: Revenue Administration
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