A foreign investor who is interested in doing business in Turkey should know that he can reduce the amount paid for taxes through legal means, known as tax minimization methods. These can be applied in every country and the results are sometimes above expectations, if an experienced lawyer or accountant is handling your business.
You can legally reduce the amount of taxes your company has to pay to the Turkish authorities using certain financial strategies.
If you are interested in finding out useful strategies for tax minimization for your company, you may contact a Turkish attorney or accountant who will present you a detailed plan tailored to your business’ needs.
One of the methods of tax minimization in Turkey is donation in cash or assets of your company, so you can benefit from tax deductions. Other methods are paying in advance the interest for the company’s loans, increasing the contributions for the retirement plans and invest a large part of the income. All you need is a good tax adviser who can find also other ways for minimizing the taxes you pay for your business in Turkey. The tax advisor will also help you authenticate the company budget.
Turkey has two major taxes – direct and indirect and both are very important when you make the budget for your company. The direct taxes are the income tax, paid by the individuals, and the corporate tax calculated on the income of a company and regulated by the Corporation Tax Law that came into force in 1949 and it is inspired by the German laws regarding taxation. The corporate tax must be paid by Turkish companies, cooperatives, public and private enterprises, joint ventures.
The companies registered in Turkey must also pay indirect taxes and the most important of these is VAT. Some investors are exempt for paying VAT and if you are interested in finding out if you meet the criteria for this benefit, you may contact our Turkish tax attorneys.
Other indirect taxes that must be paid in Turkey are those for properties, vehicles, banking transactions, communication, customs duty etc.
For more details about the tax minimization, the local and foreign entrepreneurs may contact our law firm in Turkey specialized in financial assistance for businessmen.