CORPORATE TAX: Liabilities

There are two types of liabilites from the perspective of Corporate Tax.

Full liability tax payers are taxed over their earnings acquired in and outside Turkey.

Limited liability tax payers are taxed only from their earnings and revenues acquired in Turkey.

 

Full Liability Tax Payers

Those regarded as Full Liability Tax Payer as described at the 3rd Article of
Corporate Tax Law (Nr 5520);

1.Those with their registered legal office or business center in Turkey.

Legal Office: as described at the statute or contract or organization law of the firms subject to taxation.
Business Center: any place with the performance of business conduct and transactions or where a business is managed.

 

Limited Liability Tax Payer

Those regarded as Limited Liability Tax Payer as described at the 3rd Article of
Corporate Tax Law (Nr 5520);

1.Those without a registered legal office or business center in Turkey.

Corporations with limited liability status shall be taxed only from the earnings and revenues they have acquired in Turkey.

Earnings of Limited Liability Taxation Scope:
-Commercial earnings of Foreign Corporations via permenant representatives at Turkey
i.e. German based airline Lufthansa's Agency at Turkey.
-Wages earned at Turkey
-Professional employment/service earnings acquired at Turkey
-Earnings acquired via agricultural business at Turkey
-Income generated from rental of real estate property, property rights and movable goods at Turkey
-Return acquired at Turkey from stock and bonds
-Other income and earnings acquired at Turkey

Summary

 

	Full Liability	Limited Liability
Condition	registered legal office or business center in Turkey	without a registered legal office or business center in Turkey
Taxed	earnings acquired in and outside Turkey	only from their earnings and revenues acquired in Turkey