Foreigners living or working in Turkiye often encounter the need to understand the country’s taxation system. Whether you’re planning to settle, purchase property, or start a business, obtaining a Turkish tax number is a critical first step. This article provides a detailed guide to taxation for foreigners in Turkiye, including the process of acquiring a tax number and understanding the tax implications of various activities.

Why Foreigners Need a Tax Number in Turkey

A tax number in Turkey, known as a Vergi Numarası, is essential for conducting several financial and legal activities. Here are some common scenarios where foreigners need a tax number:

• Opening a bank account: Most Turkish banks require a tax number to open a personal or business account.
• Renting or purchasing property: Landlords and real estate agencies often request a tax number for lease agreements and property registrations.
• Setting up a business: Entrepreneurs must have a tax number to register and operate legally.
• Paying taxes: Whether you’re earning income in Turkey or subject to other taxes like property tax, you need a tax number to fulfill your obligations.

Even if you don’t live in Turkiye full-time, you may still need a tax number for financial transactions like property investment or managing an inheritance.

How to Obtain a Tax Number as a Foreigner

Obtaining a Turkish tax number is straightforward and typically free of charge. Here’s a step-by-step guide:

1. Visit a Tax Office:
Go to the nearest Vergi Dairesi (Tax Office) in your area. Most cities have several tax offices, and larger metropolitan areas like Istanbul have English-speaking staff in central locations.

2. Provide Required Documents:
Foreigners must present the following:

• A valid passport (original and a photocopy).
• Proof of address in Turkey (such as a rental agreement or utility bill, if available).

3. Complete an Application Form:
Fill out a simple form with your personal details, including your name, passport number, and address.

4. Receive Your Tax Number:
Your tax number is usually issued immediately. The process can often be completed in under an hour.

Types of Taxes Foreigners Are Subject To in Turkey

Turkiye’s tax system consists of various categories, each relevant depending on your activities and income sources. Below are the main tax types that foreigners may encounter:

1. Income Tax (Gelir Vergisi)

Income tax applies to individuals earning income in Turkiye. If you are considered a tax resident (spending more than 183 days a year in Turkiye), you are taxed on worldwide income. Non-residents, however, are only taxed on income derived from Turkiye, such as:

• Employment income from a Turkish company.
• Rental income from property in Turkey.
• Income from Turkish investments.

The income tax rate in Turkiye ranges from 15% to 40%, depending on income brackets.

2. Value Added Tax (KDV)

Value Added Tax (VAT) applies to most goods and services in Turkiye. The standard VAT rate is 18%, but reduced rates of 1% or 8% apply to essential items such as food and healthcare products.

Foreigners often encounter VAT when purchasing property or conducting business in Turkiye. In some cases, VAT refunds are available for non-residents who meet specific criteria.

3. Property Tax (Emlak Vergisi)

If you own property in Turkiye, you are subject to annual property taxes. Rates vary depending on the property’s location and type but typically range from 0.1% to 0.6% of the property’s declared value.

4. Corporate Tax (Kurumlar Vergisi)

For foreigners operating businesses in Turkiye, corporate tax is levied at a flat rate of 25% on company profits.

5. Withholding Tax (Stopaj Vergisi)

Withholding tax applies to certain types of income, such as dividends, interest, and royalties. The rates vary depending on the nature of the income and Turkiye’s tax treaties with other countries.

Double Taxation Agreements (DTAs)

To avoid double taxation, Turkiye has agreements with numerous countries. These agreements ensure that income earned in Turkey is not taxed again in your home country (or vice versa). Common benefits under DTAs include reduced withholding tax rates on dividends and exemptions for specific types of income.

Foreigners should consult with a tax advisor or their home country’s tax authority to understand the implications of these agreements fully.

Common Tax Filing Requirements for Foreigners

If you’re required to pay taxes in Turkiye, you’ll need to adhere to the following filing procedures:

• Income Tax Declaration: Must be filed annually by the end of March for the previous year’s income.
• VAT Filings: Businesses must submit monthly VAT declarations.
• Property Tax Payments: Property taxes are due in two installments, typically in May and November.
• Social Security Contributions: If employed or running a business, social security payments may apply.

Filing can be done online through Turkiye’s e-government platform (e-Devlet) or with the assistance of a certified accountant.

Penalties for Non-Compliance

Failure to comply with Turkish tax regulations can result in significant penalties, including:

• Late payment fines.
• Interest on unpaid taxes.
• Legal action for severe violations.

