Turkish Grand National Assembly Warning: You Are Viewing Act, The Parliamentary General Assembly Has Already Adopted. If It Does Not Include The Changes Made Later. Corporate Tax Law

Original Language Title: TÜRKİYE BÜYÜK MİLLET MECLİSİ Uyarı: Görüntülemekte olduğunuz Kanun, TBMM Genel Kurulunda kabul edildiği halidir. Varsa daha sonra yapılan değişiklikleri içermemektedir. KURUMLAR VERGİSİ KANUNU

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Read the untranslated law here: https://www.tbmm.gov.tr/kanunlar/k5520.html

Law No. 5520

Acceptance Date: 06/13/2006

taxpayer subject and the subject of tax Taxpayers

Article 1 (1) the gain of the institutions listed below are subject to corporation tax:
a) Capital companies .
B) Cooperatives.
C) Economic governmental organizations.
D) economic enterprises belonging to the association or foundation.
D) joint venture.
(2) corporate income consists of income elements falling within the scope of income tax.
Article 2 (1) capital companies: 29/6/1956 and 6762 the Turkish Commercial Code anonymous established in accordance with the provisions, limited capital and foreign institutions of similar nature divided by limited companies the shares is a capital company. The implementation of this Law, the Capital Markets Board shall be subject to the regulation and supervision of funds with similar foreign funds, these funds shall be deemed a capital company.
(2) Cooperatives: 24/04/1969 dated and 1163 are established according to the law or private law refers to foreign cooperatives and cooperatives of a similar nature.
(3) Economic public institutions: state, special provincial administrations, municipalities, belonging to other public authorities and institutions or, depending on whether the activities with continuous and first and second paragraphs commercial except, industrial and agricultural enterprises are public economic institutions.
(4) Foreign governments, foreign public administrations and institutions belonging to or is connected, first and second paragraphs of this article, except for commercial, industrial and agricultural enterprises, public institutions are regarded as economic.
(5) economic enterprises belonging to the association or foundation: association or a foundation belonging to or depending on whether activities are continuously available and this article's trade outside the first and second paragraphs, industrial and agricultural enterprises and foreign enterprises of a similar nature, are operating economic associations or foundations. union associations in the implementation of this Act; The foundation is considered communities.
(6) Economic public organizations and associations or foundations of economic it is not businesses-profit-making, is not among the tasks assigned by law, the activities, the absence of legal personality, independent accounting and does not affect the absence of the obligations of their allocated capital or business place. Be enough to cover only the cost price of the goods or services, the allocation of the profit or the profit does not change the purpose of the establishment of their economic nature.
(7) Joint ventures: The above paragraph in written institutions themselves or party partnerships or with real people, to be installed jointly done with a particular job and those who seek to be this way obligation plant the partnership they have established in order to share the winnings are joint ventures. Their absence does not affect the liability of legal persons. Full and limited liability

Article 3 (1) Full liability: legal or business center of the few institutions which Article 1 of the Law in Turkey, both are taxed on all income derived outside of Turkey and Turkey.
(2) limited liability: that is not in Turkey, both legal and business centers of the few institutions in Article 1 of the Law, are taxed only on the income that he earned in Turkey.
(3) limited liability on corporate income, earnings and revenues consist of the following:
a) 213 dated 4/1/1961 according to the Tax Law by foreign entities that hold that place of business or permanent representative in Turkey this commercial gains included in or derived from work done by these representatives (these conditions cause any even if they are to be exported to the institutions they take goods purchased in Turkey gains from referring to without selling the foreign countries in Turkey, is not deemed to have been achieved in Turkey. in order to sell in Turkey, buyers or the seller or both in Turkey or if the sales contract is done in Turkey.).
B) gains derived from agricultural businesses in Turkey.
C) self-employment income obtained in Turkey.
D) the revenues derived from the rental of movable and the rights to immovable property in Turkey.
D) The capital gains obtained in Turkey.
E) Other income and gains obtained in Turkey.
(4) of this Article in Turkey to obtain specified items of income or gain possession of the annuities and permanent representative areas in Turkey, No. 193 dated 31/12/1960 and the relevant provisions of the Income Tax Act applies.

(5) Magnificent centers: the establishment of a taxable corporation law, the statute is shown in the main centers in the status or contract.
(6) Business center: The center of the process in terms of the actual work is collected and managed.

Exemptions and Exceptions SECTION

Exemptions Article 4 (1) institutions listed below, are exempt from the tax:
a) agriculture and livestock by public administrations and institutions, science, of scientific and to teach fine arts, disseminate, develop and schools operated in order to encourage school workshops, conservatory, libraries, theaters, museums, exhibitions, sample nurseries, seeds and animal development and production stations, racing places, books, newspapers, magazines, publishing houses and other organizations .
B) operated hospital in order to maintain the overall human and animal health by public administrations and institutions and treatment, clinics, dispensaries, sanatoriums, nursing homes, child care centers, animal hospitals and dispensaries, veterinary nursing, veterinary bacteriology, serology, distofaj's organizations and so on organizations.
C) public administration and run by social purposes by organizations compassion, pledge and support funds, social welfare institutions, poor food bank, penalties and enforcement institutions and detention centers belonging to işyurt, the hospice workshops, dormitories, boarding houses and similar establishments.
D) opened with the permission of the competent administrative authority by local public administrations and institutions, national or international nature exhibits, fairs and fairgrounds.
D) is under the general management of public administration, serving only to government officials, non-profit nursery and canteen in the military barracks and not rented to third parties and inns.
E) social security institutions and pension and relief funds are established by law.
F) in return for work or services they do and levies to public agencies.
G) Privatization Fund and the Privatization Administration, Housing Administration and the General Directorate of National Lottery.
H) the condition of being limited to the relevant business organizations, the General Directorate of Mint and Printing with military factories and workshops.
I) special provincial administrations, municipalities and villages with the units they create them or run their affiliates;
1) channels, similar to the way that water distribution pipes and with businesses,
2) passenger transport businesses operating within the municipal boundaries,
3) Slaughter, slaughter houses is limited to the transport and storage businesses.
I) village or village associations run to meet their common needs of the villagers bath, laundry, mills, cold storage and to operate in the province to which they are attached, provided passenger transport enterprises and farms belonging to villages or village associations.
J) the General Directorate of Youth and Sports of the autonomous sports federations to be registered sports club and sports training activities with economic enterprises located in the joint-stock company with only exercise and sports activities.
K) Consumption and except transport cooperatives, non-distribution of profit on capital in the articles of association, not receive a share on earnings of the chairman and members, are not distributed to the shareholders of the reserves and only be seen working with partners (giving money times the land belongs to them of building cooperative each to obtain a work or residence are not considered common external transactions for the stock.) and has the provisions for these provisions to actually wake up cooperatives with these terms and until the expiry date of the construction of the foundation, in addition to requirements management and control of the boards, the said construction work partially or totally real undertaking people with according to the legal person representative or the Law Article 13 considered to be associated with these people or who do not place those found in labor relations with the above and construction permits and land deeds cooperative building societies which are registered in the name of the legal entity.
L) Foreign countries and international financial institutions in the framework of financial and technical cooperation agreements with is only small and medium-sized established to provide loan guarantees to businesses, adding to gains of collateral responsibility fund gained from these activities, and the scattering of the common funds they have for small and medium sized organizations and institutions that provide credit to businesses that invest in banks.

M) institutions and organizations involved in scientific research and development activities exclusively (conditions related to the loss of the benefit from these tax exemptions and exemptions are determined by the Ministry of Finance.).
N) to prepare the infrastructure of organized industrial zones and small industrial sites are located around practices; land, electricity, gas and economic business users to meet the public and public institutions created real and legal persons with professional organizations in the nature and gain all the common needs of these places in order to meet common needs such as water and steam.
(2) procedures for the implementation of this Article shall be determined by the Ministry of Finance.

