Practice Area
Tax Law
Vergi Hukuku
Turkish tax counsel for foreign investors, residents, and citizens.
Scope of the Practice
Tax Law (Vergi Hukuku) at Turak Law covers the Turkish tax exposure of cross-border clients: income tax, capital gains, VAT (Katma Değer Vergisi, KDV), withholding tax, customs duty, and the procedural law that governs tax assessment and dispute. The principal statutes are the Tax Procedure Law (Vergi Usul Kanunu) No. 213, the Income Tax Law (Gelir Vergisi Kanunu) No. 193, the Corporate Income Tax Law (Kurumlar Vergisi Kanunu) No. 5520, and the Value Added Tax Law (Katma Değer Vergisi Kanunu) No. 3065. The Revenue Administration (Gelir İdaresi Başkanlığı, GİB) is the principal counterparty.
The pillar intersects CBI files at multiple points: KDV İstisnası Madde 13/i exemption screening for every W02 real estate file (a potential USD 80,000 saving on a USD 400,000 property when conditions are met); tax residency determination at and after Step 13; double-taxation treaty positioning for clients with cross-border income; capital gains structuring at exit. The pillar also serves clients on pre-CBI tax questions (source-of-funds documentation, repatriation timing, declaration positions) and post-CBI matters (Turkish tax exposure on rental income through the W02 hold, capital gains at exit Month 36).
Specific Services
Income tax counsel
Individual income (Law No. 193) and corporate income (Law No. 5520) for cross-border clients.
Capital gains structuring
Treatment of gains on Turkish-sited assets; treaty positions for non-residents; holding-period analysis.
KDV exemption screening
Article 13/i first-delivery VAT exemption for foreign real estate buyers under VAT Law No. 3065; documentation packaging for the Vergi Dairesi.
Double-taxation treaty application
Treaty positioning across Türkiye's 87+ bilateral treaties; relief claims and reduced-withholding filings.
Tax residency determinations
The 183-day rule and effective-place-of-management analysis under Turkish tax law.
Transfer pricing
Cross-border related-party transactions; documentation and benchmarking under Article 13 of Corporate Income Tax Law.
Tax dispute resolution
Vergi Dairesi audits, assessment challenges, Tax Court (Vergi Mahkemesi) proceedings, appellate matters.
Customs duty matters
Import-export classification, valuation challenges, customs disputes under Customs Law No. 4458.
Statutory Authority
Principal statutes: Tax Procedure Law (Vergi Usul Kanunu) No. 213 (the procedural framework, assessment, audit, dispute); the Income Tax Law (Gelir Vergisi Kanunu) No. 193 (individual income); the Corporate Income Tax Law (Kurumlar Vergisi Kanunu) No. 5520 (corporate income); the VAT Law (Katma Değer Vergisi Kanunu) No. 3065 (KDV including the Article 13/i foreign-buyer exemption); the Customs Law (Gümrük Kanunu) No. 4458 (import-export duties). Türkiye is signatory to 87+ bilateral double-taxation treaties whose application is governed by Article 90 of the Constitution (ratified international agreements have the force of law and prevail over conflicting statute).
Cross-Border Considerations
Turkish tax residency (Vergi İkametgâhı) is triggered by physical presence in Türkiye for more than 183 days in a calendar year, not by citizenship. Most CBI clients remain non-resident for Turkish tax purposes after acquiring citizenship; their foreign-source income is not Turkish-taxable. Turkish-source income (rental income, capital gains on Turkish property, dividends from Turkish companies) remains taxable at the Turkish source regardless of residence, with treaty credits where applicable. US persons receive a separate note: acquiring Turkish citizenship does not discharge US tax obligations to the IRS. The 87+ double-taxation treaty network is used to coordinate treatment across jurisdictions. It is particularly relevant for rental income, dividend flows, and capital gains on property exit.
Discuss your matter
Request an initial consultation to have the legal position of your matter assessed. The consultation is available in nine languages.