Finance & Compliance
13 posts
Reduced Corporate Tax for Manufacturers in Türkiye: What Circular 26 Changes for Foreign-Owned Operations
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: The 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 actually reaches the group. A sourced guide to getting repatriation right.
Cost Center Accounting for Turkish Subsidiaries: Knowing Where the Profit Really Is
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.
Cheques and Promissory Notes in Türkiye: A Foreign Operator's Risk Guide
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.
Stamp Duty (Damga Vergisi) in Türkiye: What Foreign-Owned Companies Keep Getting Wrong
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) in Türkiye: A Foreign Operator's Guide to Rates, Refunds and Withholding
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 Corporate Tax 2026: The Rate, the Inflation-Accounting Suspension, and What It Means for Your 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.
Inventory Valuation in Türkiye: A Foreign Operator's Guide to Getting Year-End Right
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.
Multi-Currency Accounting in Türkiye: What Foreign-Owned Companies Get Wrong
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.
Transfer Pricing for Foreign-Owned Subsidiaries in Türkiye: What Finance Teams Must Track
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 for Turkish Exporters: A Practical TL Volatility Survival Guide (2026)
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: A Practical Guide for Foreign Companies Buying from Turkish Suppliers (2026)
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.
Working with a Turkish CPA (SMMM) Inside Your ERP: A Practical Guide for Foreign-Owned Subsidiaries
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.