Foreigners are advised to keep detailed records and consult with a tax advisor to avoid errors and ensure compliance.

Tips for Foreigners Navigating Turkish Taxes

1. Understand Your Residency Status:
   Your tax obligations depend on whether you’re a resident or non-resident in Turkiye. Spending more than 183 days in a calendar year typically qualifies you as a resident.

2. Consult a Tax Professional:
   Tax laws can be complex, especially for foreigners dealing with multiple income sources. A tax advisor familiar with Turkish regulations can save you time and money.

3. Keep Accurate Records:
   Maintain copies of all financial transactions, including income, expenses, and tax payments. These records are essential for filing taxes and addressing potential disputes.

4. Use e-Devlet for Convenience:
   Turkiye’s e-government platform allows residents to manage their taxes, payments, and filings online, simplifying the process significantly.

Benefits of Understanding Turkish Taxation

By understanding Turkiye’s taxation system, foreigners can:

• Avoid unnecessary fines or penalties.
• Maximize tax benefits under Double Taxation Agreements.
• Confidently conduct financial transactions, such as property purchases or business operations.

Being informed about your tax obligations also enhances your overall experience in Turkey, reducing stress and enabling smoother financial planning.

Conclusion

Navigating the Turkish tax system as a foreigner doesn’t have to be complicated. By obtaining a tax number and understanding your specific obligations, you can efficiently manage your finances and avoid legal pitfalls. Whether you’re working, investing, or simply living in Turkiye, staying informed about taxation ensures a seamless experience.

If you’re unsure about your tax responsibilities, seek professional advice to ensure compliance and make the most of the opportunities available in Turkiye.

Key Considerations for Year-End Processes

Year-end is a critical period for businesses to review their financial and operational activities. Successfully managing year-end processes is essential for accurate reporting, legal compliance, and planning for the future. It requires attention to detail, organization, and, often, expert assistance to ensure that all aspects are addressed properly.

Below, we’ll explore the key steps and considerations for a smooth and efficient year-end process.

Keeping Financial Records Up-to-Date

Accurate and updated financial records are essential for understanding the financial health of your business. As the year ends, take the following steps:

• Income and Expense Statement: Ensure all income and expenses are properly recorded.
• Invoice Review: Address any missing or incorrect invoices promptly.
• Cash and Bank Balances: Verify that cash and bank accounts match accounting records.

Inventory Counting and Valuation

Proper inventory management is crucial for profitability and accurate financial reporting.

• Physical Count: Conduct a physical count of all inventory items.
• Valuation: Assess the cost value of inventory and ensure it aligns with records.
• Obsolete Stock: Identify and record unusable or outdated stock items.

Tax Preparation for Year-End

Filing taxes accurately is one of the most important legal responsibilities for any business.

• Quarterly Tax Filings: Ensure the final quarterly tax returns are prepared and submitted.
• VAT Returns: Verify VAT deductions and payments are calculated correctly.
• Stamp Duty: Check if any outstanding stamp duties for documents or agreements need to be settled.

Depreciation and Asset Management

Correctly reporting fixed assets is key for compliance and accurate financial reporting.

• Depreciation Calculations: Review depreciation schedules for buildings, machinery, vehicles, and other assets.
• Asset Inventory: Maintain an updated list of company assets and reconcile with records if necessary.

Employee-Related Processes

Year-end also involves reviewing employee-related records and benefits.

• Payroll Records: Ensure all annual payroll details are accurate and complete.
• Severance and Notice Pay: Calculate any outstanding severance or notice pay obligations.
• Social Security Declarations: Verify that all social security filings have been made correctly.

Strategic Planning and Evaluation

Year-end is not just about reviewing the past but also preparing for the future.

• SWOT Analysis: Analyze the company’s strengths, weaknesses, opportunities, and threats.
• Budget Planning: Develop a budget for the upcoming year.
• Performance Evaluation: Assess the performance of departments and individuals.

Tips for Efficient Year-End Processes

• Start Early: Begin preparations well before the year ends to avoid last-minute stress.
• Utilize Technology: Use digital tools to streamline and automate tasks.
• Seek Professional Help: Don’t hesitate to get expert support for complex processes.

Conclusion

Year-end processes are vital for maintaining the financial and operational health of a business. By staying organized, utilizing digital solutions, and seeking professional assistance when needed, businesses can ensure compliance and set themselves up for success in the new year.

Today, environmental sustainability is a top priority for businesses and society. Problems such as depletion of natural resources, climate change and environmental pollution attract the attention of both governments and the private sector. In this context, green independent audit practices play a critical role in assessing the environmental performance and sustainability strategies of businesses.