Exceptions Article 5 (1) gains the following institutions are exempt from tax:
a) the Authority;
1) fully liable to be subject to earnings because they get to participate in the capital of another institution (excluding dividends derived from shares of investment companies with participation certificates of the Fund)
2) Full liability to the subject of the founding shares giving the opportunity to participate in the profits of another institution the dividends they receive from other usufruct.
B) legal or business center in Turkey are not anonymous and limited liability companies in the nature of the institutions participating in the capital of the company, with the following terms and conditions of participation earnings gained from these subsidiaries;
1) of the company which holds the associates share abroad to have at least 10% of the subsidiary's share capital,
2) continuous retention for at least a year in the share participation as of the date obtained from the gain (pre-emptive right to use or through foreign affiliates of domestic resources obtained due to capital increases made by the subsidiary owned to share are based on the date of acquisition of the former shareholding.)
3) foreign subsidiary earnings dividends that are participating include taxes paid on earnings source distribution at least 15% income and corporate taxes so the total tax burden for carrying the tax burden on the institution in which it operates; Of investment is the company's principal activity, in case of submission or that the securities investment of leasing, including funding or insurance services, participation is that the operating tax burden that no corporate revenue at the rate of minimum corporate tax applicable in Turkey and corporate taxes so the total tax burden transportation,
4) Investment earnings, which were obtained from institutions for the fiscal year until the submission date of the tax return to be transferred to Turkey.
Construction abroad, repair, installation works and technical services in cases where it is necessary to establish a separate company by the relevant national legislation can be made, as provided in the articles of incorporation that established for the specific purpose and actually the absence of activities outside of this purpose, provided that resulting from the subsidiary to the company in question conditions specified in this paragraph shall not be required for the gain.
This paragraph in accordance with the tax burden, legal or business center accrued in the related period in the country of dividends, the total revenue, including tax paid on the profits the source distribution and corporate taxes like tax, incurred with the total distributed corporate income obtained during this period community and corporate income tax is determined by the proportion of the total.
C) earnings as of the date obtained by continuous for at least a year at 75% or more of total assets other than cash assets, legal or business center at least 10% in each capital of the company or joint stock limited company attributes not found in Turkey consisting of shares in resident companies must be subject to at least two full years in the corporate income arising from the disposal of assets located in foreign equity investments.
D) in excess of the nominal value of the shares at the price of the order in which they improve their organization and the capital of joint stock companies.
D) established in Turkey;
1) securities investment funds and trusts in the portfolio management gains are
2) Portfolio established in Turkey traded in the stock market and gold-based precious metals investment funds and trusts in the portfolio management gains are
3) Venture capital earnings of investment funds and trusts,
4) earnings of real estate investment funds and trusts,
5) the income of pension funds,

6) Housing finance funds and asset finance funds income.
E) of the institution for at least two full years for immovable property located on assets and equity investments by the founders to have the same for shares, preferred shares and 75% of the gain from the sale of pre-emptive rights.
This exception is applied at the time the sale was part of the sales gain and benefit from the exemption until the end of the fifth year following the year the sale was held in a special fund account in liabilities. However, the sales price, the sale was the second calendar year following the year must be collected until the end of. not accrued time exception because the sales price corresponding to the tax not collected within this period shall be deemed to have suffered loss.
To exempt gains than a capital of five years shot in any way the transplanted or business to another account or taxpayer institutions headquarter exception due to accrued non-tax timely applied to imported parts deemed to have suffered loss. liquidation of the company within the same period (excluding acquisitions and divisions made by this Act) if these provisions are applied.
As a bonus or pre-emptive rights of the date of acquisition of the shares with the nominal value obtained by using ownership are based on the date of acquisition of the old shares.
Transfer or division of immovable property inherited by, participation shares, founding shares and the sale of pre-emptive rights to dividend shares in the two years the account transfer is also considered the time in owned or divided institution.
Securities or real estate trading and gains derived from the sale of rental value of institutions dealing with this purpose they had in their hand is outside the scope of the exception.
F) because of debts to banks were the legal proceedings or the Savings Deposit Insurance Fund owes immovable property they own in their guarantors and mortgage that with corporate, equity investments, preemptive rights of founder shares and dividend shares, the bank in response to the debt or from the Fund's transfer 75% of the gain from the sale of these securities obtained in this way they provided the bank with all of the proceeds used in part earnings attributable to the liquidation of the debt.
G) of organizations or businesses located abroad with the following terms of corporate earnings gained through the permanent representatives;
1) these gains, the birthplace of the country at least 15% of income in accordance with tax laws and corporate taxes so the total tax burden to carry,
2) annual corporate financial period is obtained earnings should be given the tax return date up to Turkey having been transferred
3) main fields of business, including leasing finance supply, the provision of insurance services or in securities investment the organization, it gains the country of birth and tax laws in accordance with at least institutions implemented in Turkey income income tax rate and the corporate tax similar the total tax burden to carry.
The total tax burden, pursuant to the first paragraph (b) shall be determined according to the definition in me.
H) construction carried out abroad, repair, providing technical services and works gains reflected in the overall results account in Turkey.
I) pre-school education, primary education, for the operation of special education and secondary special schools by the Council of Ministers granted tax exemption by foundations or philanthropic associations connected to rehabilitation centers within the framework of the procedures are to be determined by the Ministry of Finance by obtaining the opinion of the Ministry obtained as five fiscal periods gains were (Exception, which now starts from the fiscal operations of the specified schools and rehabilitation centers.).
I) Cooperative in return for administrative expenses of the common parts by harcanma returned with the money they pay to shareholders of the cooperative referred to below;
1) Consumer cooperatives, joint personal and familial food and clothing needs of the value of the goods they buy to meet,
2) Production cooperatives, joint of producing cooperatives they sell or cooperative than the value of the goods they purchase for use in manufacturing operations,
3 ) credit cooperatives, the credit used by the public, they calculated according

This distribution to shareholders of risturn dividend distribution does not count. Risturn or in cash at the same value does not preclude the application of the exemption to pay the cost.
Partners with the exception of the provision of anyone else with earnings arising from transactions related to risturn on gains arising from transactions with outside partners partnership status does not apply. Their separation from the general earnings, the ratio of the volume of overall business volume of business with partners prevail.
(2) the Ministry of Finance to determine the procedures for the implementation of an exception in this Article is authorized.
(3) Excluding financing expenses related to the purchase of shares of associates, institutions of corporate expenses relating to income that are exempt from tax or losses of its activities under exemptions, lowering the exception of non-corporate profit is not acceptable. PART

Payers Assessment and Payment of Tax Base Determination

SECTION net profit
Article 6 (1) corporate income tax, a fiscal year of the taxpayer they receive in net corporate earnings are calculated over.
(2) in determining the profit Safi institutions of the Income Tax Act, the provisions on commercial gain. institutions engaged in agricultural activity in the determination of gains from these activities, the provisions of the Income Tax Law of the last paragraph of Article 59 are also taken into account.
Controlled foreign corporate income
Article 7 (1) resident real persons and institutions directly or indirectly, individually or jointly, the right to dividends or voting control by having at least 50% foreign country they associates of corporate earnings, do not get distributed or if you happen with the following conditions, institutions in Turkey are subject to tax:
a) subsidiary proportional to the activity of 25% or more equity of the total gross revenue, trade carried out by the organization and personnel employment, agricultural interest or self-employed activity outside, dividend, rent, license fee, which consists of passive income such as sales of securities.
B) the foreign subsidiary income through the commercial balance sheet profit of less than 10% and corporate taxes so the total tax burden to carry.
C) 100.000 YTL equivalent of the board of the subsidiary for the year does not exceed the total gross proceeds of foreign currency abroad.
(2) the total tax burden in the first paragraph, the first paragraph of Article 5 of the Law (b) shall be determined according to the definition in me.
(3) as a control rate, the highest rate owned at any time in the relevant period are taken into account.
(4) The first case of the fulfillment of the conditions in paragraph which have acquired the subsidiary established abroad profits overseas subsidiary's fiscal year that includes the month of closing the accounting period as the resident corporations, institutions are included in proportion to their shares of the tax base.
(5) If this material to be distributed subsequently by the agency based on the income taxed abroad, based in Turkey, not taxation of dividends derived part is subjected to the tax authorities. Deductible expenses

Article 8 (1) in determining the profit calculated institutions such as commercial gain, taxpayers may also download the proceeds following expenditures:
a) Securities issuance costs.
B) the establishment and organization expenses.
C) merger with expenses for meetings of the General Assembly, acquisition, division, dissolution and liquidation expenses.
D) the limited partner profit share in the share capital divided into limited liability companies.
D) profit shares paid by participation banks in exchange for participation account.
E) insurance and reinsurance companies in the insurance contract is related to the ongoing provision in the balance sheet day, the following technical provisions;
1) Outstanding claims provisions; accrued and calculation of damages have been identified and compensation or damages and compensation if this analysis is performed and realized with an estimated value of all costs associated with them, but not reported claims costs and the costs related to these reinsurers after deductible corresponding to retention shares and the remaining amount It is composed of outstanding claims reserve adequacy difference.

