Tax Advisory
Can I simply leave the money abroad?
If you hold the company directly in your own name, yes: undistributed profit is not taxed in Turkey, and the tax arises in the year you receive the dividend. The controlled foreign company rule, which treats undistributed profit as distributed, applies only when the shareholder of the company abroad is a Turkish resident company. Two limits remain: if the company is in fact managed from Turkey it can become a Turkish taxpayer itself, and when the money is eventually distributed the transfer condition for the half exemption applies again for that year.