Will tax deduction be made for the payments rendered to purchase “domain name” from a foreign company? (In Turkey)
The “domain name” purchased from foreign companies on the internet is considered as intangible rights and a 20% corporate tax deduction is required in accordance with the second paragraph of Article 30 of the Corporate Tax Law No.5520, pursuant to the Decree No. 2009/14593 of the Council of Ministers.
However, if there is an agreement to prevent double taxation between Turkey and the country where the firm is located abroad and a lower rate is set forth in these agreements, this rate will be taken into consideration.
Source: GİB
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