If any condition is not met, the transaction may be taxed like a liquidation or sale. In partial divisions, conditions such as the separated assets qualifying as a business or a shareholding need particular attention.
Source: 5520 sayılı Kurumlar Vergisi Kanunu md. 19-20
Related terms
Mergers and acquisitions (M&A)The general term for mergers of companies and for one company acquiring or disposing of another company or business line.Liquidation (tax)The tax aspects of winding up a company, realising its assets, paying its debts and distributing the remainder to shareholders.Loss carryforwardDeducting tax losses incurred in prior years from taxable corporate income of subsequent years.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: November 8, 2026 · This definition is for general information only.