2) Provision for unearned premiums; force in insurance contracts accrued for the premium line basis over the remaining amount after deducting commissions from the overhanging part after the balance sheet day, the reinsurer is calculated on the same basis is the amount remaining after deduction of the shares. However, this amount, transport insurances, annual premiums of the companies from the amount after deducting the commission can not exceed 25% of the remaining shares in their custody. the unearned premium reserve of the day that can not be calculated on the basis of reinsurance and retrocession transactions 1/8 method applied.
3) mathematical reserve in life insurance is calculated separately on each contract. Provision of interest on the part invested in securities of which are exempt from tax on income and dividends, can not be shown in expenses.
4) The provision of; fire and engineering received in respect of the earthquake guarantees given in the insurance industry and the company of the sum of their storage dated 12.21.1959 of the remaining premium on share and 7397 Insurance of Supervision Law and the portion is calculated in accordance with Article 25 of the income of the fund is invested in the provision in the previous fiscal year. The provision be transferred to the account of premiums, it will not be subject to the application of this law in the calculation of the unearned premium reserve.
5) insurance technical reserves set aside a balance sheet period, the following is added to the balance sheet profit of the same period.
Loss deduction
Article 9 (1) Institutions in determining the tax base, corporate tax amount for each year in return for loss deductions are made the following condition to be shown separately:
a) five years in return for the past years provided they do not transport more Situated damages. The following terms also searched for the downloaded performed a full division process as a result of dividing the passage of the inherited amount of equity in institutions and inherited precious proportional losses under the essence of the 20th paragraph of the article with damages exceeding the amount of capital of the Article 20
Law as of the date of transfer of the institutions taken over in the framework of the first paragraph:
1) it is given in the legal period of the last five years on the corporate tax return.
2) to continue for at least five years after the acquisition of the activities of the institution or transfer accounts that occurred during the period of division.
Case of violation of these conditions, the tax accrued for losses due to non-tax deduction rather than time is considered born.
B) institutions in Turkey, except those related to earnings are exempt from tax losses from overseas operations provided they do not transport more than five years;
1) which are served, including damage to the declared tax base according to the country's tax laws each year, it is connected to a report by the organizations the control authority according to national legislation
2) has been translated with the original of this report is an example of the related tax office in Turkey submission is made subject to discount if
Audit institutions to prepare their tax return contained in the annex to the report, balance sheet and income statement, it has to be approved by the competent financial authorities in the country. In the absence of audit firms in activity on the country, the tax returns of each year, the Turkish embassies and consulates that in one instance the scene taken from the competent authorities, if there onaylatılarak to representatives of the same nature in the country protecting Turkish interests, submitted to the relevant tax authorities in an original and translated for example, is sufficient.
Deductions made in Turkey's foreign losses to be deducted in the case of written or expenses in the country, outside the country to be included in the return in Turkey gain from the previous amount is written off or goes.
(2) the Ministry of Finance to determine the procedures for the implementation of this article is authorized. Other discounts

Article 10 (1) Authority in the determination of the tax base; institutions, provided that it shows also on the tax return, made the following discounts, respectively, from the corporate income:
a) Taxpayers, research and development spending for new technology and information research exclusively realized by enterprises within the amount to be calculated at the rate of 40% of the "R & D deduction."

Research and development expenses not directly related to the research and development and totally subject to depreciation over the activities of R shares issued of the depreciation amount calculated for economic Securities & D deduction is not calculated. Base the amount can not be deducted in the relevant period due to insufficient, assigns the next fiscal year. R & D expenditure will benefit from discounts and the scope of the Ministry of Finance to determine the procedures and documents required for the application is entitled to benefit.
B) dated 21.05.1986 and numbered 3289 in accordance with the Youth and Sports General Directorate of Organisation and dated 06/17/1992 and numbered 3813 Turkey Football Federation, the Law on the Establishment and Duties of the laws referred to the sponsorship expenditure made under the Law on Duties for detected all amateur sports, 50% for professional sports.
C) General and special budget public administrations, special provincial administrations, municipalities and villages, the Council of Ministers tax exemption, foundations and public benefit associations with scientific research and development activities in the institutions and in return receipt to and donations of the total of assistance that year institutions of up to 5% of the profits.
D) (c) school donated to public institutions and organizations listed in paragraph, health care facilities, 100 beds (development in priority regions in 50 beds) not less than capacity dormitories kindergartens, orphanages, hence the construction of nursing homes and care and rehabilitation center spending or all of the cash and in-kind donations and aid of all kinds for the construction of this facility with all donations and grants made to these organizations in order to continue the activities of existing facilities.
D) General and special budget public administrations, special provincial administrations, municipalities and villages, the Council of Ministers tax exemption, foundations and public benefit associations and conducted by institutions and organizations involved in scientific research and development activities or the Culture and Tourism Ministry supported or deemed appropriate support;
1) non-trade related to culture and art activities of national or international organization to be realized,
2) culture of the civilization heritage of our country, art, history, literature, architecture and books for about or promoting the country with intangible cultural heritage, catalogs, brochures, films, tapes, CDs and DVDs, magnetic, electronic, and audio, including those produced by ICT, preparation of visual or printed material, publication of reviews and research about them, both domestically and abroad, distribution and the provision of promotion,
3) Writing and rare works of conservation and to be transferred to electronic media, these works of Culture and Tourism Ministry of the collection to be gained,
4) 21/7/1983 dated and numbered 2863 Culture and maintenance of immovable cultural property under the Natural Heritage Conservation Act, repair, kept alive , survey, restoration and restitution projects done and to transfer jobs
5) Salvage excavations, scientific excavations and surveys to,
6) abroad in the real Turkish culture in situ conservation or countries belonging to our cultural assets of the work to be brought to Turkey ,
7) Establishment of Culture inventory studies,
8) culture and fine art with movable cultural assets under the Natural Heritage Conservation Act, contemporary and traditional products and works in the field of handcrafts culture and getting to the Ministry of the collection and the provision of security, | || 9) intangible cultural heritage, fine arts, cinema, contemporary and field research with production and activities in their traditional craft areas, training or practice centers, workshops, establishment of the studio and film set, maintenance and repair of all types of vehicles and equipment film making with supply,
10) Libraries, museums, cinemas and art galleries and cultural centers, theater, opera, ballet and construction of exhibition plants where the cultural and artistic activities such as concerts, repair or modernization works, with spending on
receipt 100% of donations and aid money. The Council of Ministers, regions and types of activities As this rate is authorized to bring up the download or up to half the legal level.

E) assist the Council of Ministers decision taken by the Prime Minister through the provision of natural disasters due to the receipt of all donations made in kind and cash.
(2) if made in cash of donations and aid, donated or aid the subject of forming the goods or the cost or carrying amount of the right, this value will be based on the value to be determined by the discretion commissions according to the present is not the Tax Code.
(3) the Ministry of Finance to determine the procedures for the implementation of this article is authorized.

