Tax Advisory

Can I simply leave the money abroad?

Leaving it there is not the neutral option it appears to be. Where certain conditions coincide, the profit of the company abroad is treated as distributed and taxed in Turkey even though nothing was actually paid out. Broadly, those conditions are that Turkish full taxpayers control at least half of the company, that more than a quarter of its gross revenue is passive in nature, and that the effective tax burden in its own country is below 10%. If they are met you end up having paid the tax without having received the money.

Read the full article: You Earned It Abroad. How Do You Bring It Into Turkey? →