Accounting Rules

Tax Year: The tax year begins on 1 January and finishes on 31 December of the same year.
Accounting Standards: Since the control of accounts has no longer been totally under government influence, account certification has been carried out in agreement with the " Turkish Code of Commerce".
The results obtained have to be sent to the Ministry of Finance.
Public companies must comply with the accounting principles and standards of the capital market board which are generally in line with IFRS.
Accounting Regulation Bodies: BDDK
Organization of Turkish accounting standards
Accounting Reports: The accounting structure includes:
- Consolidated Balance Sheet
- Assets
- Floating Assets (liquid assets; Treasury bonds; short term investments; receivables; stocks; other floating assets)
- Total Floating Assets
- Fixed assets
- commercial receivables
Publication Requirements: The balance sheet and the profit and loss account must be expressed in Turkish currency and drawn up in a clear, complete and easily understandable way quarterly and annually (annual accounting balance sheet).
Professional Accountancy Bodies: Expert Accountants' Association of Turkey
TÜRMOB , Union of Chambers of Certified Public Accountants of Turkey.
Certification and Auditing: Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact audit companies:
- Mazars Denge
- Pricewaterhouse Coopers
Accounting News: Turkish accounting news
EIN News on Turkey

Tax Rates

Consumption Taxes

Nature of the Tax: KDV: Katki Deger Vergisi (= Value added tax)
Tax Rate: Standard rate of 18%.
Reduced Tax Rate: There are reduced rates of 8% which is applicable to basic foodstuff, pharmaceutical products and other items; and 1% for journals, newspapers, certain farm products. Also, certain supplies are VAT exempt in Turkey.
Other Consumption Taxes: OTV (Özel Tüketim Vergisi = Special consumption tax) concerns petroleum products, vehicles, tobacco, alcohol, sodas and luxury products.

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Corporate Taxes

Company Tax: 0.2
Tax Rate For Foreign Companies: Turkish companies are taxed on their global income, while companies whose headquarters and "effective management" are abroad are only taxed on their income in Turkey. For additional information access the Invest in Turkey website (in english).
Capital Gains Taxation: Long term capital gains are taxed in Turkey at the normal corporate income tax rate.
Main Allowable Deductions and Tax Credit: 40% of expenses for research and development inside a company are deductible from the tax base. For further details on company tax deduction, consult the Revenue Administration.
Other Corporate Taxes: For further information on company other taxes, consult the Revenue Administration.

Individual Taxes

Tax Rate

Income tax rate	Progressive, from 15% to 35%
From YTL 0 to 8,700	15%
From YTL 8,701 to 22,000	20%
From YTL 22,001 to 50,000	27%
Over YTL 50,000	35%

Allowable Deductions and Tax Credit: The set annual deduction must not go over 35% of the salary. There are other deductions which depend on each person's status (marriage, dependent children, etc.).
Special Expatriate Tax Regime: There is no specific additional tax for expats, but an equal treatment between locals and expats.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: YASED
Withholding Taxes: Dividends: 15%, Interest: 0% for "financial entities" / 10% (interest on loan for nonresidents), Royalties: 20%

Sources of Fiscal Information

Tax Authorities: Fiscal administration
Other Domestic Resources: Inland Revenue Administration

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Intellectual Property

National Organizations: Turkey is adapting the legal framework of industrial property to the directives of the EU. The main advances in this domain are the creation of the Turkish Patents Institute (TPI), the introduction of a regime of penal sanctions and the updating of the Law on Trademarks through a series of decrees.
Regional Organizations: For the protection of patents: the European Patents Office.
International Membership: Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent The decree Law No. 551	20 years maximum	Patent Cooperation Treaty (PCT)
Trademark Trademarks Law 1995 / Decree Law N° 556	10 years	Trademark Law Treaty Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design Industrial Design Law 1995 / Decree Law N° 554	10 years, renewable once
Copyright Copyright Law 1995/	During the life of the author and until 70 years after his death	Berne convention For the Protection of Literary and Artistic Works Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Copyright Treaty WIPO Performances and Phonograms Treaty
Industrial Models Industrial Design Law 1995 / Decree Law N° 554	10 years

Legal Framework

Independence of Justice: Turkish constitution guarantees independent judicial power.
Equal Treatment of Nationals and Foreigners: Turkey is practically a constitutional State and reforms are introduced where necessary with a view to joining the European Union. Foreign nationals can in principle expect to benefit from an impartial trial in judicial matters. Corruption is a big problem and it exists in all domains. The government is introducing laws to fight it, but they are not implemented severely enough. In general, there is a certain culture of tolerance towards corruption among the population.
The Language of Justice: Turkish
Recourse to an Interpreter: Possible
Sources of the Law and Legal Similarities: The main source of the law is the constitution of 1982. The country's judicial system is based on a system of civil law derived from different systems in continental Europe:
- Civil and company law close to the German model
- Law of obligations inspired by the Swiss code
- Penal law inspired by the Italian Penal Code
- Administrative Law inspired by that of France

Turkey is a member of the European Court of Human Rights (ECHR).
Checking National Laws Online: Constitutional Council
Law on-line

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Standards

National Standards Organizations: Turkish Stardards Institution
Integration in the International Standards Network: - Member of ISO (International Standard organization)
- Member of IEC (International Electrotechnical Commission)
Classification of Standards: TSE is the national certification marking.
CE is the European certification marking.
Online Consultation of Standards: TSE
Certification Organizations: TSE
AFNOR

Business Practices

General Information: CODA, Business Development Council
Opening Hours and Days: Banks are open from 8.30 am to 12 noon and from 1.30 pm to 5.30 pm Monday to Friday.
Public administrations: from 8.30 am to 12.30 pm and from 1.30 pm to 5.00 pm Monday to Friday.
Shops: from 9.00 am to 7.30 pm from Monday to Saturday and the few shopping malls from 10.00 am to 10.00 pm, 7/7.

In some Aegean and Mediterranean regions, public administrations and some establishments close in the afternoon during the summer season. These opening hours are fixed every year by the Provincial Governors.

Public Holidays

New Year's Day (Yilbasi)	1 January
Children's Day (Çocuk Bayrami)	23 April
Youth and Sports Day (Gençlik Bayrami)	19 May
Victory Day (Zafer Bayrami)	30 August
Republic Day (Cumhuriyet Bayrami)	29 October
Festival of the Sacrifice (Kurban Bayrami)	November - December
Ramadan	Change every year

Periods When Companies Usually Close

Cf. above

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Turkey: Business Environment