Discounts are not accepted Article 11 (1) of corporate income is determined not acceptable to make the following discounts:
a) Self-interest paid on capital or calculated.
B) Implicit interest on capital paid or calculated, exchange rate differences and similar expenses.
C) Transfer of profits distributed implicitly through pricing.
D) each way in and no matter what my name allocated reserves (the Turkish Commercial Code, the institutions of the establishment laws, regulations, general, including provisions set aside by banks according to according to the main statute or contract with all the reserves set aside from the net earnings of the Banking Law).
D) any fines the corporate tax is calculated in accordance with this Law, the tax penalties, 07.21.1953 dated and 6183 penalties paid Public Receivables based on Collection Procedure Law, Tax and late fees and interest Procedure Act pursuant to the provisions paid default interest.
E) Without prejudice to the law or with the hadle determined based on the authority given by the law, with damages resulting from the issuance under the securities of nominal value paid in the case of securities commissions and all kinds of expenses.
F) business acquired by or registered with the Charter; yachts, cutters, boats, aircraft and motorized watercraft such as a speedboat, without the expense and amortization related to the business operations of the aircraft such as helicopters.
G) of the institution, except for compensation penalty imposed as a condition in the contract itself, partners, managers and material and moral damage compensation expense arising from crimes of its employees.
H) arising from the acts committed through the press or radio and television broadcasting material and spiritual losses due to compensation expenses paid.
I) all kinds of alcohol and alcoholic beverages, tobacco and tobacco products advertising and 50% of advertising expenditures. The Council of Ministers is authorized to download up to this rate increase up to 100% or zero.
Disguised capital
Article 12 (1) of the institutions, ensuring directly or indirectly from those associated with public or shareholders of debt that the company, in the accounting period any time in the institution in excess of three times the equity for the relevant period hidden capital counted.
(2) during the above-mentioned comparison, only except the borrowing made from associated companies funding by loan companies, operating in accordance with the main activities and joint or borrowing made in partnership with related banks or other lending institutions consider 50% It is taken.
(3) For the purpose of this article;
A) The Company's related person, a partner, either directly or indirectly at least 10%, as a partner, or at least this rate it or an institution is entitled to dividends or directly or indirectly, a partner or partners associated with the capital of these institutions, votes or profit a real person or institution, which holds at least 10% in the hands of the shares entitled to share
b) equity, institutions Tax Procedure Law has been determined in accordance with accounting periods beginning on equity capital represents
(4) Where the Authority of the acquisition of the shares traded on the Istanbul Stock Exchange, the common shares due to the related person or partnership mentioned in borrowing obtained from at least 10% shareholding is sought.
(5) The rates mentioned above are considered collectively for people in relationships where partners, lenders and partners.
(6) borrowings listed below are not considered discretionary capital:
a) borrowing from third person in exchange for non-cash collateral provided by the institution or person associated with common partners.
B) of the subsidiaries of the institution of the person associated with partners or partners, banks and financial institutions or from partially or completely in consideration of the debt on the same terms by providing the capital markets.

C) 5411 debt made by banks operating according to the Banking Law.
D) 3226 leasing companies, operating under the Financial Leasing Law, their No. 90 Lending Works on operating under Decree financing and factoring companies regarding these activities of mortgage financing institutions from banks mentioned person associated partner or partner borrowing.
(7) except for exchange differences on disguised capital, interest and other payments or calculated amounts, the implementation of the Income and Corporation Taxes Act, should the borrower before providing both debt as of the last day of the of the accounting period covered capital requirements distributed dividends or narrow It counted the amount transferred to the main centers for taxpayers. Previously made taxable transactions, the adjustment to be made in full before the taxpayers to cover the difference in exchange for capital implicitly, the taxpayers side which is adjusted accordingly. So far, that the taxes imposed on the institutions covered using capital to make this fix and must be paid. disguised profit distribution via
transfer pricing
Article 13 (1) Institutions, if the associated person with the arm's length principle to the contrary as a detected their prices or to over goods or services purchase or sale, earnings fully or partially covered through transfer pricing deemed distributed. Buying, selling, manufacturing and construction operations, renting and leasing operations, to borrow money receiving and giving, bonuses, operations that require fees and similar payments in each case of goods or services received or regarded as sale.
(2) Related person; its partners, institutions, real person or entity with authority where the respective institutions or partners, in terms of control or capital is directly or indirectly connected to or refers to real people or institutions that have under the influence. spouses of partners, including third degree and siblings and their spouses or common-law yansoy kin and relatives are also considered related persons. country tax system that results in a gain, with the taxation capacity created by the Turkish tax system is providing any taxation opportunity at the same level and information exchange aspects of the consideration by the Ministers of all transactions with people in the countries or regions declared by the Board deemed to be made with related parties.
(3) arm's length principle, the associated person with the goods or service purchase or sale of administered price or cost, including means that according to the price or value would be if such a lack of relationship. Arm's length principle of the calculation as to the price or value determined in accordance with records and documents evidencing the ruler must be kept as paper.
(4) Corporation, will apply in the transactions with related parties prices and costs, detects, using the most appropriate to the nature of the operations of the following methods:
a) Comparable Uncontrolled Price Method: The counterparts to the appropriate sales price that will apply to a taxpayer, comparable goods or services received or in any manner, including sale and the relationship refers to the natural or legal person without detection by comparison with the market price to be applied in transactions with each other.
B) cost-plus method: the appropriate arm's length price refers to the calculation by increasing gross profit as a reasonable proportion of the cost of related goods or services.
C) Resale price method: arm's length of the reasonable price, the transaction at issue, goods or services price them in any way be applied in case of resale to natural or legal persons which are not relations, refers to calculated by deducting a reasonable gross sales profit.
D) If any of the above methods with the possibility of reaching a reasonable price to arm's length taxpayers can use other methods to determine in accordance with the nature of their operations.
(5) methods for the related person with the goods or services received or to be applied in determining the price or cost of sales, on the request of the taxpayer determined in agreement with the Ministry of Finance. In this manner specified method is determined in the agreement not to exceed three years in duration and carries within accuracy requirements.

(6) completely or earnings distributed as covered partly through transfer pricing, the income and the corporate tax law enforcement, with the last day of the accounting period of the conditions in this article distributed dividends or the amount transferred to the main centers counted for limited taxpayers. Previously made taxable transactions, the taxpayers side which is adjusted accordingly. So far, that the taxes levied on behalf of disguised capital and institutions for making this adjustment are required to be paid.
(7) Transfer procedures related to pricing determined by the Council of Ministers. SECTION

Declaration Declaration
basis of Article 14 (1) Corporate tax is levied on the declaration of responsible taxpayers or tax. Declaration, which contains the results of the accounting period concerned.
(2) subject to any taxpayer gives a statement for the entire gain. However, for entities without public economic institutions and economic associations and enterprises of each of the foundations, associations and foundations separate statement issued by public entities with which they are connected.
(3) Corporate income tax return, accounting period from the close of the twenty-fifth day of the fourth month following the first day of the tax office where the taxpayer is bound up in the evening.
(4) Taxpayers of branches, agencies, trading offices and shops, to the mills or other businesses who depend on them, their independent accounting and allocated capital, though not even a separate declaration.
(5) subject to income tax cuts to be held in the Cooperative consists of real estate rental income, no declaration for these revenues.
(6) is connected to the taxpayers that the tax office is the organization's legal or tax office of the place where the business center.
(7) Ministry of Finance, the tax office to which they are connected to the taxpayers, is authorized to determine, regardless of their legal or business centers.
(8) Declaration of the form, content and attachments determined by the Ministry of Finance. Taxpayers do with this declaration or declarations shall notify in accordance with the written information in this declaration.
Tax deduction
Article 15 (1) Public administrations and institutions, public economic institutions, other institutions, trading companies, partnerships, associations, foundations, associations and economic enterprises, foundations, cooperatives, mutual fund managers, real income trade and freelancers who are obliged to declare, agricultural earnings account balance or agricultural enterprises on the basis of the farmers who identified; institutions advances including cash or account when they make the corporation with remuneration through the following payment must make cuts of 15% on account of tax:
a) Income Tax based on the principles of the law that works with who are dealing with more than one calendar year to the construction and repair works of with regard to progress payments made.
B) the letting of immovable belonging to the cooperative in exchange for rental payments made to them.
C) All types of bonds (mortgage finance companies and housing finance companies issued by mortgage capital market instruments, asset collateral, including marketable securities) and Housing Development Administration and the income obtained from the Privatization Administration issued securities and treasury bills interest rates (or denominated in foreign currencies currency, gold or revaluation that occurred during the amortization of other value-indexed securities will not be subject to cuts.).
D) deposit interest rates.
D) profit shares paid by participation banks in exchange for participation account.
E) Profit and loss sharing certificates equivalent to the dividend paid.
F) of paragraph (c) income obtained from the removal of obtaining or get back with the purchase or sale of securities in the commitment of place me.
(2) are distributed to organizations that are exempt from tax (included in capital Profit dividend distribution does not count.) Income Tax Law Article 75 of the second paragraph (1), (2) and (3) is out dividends in me, in accordance with the third paragraph of this Article except for the income subjected to withholding tax deduction of 15% tax rate is made.
(3) Except earnings of the pension funds, the Law Article 5 of the first paragraph of paragraph (d) of the written profits, whether distributed or not distributed, 15% tax deduction is made in the corporate.

