Blue Sky Productions Muğla Fethiye Düğün Fotoğrafçısı - CORPORATE LAWS -

3 Important reason to book with a Legally Registered Wedding Photographer in Turkey


Turkish goverment has become very strict with non registered business owners. Goverment also have strong enforcements for whom trading without registering their business.

1) If you booked your Wedding photographer recently please check and make sure they are a registered company and tax payer.(Please ask them their Registration number) if you need help We can also make the necessary checks for you to make sure they are a reliable and legally registered company.

2) If unregistered photographer get caught by the goverment officer you may end up with no photographer to take your wedding photograps. (You may be able take your deposit back)

3) Unfortunatly most of the wedding photographers in Oludeniz/Fethiye are not legally registered. We advice not to risk your wedding photography session by one of them.


Requirements for Starting a Business

In Turkey once a company has been established it must be registered at the tax office; this is done by the registry office. The registry office also notifies the district employment office of the establishment of the company, and organises its announcement in the Commercial Registration Gazette within approximately ten days of it being registered.

Once the tax office has been informed of the company’s formation a tax plaque must be obtained from it. The registry office also gives notification to the Ministry of Labour and Social Security. A social security number should then be obtained from the relevant Social Security Administration office and all employees registered with it. It is advisable to confirm that both the tax office and social security have received notification of the formation of the company.


Documents for the Company Establishment

A company establishment petition and a notification form, duly filled in and signed by persons authorized to represent the company. The list of the documents to be procured, and forms to be filled can be downloaded at and

Letter of Undertaking (Trade Registry Regulation Article 24)

Articles of association including notarized signatures of founders and notary certification proving that all shares constituting the registered capital have been subscribed by the founders in the articles of association

Founders’ statement signed by the founders

The bank letter proving that the share capital has been deposited

The bank receipt indicating that 0.04% of the company capital has been deposited to the account of the Turkish Competition Authority at a state bank

Permit or letter of compliance for companies whose corporation is subject to the permit or letter of compliance issued by the relevant ministry or other official institutions

Notarized copy of signatures of persons with the authority to represent and bind the company

Application number indicating that the trade name to be used has been checked and confirmed by the Trade Registry Office Company establishment statement form (3 original copies)Certificate of residence of founding partners

Residents are fully liable under the Turkish tax system: that is, they pay taxes based on their worldwide income. Non-residents have limited liability and are subject to tax on their business earnings derived in Turkey.

Corporations have full liability to Turkish taxation if their legal headquarters or business centres are in Turkey. Business centre is defined as a place where business transactions are concentrated or carried out. All companies established in Turkey with foreign capital have full liability. If a foreign company – with corporate status abroad and legal and business headquarters outside of Turkey – is operating in the country without having a legal entity incorporated here, it is usually regarded as having limited liability under the Corporation Tax Law.

Under Turkish tax legislation, for the income of a non-resident company to be deemed to be taxable, the company must have a place of business or a permanent representative in Turkey and the earnings must have been realised either at this place of business or through this representative.

CORPORATION TAX: The corporate tax rate in Turkey is 20%. The dividend withholding tax rate is now 15% on distributions of profit to non-resident shareholders and sums repatriated by a branch to its head office. Thus the total tax burden is 32% (20% + 0.8*15%), though double-tax treaties can reduce the withholding tax rate. Dividends distributed by a Turkish entity to another resident entity remain exempt from dividend withholding tax. Tax losses may be carried forward for five years but may not be carried back. If a company incurs such losses that its share capital becomes impaired or that it becomes insolvent (technical bankruptcy), the shareholders should “repair the equity” in accordance with Article 324 of the Turkish Commercial Code.

Losses of one company cannot be used to offset profits in another company: all companies are taxed separately even when they form part of a group.

Dividends received from foreign participations are exempt from corporate income tax in Turkey if certain conditions are satisfied.

Corporation tax returns must be filed within four months from the end of a company’s accounting period (normally the calendar year – exceptions require Ministry of Finance approval). Advance corporation tax is payable quarterly during the year, with a final instalment in the month of filing.

CAPITAL GAINS: In general, capital gains form part of a company’s taxable income and are subject to 20% corporate income tax just like any other income

A corporate income tax exemption is granted for 75% of capital gains derived from the sale of participations and immovable property that have been held for at least two years, provided that certain conditions are satisfied.

Capital gains derived from the sale of foreign participations that have been held for at least two years by an international holding company resident in Turkey are exempt from corporate income tax. However, to qualify, certain conditions must be met.

Controlled foreign companies’ rules are applicable where a Turkish resident company controls, directly or indirectly, at least 50% of the share capital, dividends or voting power of a foreign entity and certain specified conditions are met. In that case, the Turkish company’s share of the foreign profits will be taxable in Turkey regardless of whether or not they are remitted to Turkey.

TRANSFER PRICING: Turkey’s transfer pricing rules are in line with OECD guidelines. The transfer pricing rules apply when transactions between related parties (either resident or non-resident) are not at arm’s length prices. In such cases, the profits arising from the transaction will be deemed to be “constructive dividends” subject to both corporate income tax and dividend withholding tax.

The rules provide for both traditional and profit-based transfer pricing methods listed in the OECD transfer pricing guidelines. Taxpayers are required to maintain documentation to support the transfer prices determined and used.

Corporate taxpayers have the right to apply for an advance pricing agreement (APA). Applications for unilateral (i.e., with the Turkish tax authority only) as well as bilateral and multilateral APAs are allowed.

