Tax Law

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 Turkey'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

Cross-Border Considerations

Turkish tax residency (Vergi İkametgâhı) is triggered by physical presence in Turkey 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 — particularly relevant for rental income, dividend flows, and capital gains on property exit.