(4) The Council of Ministers, the tax deduction rate specified in this article, each payment and up to separate zero for income, corporate income tax rate until the upgrade and according to the fund or partnership type for the income mentioned in paragraph within the same limits or in the portfolio it is authorized to differentiate according to the nature and distribution assets.
(5) which is required to withhold taxes in accordance with this Article, the taxes paid or accrued to do where as with the tax office to which they are attached, the month following the taxable period to the twentieth day of the evening withholding are obliged to notify the declaration. The principles and procedures set out in the Income Tax Act will be applied in accordance with this article about withholding returns. So far, the deductions made in accordance with the third paragraph of this article, institutions shall be declared by withholding tax return of the period during which the tax return.
(6) of this article in the last account statement, payments, deduction of earnings and shows the debtor has rights against those who pay the annuity refers to all records and transactions.
(7) Things to tax cuts on income and earnings are taken into account the gross amount. If the tax cuts should be undertaken by the payment of the tax cuts, the tax is calculated on the total installed with the payment amount.
(8) Tax withholding payments mentioned in this article, in the records and accounts also indicated that interruptions. Imposition of Tax PART

Taxation period and assessment Article 16 (1) taxation period in corporation tax, the accounting period. The taxation period of those who were appointed to their specific accounting period are special accounting period.
(2) the tax paid in by the interruption, the owners of remuneration also in cases not provided annual returns, the term of the related tax deductions deemed taxation year.
(3) The corporate income tax is levied by the tax authorities is given in return.
(4) Corporate taxes, on behalf of the legal entity of the taxpayer under this Act; public economic organizations and associations and foundations, public entities that are not bound to have a legal personality of the economic enterprises or associations or on behalf of the foundation; the name of the founder of fund of funds; In partnership administrator to make severally liable for the payment of the tax is levied on behalf of any of the partners or shareholders.
(5) Corporate tax day, given the declaration to the tax authorities affiliation, if sent by return mail, tax is levied within three days following the date when the apartment will be levied.


Liquidation, Merger, Acquisition, Split and Share Exchange

Liquidation Article 17 (1) Elimination period: Each whatever reason, the taxation of liquidation entered into corporate accounting period instead liquidation period is valid.
A) Liquidation of the institution starts on the date of registration of the General Assembly decision to enter liquidation liquidation decision and will end on the date of registration. Starting with the period until the end of the same calendar year from the date of this period to the next calendar year and the period leading up to the termination date of the liquidation of the beginning of the calendar year for the period of liquidation of the end shall be deemed an independent liquidation period.
B) Elimination of the start of the liquidation period, if the end of the calendar year, starts from the date of institution of liquidation to enter and will continue until the date on which the liquidation is complete.
C) The result of the liquidation case closure with loss of the liquidation, the right to be corrected before the liquidation period and will be returned to the taxpayer paid more in the period.
D) more than a year in bed timeout liquidation, the liquidation period starts from the end of the following year.
D) In ​​case of cancellation of the liquidation, the provisions do not apply for the institution. In such a case, the decision to give up the liquidation will be valid from the beginning of the period in which the decision. liquidation until the liquidation period from the date of the decision to forgo returns, replaces the normal operating returns. The temporary tax liabilities related to the liquidation of the essential institutions, including the date of receipt of the decision on the liquidation of abandoned temporary taxation period starts from the beginning.
(2) declaration of liquidation Liquidation statements, since the end of the liquidation period of the law by the liquidators in Article 14 shall in the period; liquidation of the liquidation statement for the period from the date of the end result of the liquidation are given to the tax office is connected to the organization within thirty days.

(3) the returns to be submitted under this Article, the balance sheet and the money distributed to shareholders by the liquidation balance sheet, income statement and a detailed list of other value added.
(4) Elimination of profits: the tax base of institutions in liquidation liquidation profit. Liquidation profit is the positive difference between the value of assets at the beginning of the period of the liquidation value of the assets at the end of the liquidation period.
A) Elimination of calculating the profit;
1) Common or organizations with an advance during liquidation or otherwise made any payments to the wealth value at the end of the liquidation,
2) current capital in addition to having been exempted from the and tax achieved during the liquidation of the payments made by shareholders or owners income and gains on the value of assets at the beginning of the liquidation period,
B) distributed shares to offset the public, sold, transferred or organizations that have a return when the value of economic assets, according to the Law Article 13 and the distribution, sale, determined as of the day of transfer or refund is made.
C) the calculation of the liquidation profit according to this article, Law 8, 9, 10 and Article 11 shall also be taken into account.
(5) Wealth value: The value of assets at the beginning and at the end of the liquidation period, the liquidation period at the beginning of the organization and is seen in the balance sheet equity at the end of that. For more than a year at the beginning of the liquidation value of the assets in the subsequent liquidation period it is seen in the previous period end balance sheet assets value.
(6) undistributed earnings with all kinds of provisions other than those listed below are included in the capital:
a) the technical provisions of insurance companies of all kinds are classified according to the tax laws, depreciation and provisions.
B) the portion of earnings will be distributed to shareholders or do not have one.
(7) The responsibility of Liquidators: Disposal officers, for tax and other contested assessments are calculated according to the institution's liquidation return to accrued taxes, 06.09.1932 dated 2004 on the Bankruptcy Act of the same without taking an appropriate response to the 207 Article during the fourth article 206 of the Law are unable to pay the creditor in writing and share to shareholders. Otherwise, the principal of these taxes and are personally and severally responsible for the tax penalty with time.
A) The principal of the tax will be levied as a result of examination of liquidation in accordance with the eighth paragraph in the aforementioned tax transactions and hikes, distribution during the liquidation, transfer, refund or sold as ways to it an economic asset transfer or liquidation made his share over the remaining can be searched from the public . tax that has been collected from the joint liquidators also does not apply to the originals.
B) Disposal officers, because of their actual taxes they pay this article in accordance with the same with the rates according to the economic value of the transferred or liquidated remaining the share of the shareholders or not sufficient to cover the value taxes taken by the joint Bankruptcy Law 207 Article itself in ways mentioned above Article 206 of the Act will be written during the fourth may have recourse to fully or partially charged by creditors.
(8) Examination of the liquidation process: liquidators, together with the administration of the winding up declaration, they want to be examined in terms of tax law with a petition process. after the submission of the petition at the latest within three months of the tax inspection is starting uninterrupted. As a result of the tax authorities within thirty days following the end of the tax inspection reports in writing to the liquidators. According to the results of the liquidators of the tax sought until receiving the institution continues writing responsibilities in the seventh paragraph.
(9) Ministry of Finance, the legal status of the taxpayer, taking into account the assets of the date of entry into their fields and operate liquidation is authorized to make investigations for liquidation.

Merger Article 18 (1) one or more other institutions with a dry merger, which was dissolved due to the force liquidation in terms of corporate mergers. However, instead of a profit combination in profit liquidation merger would tax base.
(2) The provisions on the determination of the liquidation profit, profit also applies in the assessment of the merger. So far, abolished the institution or institutions of the partner or directly or indirectly by the merged entity to have the value replaces the value distributed to shareholders upon liquidation of the institution. The values ​​from the merged entity are valued according to the principles written in the Tax Act.

