Tax Structuring & Wealth Management

Turkish Tax Framework

Turkey’s tax system is administered by the Revenue Administration (Gelir Idaresi Baskanligi, GIB) under the Ministry of Treasury and Finance. The principal direct taxes are corporate income tax, personal income tax, and withholding taxes on various categories of income. Indirect taxes include value-added tax (VAT, with standard and reduced rates, together with exemptions and special regimes), special consumption tax (OTV), and stamp tax on certain documents and transactions.

We advise businesses and individuals on tax planning within this framework, with a focus on structuring investments and operations through tax-efficient and compliant structures while maintaining full compliance with Turkish tax law and international reporting obligations.

Corporate Tax Planning

Corporate tax planning in Turkey involves careful attention to the interaction between domestic tax law and Turkey’s extensive double tax treaty network. Turkey has concluded tax treaties with many jurisdictions, each with different provisions regarding withholding rates on dividends, interest, and royalties, as well as permanent establishment definitions and capital gains treatment.

We advise multinational companies on the tax structuring of their Turkish operations, including the choice of legal entity, capitalisation structure (debt vs. equity), intercompany pricing, and repatriation of profits. We advise on legal aspects of transfer pricing arrangements and coordinate with tax advisors where documentation, calculations, or filings are required.

Tax Incentives

Turkey offers several investment incentive regimes, including reduced corporate tax treatment, VAT exemptions, customs duty exemptions, and employer social security contribution support. The scope of available incentives depends on the sector, the investment location, and the size of the investment. Strategic investments, investments in designated development zones, and technology development zone (Teknokent) operations each carry distinct benefits. We advise on eligibility, application procedures, and compliance with incentive conditions.

Wealth Management and Estate Planning

For high-net-worth individuals with assets or interests in Turkey, we advise on the tax implications of Turkish tax residency, real property ownership, financial investments, and succession planning. Cross-border succession involving Turkish assets requires coordination between Turkish inheritance law and the applicable foreign succession rules.

We work with clients’ existing wealth advisors and international tax counsel to develop structures that address Turkish tax obligations while remaining consistent with the client’s overall private wealth structuring strategy.

Tax Disputes

Tax disputes in Turkey may be resolved through administrative reconciliation (uzlasma) with the tax authority or through litigation before the Tax Courts. The reconciliation process offers the advantage of speed and potential penalty reduction, but requires careful preparation and negotiation. Where reconciliation is not available or unsuccessful, we represent clients before the Tax Courts, Regional Administrative Courts, and the Council of State (Danistay). We also advise on voluntary disclosure programmes and tax amnesty opportunities as they become available.