Finance & Compliance
17 posts
Bank Feed Reconciliation and Collection Matching for a Türkiye Subsidiary
A finance team spends the first days of every month matching bank lines against open invoices by hand, and TL-FX accounts plus withholding deductions make it worse. This explains how bank feed integration and automated matching actually work.
Customer Credit Limit Controls and Sales Risk in a Türkiye Subsidiary
A sales order goes out to a customer who is already 90 days past due, because nobody in the order flow can see the outstanding balance. This guide explains how credit limit controls, override chains, and aging visibility close that gap before it reaches the parent's balance sheet.
Türkiye Extends Tax Debt Deferral to 72 Months, with a Lower Interest Rate for Requests by 31 August 2026
Law No. 7582 raised the maximum installment period for overdue Turkish public receivables from 36 to 72 months, and a communiqué set a reduced 29% deferral interest rate for requests filed by 31 August 2026. Here is what foreign-owned subsidiaries need to know now that the application window has closed.
What Is GEKAP? Türkiye's Recovery Participation Fee in 2026
Türkiye's 2026 GEKAP amounts rose by the 25.49% revaluation rate, with the plastic bag fee reaching 107 kuruş per unit. Here is how the Recovery Participation Fee works, who files, the filing calendar, and what foreign-owned subsidiaries most often get wrong, with sources.
What Circular 26 Changes in Reduced Corporate Tax for Manufacturers in Türkiye
Circular 26 (4 July 2026) raises the production earnings tax reduction from 1 to 12.5 points effective 2027, cutting the rate on production income to 12.5%. The export reduction stays at 5 points. Here is how foreign-owned entities should prepare, with sources.
Dividend Repatriation from a Turkish Subsidiary with 15% Withholding and Treaty Relief
Türkiye raised its dividend withholding tax from 10% to 15% in December 2024. For a foreign parent, that rate, and any reduction under a double-tax treaty, directly shapes the cash that reaches the group. A sourced guide to getting repatriation right.
Cost Center Accounting for Turkish Subsidiaries
Most subsidiaries know their total profit but not where it's made or lost. Cost centers add the 'who/where spent it' dimension, answering which branch, department or project pays off. A practical guide to cost-center types, allocation keys and ERP setup.
Cheque and Promissory Note Risks for Foreign Operators in Türkiye
Post-dated cheques are everywhere in Turkish B2B trade, and a bounced cheque carries criminal exposure under Law No. 5941, with a 3-month complaint window. A practical guide to portfolio tracking, endorsement risk and what foreign-owned companies must control.
What Foreign-Owned Companies Get Wrong About Stamp Duty (Damga Vergisi) in Türkiye
Türkiye taxes the signing of contracts, not just income. The 2026 contract rate is per mille 9.48, the per-document cap is 29,115,961.10 TRY, and both parties are jointly liable. A sourced guide for foreign operators to avoid a costly surprise.
VAT (KDV) Rates, Refunds and Withholding in Türkiye for Foreign Operators
Türkiye's VAT runs at three rates (20%, 10% and 1%), with monthly filing and a withholding mechanism that surprises many foreign-owned companies. A practical, sourced guide to getting Turkish VAT right from day one.
Türkiye's 2026 Corporate Tax Rate, the Inflation Accounting Suspension and What They Mean for a Parent Group
Türkiye's corporate tax rate is 25%, and inflation accounting has been suspended for 2025-2027. For foreign-owned subsidiaries, both facts change how your local result reconciles to group reporting. A practical, sourced breakdown.
Year-End Inventory Valuation in Türkiye for Foreign Operators
Inventory is often the biggest line on a trading company's balance sheet, and Türkiye's valuation rules plus inflation accounting make it tricky for foreign-owned operations. A practical guide to costing methods, year-end counts and the parent-reporting reconciliation.
What Foreign-Owned Companies Get Wrong About Multi-Currency Accounting in Türkiye
Operating a Turkish subsidiary means living in two currencies: the Turkish Lira for local compliance and your group reporting currency. Exchange differences, functional currency rules and reporting reconciliation trip up many foreign finance teams. A practical guide.
What Finance Teams Must Track for Transfer Pricing in a Foreign-Owned Turkish Subsidiary
If your Turkish subsidiary buys from or sells to the parent group, transfer pricing rules apply. Türkiye follows OECD principles with local documentation requirements. A practical guide to what your finance team must track and document to stay compliant.
Multi-Currency ERP and TL Volatility for Turkish Exporters
Turkish exporters earn in EUR/USD but report in TL. Currency volatility can wipe a healthy operating margin in a single month. This guide covers the multi-currency capabilities your ERP must have, hedging workflow integration, and the 5 reporting traps that mislead foreign HQs.
e-Fatura vs e-Arşiv for Foreign Companies Buying from Turkish Suppliers
Foreign buyers receive Türkiye-issued e-Invoices in two distinct flavours: e-Fatura (B2B, GİB-routed) and e-Arşiv (B2C / non-registered, supplier-routed). This guide explains the difference, how to validate them, and the 4 finance-ops mistakes to avoid in 2026.
How to Work with a Turkish CPA (SMMM) Inside Your ERP
In Türkiye accounting runs through a regulated Certified Public Accountant (SMMM), not a junior accountant. This guide explains the legal mandate, cost ranges, ERP collaboration patterns and the 5 mistakes foreign GMs repeatedly make in 2026.