(3) of Law liquidators of responsibility and duties according to Article 17, would unite the organization of the event the merger.
Transfer, separation and share exchange
Article 19- (1) For the purpose of this law is a provision that overthrew mergers under the following conditions:
a) the result of the merger the merged entity with institutions that dissolution of legal or business center in Turkey from .
B) abolished the institution's balance sheet value of the transfer date, the takeover by the merged entity as a whole and be passed on the same balance sheet.
(2) to change the type of institutions within the above conditions is the transfer provision.
(3) The following actions shall have the force division or exchange of shares:
a) Full divisions: full taxpayer capital company of all assets through to dissolution in liquidation, receivables and liabilities existing at cost value or newly established two or more resident capital company in exchange for the transfer and transferred the capital of the company be participating shares representing the capital of the transferee companies to go public, the division is full implementation of the provisions of this Act. The company transferred 10% of the payment in cash of much of the rest of the nominal value of shares to be given to public participation, the process does not interfere with the division to be counted.
B) partial division: resident capital company or capital company business in Turkey, where a foreign corporation in nature or permanent representatives of real estate located in the balance sheet of at least two full years of participation shares held or production or service they have operation of one or more of available capital over carrying value in kind to be established or resident to transfer to a capital company, is a partial implementation of the provisions of this Law division. However, the transfer of production or service operations, operational integrity must be transferred all of the assets and liabilities necessary to continue operations in order to protect them. Partial response division acquired the assets transferred to the transferee company's shares, may remain with the transferor company can also be given directly to the company's partners. The transfer of real estate and equity investments under this clause, if given to the transferee company's shares of the transferring company's shareholders, the transfer of the debt relating to the transferred real estate and equity investments are required.
C) Share exchange: resident of a capital company, the shares of another capital company, the company's management and the way takeovers and money to obtain a majority stake to the company's shares to disable public to give their participation shares representing the capital of their companies, shares in the implementation of this Act changes in the force. Shares of the company taken over much of the rest 10% to be paid in cash of the nominal value of shares to be given to public participation, the share exchange is not an obstacle to be counted.
(4) in the division will be made according to this article, the regulatory assets and liabilities accounts, accounts with the transferred assets or liabilities to which they relate.
(5) The Ministry of Finance speed, is authorized to determine the procedures related to division and stock exchange transactions.
Transfer, and the exchange of shares in case of division
taxation Article 20 (1) of the transfer, if the following conditions are complied with, abolished the institution is only taxed on the gains achieved by the transfer date; Gains from the merger is calculated and taxed:
a) the date on which the company is registered with the Registry of Commerce of the decision circuit board officials, it is the date of transfer. coupled with the institution abolished institutions;
1) institutions of will prepare and jointly they will sign abolished dry the date of transfer as the tax return,
2) takeover of the account until the end of the month of issue of the closing of the month, the corporate tax return on time if done in time, for the previous fiscal year the abolished agencies will prepare and sign a joint declaration that they abolished the institution of corporate income tax from the date of its publication in the Trade Registry Gazette
merger will give the tax office to which the abolished agency within thirty days.
B) the merged entity, abolished the institution's accrued, and will be fulfilled pay and other obligations of the tax liability abolished the institution to be given in the corporate income tax return, which will be due to the merger crop undertake a commitment. The largest property officer of the region may also want to guarantee the merged entity on this issue.

(2) of Law Article 19 of the third paragraph of (a) the division performed according to me, the gains are taxed at earned until only historical division abolished institutions by dividing the appreciation that the following conditions; The division is not calculated from the profits and not taxable:
a) the date on which the company was registered in the Trade Register on the decision of the competent committee of the division is the history of the division. Divided institutions and organizations inherit the assets of these institutions
1) to be prepared by the division date and collectively they will sign the divided organization of corporate tax return,
2) Split-off of the fiscal year the close of the month at the agency until the end of the month during which the tax return time in in case of dividing the organization to be prepared in relation to the previous fiscal year and jointly signed will divide corporate-owned corporation tax declaration,
division of the Trade Registry from the date of its publication in the Gazette give the tax office is connected to the divided institution within thirty days.
B) dividing the organization's assets to the transferee corporation, divided by the institutions of the division until the date that they will be jointly and severally liable in accrued and will be tax debt and will perform other assignments, divided institution that will be due to the division institutions undertake a commitment that they add to the tax return. The largest property officer of the region may require a guarantee from the agency takes over the assets of the institution divided by the institutions in this regard.
(3) of this Act of the third paragraph of Article 19 (b) and (c) Gains from transactions specified in paragraphs is calculated and taxed. Article 19, third paragraph (b) of the partial spin-off process carried out in accordance with subparagraph divided institutions division until the date of accrued and will be tax debt of dividing the organization's assets to the transferee corporation, the equivalent value of the assets taken over are responsible jointly and severally limited.


Payment of Tax Payment term
Article 21 (1) Corporate tax is paid until the end of the month during which the declaration.
(2) in liquidation and merger, liquidated or merged institutions on behalf of liquidation or merger profit over the levied taxes, owned by the organization which was dissolved due to the liquidation or merger institutions are paid within the period for filing the tax return. of liquidated or merged institutions are accrued under this Act, the tax have not yet paid at maturity over the same period.
(3) Law on the transfer and division performed according to the first and second paragraph of Article 20 of the accrued tax abolished on behalf of institutions;
A) of this paragraph of paragraph (a) of the number (1) in accordance with subparagraph abolished or dividend accrued on behalf of institutions taken over or merged institution to transfer or division of the organization until the end of the month during which the tax returns relating to the accounting period occurs,
b) in other cases the deadline for submission of the declaration, paid
transferee or merge the institutions.
(4) Income taxes reported by withholding tax return, the month during which the return is paid until the twenty sixth day of the evening. PART THREE

Actually narrow Liability Assessment and Payment of Tax Base Determination

SECTION net profit
Article 22 (1) of the nonresident institutions or permanent place of business in the determination of the gain obtained by the representative, unless the provisions are implemented fully applicable to taxpayers unless specified.
(2) for limited liability corporations subject to commercial or agricultural profits fall outside the income and gains of the Income Tax Act, the provisions relating to the determination of such income and gains. However, these gains are being made in Turkey and revenues are obtained in the context of commercial or agricultural activities, corporate income is determined in accordance with the first paragraph of this article.
(3) In determining the gain limited liability in the institution, and may not be accepted, the following discounts:
a) These institutions are trading on their account of the main centers or interest expense to branch outside Turkey, commissions and the like.
B) obtain gain institutions in Turkey and the related maintenance and will be determined in accordance with the arm's length principle in accordance with the distribution key separated by shares to institutions of control in Turkey, except for travel expenses of the authorized person is sent from foreign countries, the main center or Turkey shares allotted to participate in the general and administrative expenses or loss of branches outside.

(4) the implementation of the provisions contained in Article 12 of the Law for borrowing used in the business of nonresident institutions, partner-related person in terms of determining the capital or voting rights is not required.
(5) The provisions of the Act relating to the liquidation of the third paragraph of Article 19 (b) shall also apply to non-resident corporations with the same conditions. So far, the subsidiary shares issued in response to the values ​​inherited by the transferee corporation, is recorded in the assets of the business or permanent representative in Turkey.

Foreign transport institutions in corporate earnings determination Article 23 (1) Foreign transportation agencies corporate income tax base will be the average yield is calculated by applying the rate of precedent.
(2) Average rates precedent for all institutions as permanent employees or incidental in Turkey;
A) 12% in road transport,
b) 15% in maritime transport,
c) 5% in air transport, applied as
(3) commercial and incidental commercial gains limited tax liability within the scope of taxation of foreign transportation agencies, revenue is considered to be produced in Turkey consists of the following elements:
a) in road transport taking place within the borders of Turkey, including the provision expense taken in conjunction with the ticket price including passenger, cargo and baggage handling fee as the amount they receive, no matter whatever name.
B) transfer to the port of destination in foreign from loading port in Turkey country or to another institution of the ship will be in foreign held at the harbor, sea and air transportation, including provision expense taken in conjunction with the ticket fare passengers, as cargo and baggage handling charge whatever No matter the name on the amount they receive.
C) other institutions account for transportation activities outside of Turkey with passenger and luggage tickets they sell their freight contracts in Turkey in Turkey so they are given commissions and fees.


Declaration Declaration
basis of Article 24 (1) Corporate tax is levied on the declaration of responsible taxpayers or tax. Declaration, which contains the results of the accounting period concerned.
(2) subject to any taxpayer gives a statement for the entire gain.
(3) Taxpayers of branches, agencies, trading offices and shops, to the mills or other businesses who depend on them, their independent accounting and allocated capital, though not even a separate declaration.

Taxation period and declare Article 25 (1) of corporate taxation period taxed on the basis of the annual statement, the accounting period. However, particular accounting period is determined taxation period of those are special accounting period.
(2) the tax paid in by the interruption, the owners of remuneration also in cases not provided annual or special declaration periods of the related tax deductions, tax period is counted.
(3) of the Act taxable earnings reported in accordance with Article 26 of the statements, are based on the date of acquisition of earnings instead of the taxation period.
(4) The annual corporate income tax return, the institution of the place where the workplace or permanent representative in Turkey; Whether business or permanent representative in Turkey, if given to the tax office where foreigners are connected to the benefiting organization.
(5) Declaration of the accounting period the close of the fourth month following until the first day of the twenty-fifth day of dinner, if not left Turkey the respondent's assessment from leaving the country is given in the previous fortnight.
(6) Declaration of the form, content and attachments determined by the Ministry of Finance. Taxpayers do with this declaration or declarations shall notify in accordance with the written information in this declaration.
Special Declaration
Special declaration when determining when revenues
Article 26 (1) Narrow obligation to subject the subject to taxation of foreign corporate earnings Income Tax Act written other income and the gains (copyright, trademarks, ihtira, business, trade name, trademark and similar gayrimaddî rights to the sale, acquisition and excluding the amounts received in exchange for the assignment) consists if there is, foreign institutions or moving one on behalf of Turkey, from the date of obtaining the gain of the act within fifteen days 27 in article It must notify the declaration referred to the tax office.

