For individuals, residence in Turkey creates full liability; for companies, having the registered office or place of effective management in Turkey does. For payments to non-residents, withholding tax and double tax treaties are considered together.
Source: 193 sayılı GVK m. 3-6, 5520 sayılı KVK m. 3
Related terms
Double tax treatyAn international agreement between two countries that allocates taxing rights to prevent the same income being taxed in both.Withholding taxPersons and entities making certain payments withholding tax at the time of payment and paying it to the tax office on behalf of the recipient.Transfer pricingThe pricing of goods, services and financing transactions between related persons; tax legislation requires these prices to be at arm's length.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Advance tax rulingA written explanation issued by the tax administration upon a taxpayer's written request about its own tax position or matters it considers unclear.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.
Last updated: October 31, 2026 · This definition is for general information only.