Tax Advisory

Does a branch differ from a company for distribution purposes?

Not for the rate. A non-resident company operating in Turkey through a branch is subject to the same 15% withholding on the amount transferred to head office after corporate tax. The difference is structural rather than fiscal: a branch is not a separate legal entity, so bringing in a partner or transferring shares works far more easily in a company.

Read the full article: Distributing Profit From a Technopark Company With Foreign Shareholders: What Happens to Exempt Earnings →