(2) Other gains and except for the provisions concerning the exchange difference gain occurred during the disposal of equity investments and securities acquired in exchange for personally brought in cash or in kind capital into Turkey in relation to revenues, with the exception of the Income Tax Law is located in taxation to respect, record, are not taken into account the conditions and time restrictions. The administration place

Declaration Article 27 (1) corporate income tax return concerning income shall be determined when the special declaration;
A) Other gains arising from the disposal of immovable property and revenues of the immovable property,
b) movable assets and rights from the disposal of its other income and gains on assets and rights of disposal in Turkey is removed,
c) commercial or agricultural the enterprise suspension of activities or abandonment obtained in exchange for the other income and no business in annuities,
d) incidental as the performance of commercial transactions or with the gains obtained from through the process of this nature accidentaly made as self-employed activities therefore is made active in profits from,
d) INCIDENTAL in Turkey and foreign countries made between transport operations in earnings derived from passengers or cargo taken on vehicle,
e) Loss written other earnings that are subsequently achieved with regard to abandoned business, including the collection of doubtful receivables divided by uncollectible receivables and revenues the commercial, agricultural or professional activity ever undertaken failure or tender, increase and obtained in exchange for the participation to decrease other income and gains in payment is made in Turkey
f) other cases determined by the Ministry of Finance, given the
where the tax office. PART FOUR

About border of Assessment and Payment of Tax counterpart, bed time and place
beds ARTICLE 28 (1) of limited liability to tax is subject to foreign institutions, their account manager or representative in Turkey; If the manager does not exist or representatives of earnings and revenues are levied on behalf of the foreign institution providing.
(2) Corporate tax day, given the declaration to the tax office, return mail is sent by tax date of the apartment will be imposed is given following the declaration within three days or the tax was sent office when levied.

Payment period Article 29 (1) in limited liability corporation tax;
A) until the end of the month during which the declaration those reported in the annual declaration
b) Withholding of the month during which the declaration those reported by declaration to the twenty sixth day of the evening,
c) to leave Turkey the respondent's assessment with special declarations theme notified who or liquidation and in return will be given if the merger cases during the period of making the declaration,
Tax Deduction and Withholding Tax Return tax cuts in
limited liability
Article 30 (1) on the following income and gains of limited liability subjected institutions in cash earnings and including annuities advances or account pays or is made of 15% corporate tax deduction by those who accrue:
a) Income tax based on the principles of the law more than one calendar year to the construction and repair works dealing with institutions to progress payments made in connection with this work.
B) self-employment earnings.
C) Real estate capital gains.
D) of the Income Tax Law of the second paragraph of Article 75 (1), (2), (3) and (4), capital gains, except those listed in paragraph.
(2) commercial or agricultural earnings included regardless of whether copyright, trademarks, patent, management, trade name, trademark and similar gayrimaddî rights of the sale, transfer and cash in exchange for the assignment or on account paid or mentioned in the first paragraph of this article over costs accrued persons 15% corporate tax deduction is made.
(3) by resident corporations, a place of business in Turkey or permanent representative, except those who earn dividends through the non-resident corporations or corporations that are distributed to the taxpayer exempt from tax (included in capital Profit dividend distribution does not count.) And Income tax Law Article 75 of paragraph (1), (2) and (3) subparagraph the mentioned dividends on the Law of the 15th corporate rate of 15%, except for the income subjected to withholding tax in accordance with the third paragraph of Article tax deduction is made.

(4) Law Article 5 of the first paragraph of paragraph (c) of the gains to be exempt from corporation tax specified in paragraph (c) specified in the company of (b) of dividend income with the requirements in Article corporation or limited company will be made from the dividends distributed to non-resident corporations in the nature deduction rate this It can not exceed half the rate applied in accordance with the third paragraph of Article.
(5) place of business in Turkey and the permanent representative are not taxpayers, they opened the exhibition and fair with the permission of the competent authorities on the profits they earn from commercial activities, 15% corporate tax in the corporate deduction is made.
(6) Annual or special declaration that the non-resident institutions, deductions and exemptions from previous corporate income without deduction, after calculating the corporate income tax deduction for the amount they transfer the remaining parts of the main centers, 15% corporate tax in the corporate deduction is made.
(7) of the earnings of the country the tax system is obtained, the Turkish tax system created by the tax capacity with the same level of taxation that is providing opportunities and information exchange in respect of the consideration by the Council of Ministers declared that the country is built or operating in the institutions (resident institutions including business locations in countries of that nature) in cash or account with or through any payment accrued, these payments entered on the subject of taxes, or that payment will be made 30% tax deduction regardless of whether it is the taxpayer made institutions.
A) precedent to the payments for purchased goods and equity investments at reasonable prices, without precedent to the reasonable prices, sea and air transportation for hire of the car payment with the work done in terms of completion must supply that toll, the deduction rate will be made on payments such as port fees; each payment type, sector of activity or to identify separately as of Ministers to bring up the download or legal level of Directors is authorized to zero.
B) the principal amount on the loan obtained from financial institutions abroad, interest and dividend payments for the insurance and reinsurance payments through the tax deduction will be made pursuant to this paragraph.
C) payments are subjected to withholding tax in accordance with this paragraph, according to the Income and Corporation Tax Law also not be subject to withholding tax.
(8) The Council of Ministers the above paragraph in the specified tax deduction rates, revenue elements or fields or as of the separate determination of the rate specified in the download or the above paragraph to zero is authorized to increase up to a solid.
(9) According to this article of the Law for the income and gains received by tax cuts 24 or Article 26 of the given declaration in accordance with, or those that are not substances covered earnings and said profit in the declarations submitted for revenues and is voluntary inclusion of revenues. So far, the Income Tax Law Article 75 of the second paragraph (5), (7) and (14) the number must be included in the declarations submitted by the profit of shareholders be obtained from the documents participate in the fund with capital gains in me, and shares of investment trusts.
(10) in this Article, the payment account statement showing earnings and deduction against the debtor pays those eligible annuity refers to all kinds of records and procedures.
(11) Things to tax cuts on income and earnings are taken into account through gross amount. If the tax cuts should be undertaken by the payment of the tax cuts, the tax is calculated on the total installed with the payment amount actually paid.
(12) Tax deduction that according to this law, the tax cuts they make the records and accounts also show.
Concise statement
Article 31 of Law Article 30 of which have to do tax cuts, in accordance with the tax withholding on payments or taxes they are connected as where accrual was made circle must report the return. Set out in the Income Tax Act on withholding tax procedures and principles will be applied in accordance with this article about withholding returns. PART FOUR Common Provisions

Provisional Articles and corporate income tax and provisional tax rate
Article 32 (1) corporate income tax, corporate income is received by over 20%.