The thin capitalisation rules are triggered where loans from shareholders or related parties exceed a debt-to-equity ratio of 3:1 at any time in an accounting period. Loans from related party banks or financial institutions will not trigger the rules unless the ratio exceeds 6:1. Where the debt-to-equity ratio is exceeded, interest and any relevant related expenses will be deemed to be “hidden profit distributions” or a “remittance of profits”. Such expenses will be non-deductible and subject to dividend withholding tax at the rate of 15%. Under certain conditions, borrowings from related parties may not trigger thin capitalisation provisions.

Costs incurred by headquarters located abroad may be allocated to Turkish branches and deducted through distribution keys in accordance with the arm’s length principle, provided the costs incurred abroad relate directly to the commercial activities of the Turkish branch. Branches of foreign companies are considered to have limited tax liability based on their income derived in Turkey.

Non-resident limited-liability taxpayers’ income (other than business income) is subject to withholding tax, ranging from 0% to 20%. Income such as royalties, consulting income and technical fees is subject to withholding tax at 20%.

DOUBLE-TAX TREATIES: Turkey has double-tax treaties with 76 countries, including the US, most European nations and many Middle Eastern and East Asian countries. Under Turkey’s treaties, income derived from foreign countries is generally excluded from consideration in Turkish tax computations, or tax paid in treaty countries is deductible from tax assessments in Turkey. However, the details of the treaties should be consulted. Among the benefits offered by the tax treaties are reduced rates of Turkish withholding taxes on dividends and royalties.

In the case of countries that do not have a tax treaty with Turkey, taxpayers that have full tax liability in Turkey are also taxed on their worldwide income. However, they are allowed to deduct taxes paid abroad up to the applicable Turkish rate from their Turkish tax liabilities.TAX PAYMENTS: Delays in paying taxes are subject to a monthly delay charge at the rate of 1.4% ( effective from October 19, 2010). This rate can be amended by the tax authorities at any time.

If a taxpayer fails to file a return, the tax authorities may impose an ex-officio assessment. In case of fraudulent transactions there may be imprisonment penalties from 18 months to five years in addition to the monetary tax penalties.

Advance corporation tax payments must be made based on 20% of quarterly profits, as shown in the corporate taxpayer’s quarterly income statements. Direct inspections for tax purposes are carried out by government tax inspectors under the supervision of the Ministry of Finance. Controls are strict and tax inspectors from the Ministry of Finance make spot checks of tax returns.

Certain transactions and documentation require certification by YMM financial accountants. There is an optional service available from YMM financial accountants called tax certification, in which the accountant reviews a company’s tax compliance during the year and writes an opinion to the tax authorities after the year-end about the compliance. Although optional, tax certification is widely used among businesses because the tax authorities have indicated that they are unlikely to conduct direct inspections at companies which have obtained such reports. There is also the benefit that expert advice is then available to the company’s own accountants during the year.

INDIVIDUAL INCOME TAX: In general, individuals residing in Turkey are liable for personal income tax on all of their worldwide income. However, individuals who do not reside in Turkey but receive part of their income from Turkey are liable for income tax only on their income derived in Turkey. The former are known as full-liability taxpayers, and the latter as limited-liability taxpayers.

Expatriates who reside in Turkey for more than six months in one calendar year are generally considered as full-liability taxpayers. Foreigners who are in Turkey for a fixed period on a temporary mission are not regarded as settled or residing in Turkey, even if they stay for more than six months. To determine the Turkish tax liability of an expatriate, the provisions of double-tax treaties with the individual’s home country should also be considered.

Regardless of their nationality, most Turkish residents, unless covered by exemption, are subject to personal income tax. The emoluments of employees of liaison offices are exempt from income tax subject to certain conditions. Income tax is levied on the following types of personal income:

Individuals earning commercial and/or professional service income are required to make advance income tax payments based on 15% of quarterly profits shown in their quarterly income statements.

Tax evasion and  tax evasion penalties

Regulations concerning acts of tax evasion and tax evasion penalties are provided in Article 359 of the Tax Procedures code. The most important characteristic of  the tax evasion penalties is that, the taxpayers who commit acts of tax evasion, become subject to penalties of imprisonment.

The text of Article 359, as amended by Law numbered 359, reads as follows:

Regarding the following books and documents that are  maintained or drawn up according to tax laws, and that are required to be retained and presented:

Those who apply collision in accounting applications, who open accounts to the names of fictitious persons or to the name of persons who are irrelevant to the transactions shown in the records, or who record  the accounts and transactions that should be recorded in the legal entries  wholly or in part, to other books, documents or in other accounting media in a manner  that results in  the reduction of the tax base,

Those who falsify or conceal books, records or documents, or who draw up documents that contain false and misleading information,  or who use such documents,

Become subject to a penalty of imprisonment between one year to three years. In cases when their existence is determined by a notary certificate or by other means, the failure to present the books and the documents, is deemed as concealment for purposes of this provision. Meanwhile, a document that is based on an actual transaction or situation, that reflects the nature of the amount or the amount involved is conflict with the reality, is considered as a false or misleading document as per its contents.  b) Those who destroy the pages of the books , records or documents which must according to tax laws be maintained and replace the pages of the books  with other pages or with no pages at all; those who fraudulently draw up all or a part of the originals and the copies of the documents, or who use such documents, are subject to penalty of imprisonment between three to five years. A fraudulent document is a document that is drawn up to show a transaction or situation that has not taken place, as if such transaction or situation  actually took placec) Those who print the documents that can only be printed by printers that have signed a special contract by the Ministry of Finance, without receiving an authorization from the Ministry, are subject to penalty of  imprisonment between two years to five years.