(2) Corporate taxpayers (in the narrow obligation to subject the institutions as limited commercial and agricultural profits) czar paid taxable year institutions to be deducted from tax revenue according to the principles specified in the Tax Act and the Tsar period, the corporate tax rate of corporate tax. the principles applicable to entities with full liability, also applies to taxpayers.
(3) The Council of Ministers, the written tax rate in the second paragraph of downloading up to 5 points or authorized to bring up again the legal level.
(4) of Law 23 third taxed according to Article provided there is reciprocity in the tax rate on foreign transport organizations, as the country's land, sea and air transport agency to individually or collectively zero until download or a new rate to exceed a solid written rate this article the Council of Ministers is authorized to determine. deduction of tax paid outside
Article 33 (1) were obtained in foreign countries generally result accounts transferred to be the corporation tax paid on the spot from gains in Turkey and similar taxes are deductible from corporate tax levied on these earnings in Turkey.
(2) In cases where the application of the Law Article 7, the income is paid to affiliates abroad and corporate income tax and similar taxes are institutions in calculating the gain will be taxed at a controlled foreign company in Turkey can be deducted from taxes.
(3) full taxpayer directly or indirectly in the capital or voting rights on dividends earned from foreign subsidiaries owned 25% from the corporation tax paid in Turkey, is paid out of profits which sources the distribution of dividends in the country where the subsidiary is located and part of corporate dividend corresponding to the amount of tax so the tax can be deducted. added dividend earnings income paid abroad on those gains and corporate taxes are considered to be included by other taxes.
(4) abroad through the income amount that can be deducted for tax to be levied in Turkey, no institution referred to in Article 32 of the Law on earnings obtained a copy of the abroad no more than the amount to be found in the application of the tax rate. Within this limit, the accounting period is reflected in the income account in Turkey's general conclusions about which is wholly or partly deductible taxes, the period of the third fiscal year following deductions can be made until the end.
(5) in the event that revenues from abroad in temporary taxation period, the tax paid in the interruption or the other way countries are obtained through these revenues, it can be deducted from the temporary tax amount calculated for the period. amount to be deducted, pursuant to profits obtained abroad will amount to no more than the application of the tax rate specified in Article 32.
(6) in foreign countries tax is paid, the Turkish embassy or consulate of the scene taken from the competent authority, or the scene of Turkish interests of protecting the country by olunmadık proving with documents that will be endorsed by representatives of the same nature, foreign countries paid tax can not be deducted from the tax levied in Turkey.
(7) Institutions shows that paid in the foreign country of the taxes subject to deduction of tax documents, fails to be submitted by the taxpayer during the tax assessment, paid in a foreign country or pay the taxes, the Law Article 32 not exceed the tax rate is calculated that at the current rate in the country and the assessment is postponed to the part corresponding to the amount calculated in this way. The documents required to be submitted, at the latest from the date of imposition, if it is submitted to the relevant tax office within a year, according to a written assessment corrected certain amounts in these documents.
(8) the documents without force majeure to be presented during this time or the deferred tax amount after the submission of these documents in understanding that the right to a lower deduction, according to the Public Receivables for deferred taxes on Collection Procedure Law, overdue interest is calculated.
(9) in the implementation of this provision, the tax paid in foreign currency, the exchange during the succession to their respective general account of the earnings results found.
Deduction of withholding tax in the country

Article 34 (1) of the profit shown in the Declaration of Law Article 15 of the first paragraph and Article 30 Taxes cut in resources compared to the first and second paragraph of (life derived from the investment of mathematical reserves of insurance companies, including earnings and deductions from revenues on) institutions are deducted from the tax calculated on the declaration.
(2) Article 15 of the Law of the institutions dividends from corporate income tax cuts made by the third paragraph, they can offset the cuts contained in the dividends they receive. the amount to be deducted, the net profit margin of uncovered calculated by using the effective deduction rate grossed up.
(3) tax withheld in accordance with the seventh paragraph of controlled foreign corporations Payments made under the Law Article 30 on, these companies will be calculated based on the income of the institution, including the declaration of Turkey institution can be deducted from taxes. However, tax will be deducted from the controlled foreign corporation can not exceed the corporate tax corresponding to the income from these payments.
(4) in the event that the tax paid by tax cuts on income obtained in the temporary taxation period, it can be deducted from the amount calculated for the period of provisional tax. The institutions calculating the annual corporate tax return only paid part of the temporary tax accrued for the relevant accounting period shall be deducted from taxes.
(5) tax to be deducted within the limits specified in this Article may, if it is more than the tax calculated on the corporate tax return, the tax office will be notified in writing to the taxpayer. The difference from the date of receipt of the said article of the taxpayer shall be returned to him if the application within a year. The receivables arising from the difference of taxpayers who apply within a year drops.
(6) Ministry of Finance; or to make a cash refund offset, inspection report, for chartered financial consultant reports or collateral to mount and the return is authorized to determine the documents to be sought. This authorization; Earnings species, returning forms, revenue or the payment of which can be used separately according to legal status.
(7) The balance of the extradition proceedings, provided that the completion of all the documents sought, year institutions are made as of the date of the tax return. Supply or ex officio offsetting transactions made in the assessment, complete the application and attachments relating to set-off claims are made on the basis of the date of entry to the tax records. In terms of collections made in completing the documents sought correction.
(8) Law Article 5 of the first paragraph (d) referred to in subparagraph funds and partnerships, while obtaining the same paragraph in the gains, Article 15 in accordance with the tax deducted from them by law, provided that they paid the tax deduction by those who have the relevant tax authority of the Law according to the third paragraph of Article 15, they can deduct from their tax cuts made within the organization. The amount of the deduction taxpayers can not be deducted if the application is rejected and returned.
Exemption limit of exemptions and discounts
Article 35 (1) exemption in other laws, provisions relating to the exemptions and reductions, corporate tax is invalid terms.
(2) The corporate tax exemption related to, provisions for exemptions and discounts, but this Act, shall be added to the Income Tax Act and the Tax Act or by making changes in these laws regulated.
(3) The provisions of international treaties are reserved.

Removed provisions of the current Article 36 dated 03.06.1949 and numbered 5422 has been repealed Corporation Tax Act with supplements and amendments.
PROVISIONAL ARTICLE 1- (1) in accordance with this Law shall be subject to the tax cuts over the income and afflicted, Income Tax Law, in accordance with Article 94 also cuts will be made.
(2) of the Income Tax Law temporary Article 67 subjected to the tax cuts over the income and in accordance with further cuts will be made in accordance with this Law. corporate tax cuts are made in accordance with the provisions of Article 34 within the framework of the aforementioned substances may be deducted from tax. In so far; The said article (2) and (3) of the tax paid by deduction under subsection, the process gains from the subject that withholding rate by multiplying the result of the excess amount will not be deducted from the tax calculated on the annual tax return.

(3) the nonresident institutions obtained without the mediation of work places attributable to smoking or permanent representatives in Turkey and the Income Tax Law of the provisional Article 67 of the scope of cuts made gains to belong to entities with full liability of these institutions Istanbul Stock Exchange saw in operation and more than a year long obtained obtained from the disposal of held shares and provisional Article 67 of the (1) subject to withholding tax under the sixth paragraph of paragraph unpopular earnings and the institutions of the permanent representatives of all they have achieved through subjected to withholding tax under the temporary Article 67 will not be annual or special return to profit .
(4) This Law granted powers until receiving a new decision by the Council of Ministers within the framework of No. 193, Income Tax Act and the 5422 Law No. context of tax rates and other matters to be published in the Council of Ministers regulations contained in decisions related to exceed the legal limits set forth in this Law to remain valid.
(5) other laws to which references made to Law No. 5422, as the item is deemed to be made about this law.
(6) them special account of the period designated for the taxation of corporate profits for the fiscal year ending in calendar year 2006; 1/1/2006 Since 30% of the previous month, while the rate applied to the next month calculated taking into account the arithmetic average of 20%. In this calculation, the ratio fractions ignored.
(7) This law is published before the date to the beginning full taxpayer capital company split transaction of the same nature in foreign institutions, to complete the partial demerger process within three months from the date of publication of the Law on Commercial Register to register the Gazette and subject to change in the side of the division process 5422 Law no provision can benefit.
(8) of this Act until the end of 2006, the first paragraph of Article 4 (k) exemption of cooperative structures can not provide me with written conditions be deemed to have ended as of 1/1/2006.
(9) of this Act in relation to other laws in the exemption before the effective corporate tax, exemptions and discounts in terms of Article 35 shall not apply.
(10) the entry into force of this Act shall continue the implementation of the Law No. 5422 as of prior periods.
(11) calculated from 1.1.2006 by 30% in the next temporary tax period and charged to temporary tax aforementioned period for the portion exceeding the amount calculated in accordance with this Act, shall be deducted from tax returns for subsequent periods.

Enforcement Article 37 (1) of this Act;
A) of Article 5 of the first paragraph (e) On subparagraph publication,
b) of Article 7 to be applied to profits derived from 1/1/2006 and the date of publication, to be effective from 1.1.2006,
c) of Article 12 from the date after the date of 1/1/2006 to 1/1/2006 to apply to hanging loan transaction and the date of publication, to be effective,
d) of Article 13 and 35 of the 1/1/2007 ,
d) the first paragraph of Article 32, to apply to taxable periods beginning from 1.1.2006 and 1.1.2006 from the date of publication, to be effective,
e) Other provisions as of 1/1/2006 to be effective from the date of publication, it enters into force

Execution ARTICLE 38- (1) This Law shall be enforced by the Council of Ministers.