What is a Green Independent Audit?

A green independent audit is a type of audit that assesses and reports on an organization’s environmental responsibilities and sustainability performance. These audits assess and report on an organization’s environmental impact, use of natural resources, energy consumption and waste management.
nspects and assesses its compliance with sustainability standards.

Why is it Important?

Legal Compliance: Environmental protection laws and regulations are becoming increasingly stringent. Green independent auditing prevents potential legal problems by ensuring that businesses comply with these laws.

Competitive Advantage: Sustainability has become an important factor in consumer preferences. Green audit reports document the environmentally friendly practices of businesses and create a positive image in the eyes of customers and investors.

Risk Management: Environmental risks can cause financial and reputational damages for businesses. Green audits help identify and manage these risks.

The EU Green Deal and What It Means for Business

The European Union’s Green Deal is a comprehensive initiative to prepare Europe for a carbon neutral continent by 2050. This
wide-ranging issues such as consensus, sustainable energy use, circular economy, biodiversity and consumption reduction.
Contains policies and regulations. The EU Green Deal provides a set of playable and opportunities for activities that demonstrate activity across the spectrum of members.
offers:
Carbon Footprint Reduction: Various measures need to be taken for businesses to reduce their carbon footprint. This is energy revenues
This includes steps such as increasing energy consumption, complementing replaceable energy sources, and optimizing waste management.
Circular Economy: Adopting circular economies to extend the life of products and extend the range of resources
is encouraged. This allows them to minimize source narration of information and increase their recovery.
Transparency and Reporting: The EU Green Deal calls for more transparency about their performance rather than their performance. This,
It means storing the contents of sustainability reports and making them publicly available.
Green Audit Process
Planning: The audit process is planned taking into account the field of activity and the effects of the demonstrations.

EU Green Deal requirements are also taken into account at this stage.

1.Data Collection and Analysis: It is based on the performance data of the business and analyzed. In this process, energy consumption, water use, waste
Transferring data such as production. In addition, the level of compliance with EU regulations is also examined.

2.Evaluation and Reporting: Data collected, storage and a report according to sustainability and the EU Green Deal
prepare. This report provides detailed information about performance performance and includes their recommendations.
3.
Iqdenetim and Green Independent Audit
As iqdenetim, we support them in their sustainability journey with green independent audit activities. EU Green
Evaluate, report and evaluate marketing performance in accordance with the Consensus and other international standards.
We offer summary support on development. In our inspections, we aim to minimize the problems in the pores and
helps you achieve sustainability equipment.
Businesses need to improve their sustainability performance, not only by being consolidated, but also by ensuring their legal compliance.
It also helps maintain competitive advantage. As iqdenetim, we provide green independent auditing services in this process.
It guides them and enables them to fulfill their activity responsibilities regarding developments.

**Green Deal Reporting Tools**

The EU Green Deal includes a series of regulations that require businesses to report on their environmental and sustainability performance. This reporting ensures that companies transparently disclose the environmental impacts of their activities. In this process, businesses can utilize various reporting standards, tools, and frameworks. Here are some commonly used reporting tools to comply with the Green Deal:

1. Global Reporting Initiative (GRI) Standards
GRI Standards are the most widely used sustainability reporting framework globally. These standards enable businesses to report on their economic, environmental, and social impacts. GRI provides sustainability performance indicators that help companies measure and report their environmental impacts.

2. Carbon Disclosure Project (CDP)
CDP is a platform that allows companies to report environmental information such as carbon emissions, water usage, and forest resources. Through CDP, companies can assess and report their carbon footprints and climate change risks. This platform is an essential tool for providing transparency to investors and other stakeholders.

3. Sustainability Accounting Standards Board (SASB)
SASB is an organization that develops industry-specific sustainability accounting standards. These standards allow companies to provide information on sustainability issues that, while non-financial, are important to investors. SASB standards are suitable for businesses looking to integrate environmental, social, and governance (ESG) performance with financial reports.

4. Task Force on Climate-related Financial Disclosures (TCFD)
TCFD is an initiative that promotes the disclosure of climate-related financial information. The TCFD framework guides companies in evaluating their climate change-related risks and opportunities and disclosing this information in their financial reports. This framework helps investors assess companies’ resilience to climate risks.

5. Integrated Reporting
Integrated Reporting encourages companies to combine financial and non-financial information in their reports. This reporting format offers a comprehensive perspective on the value created, resources used, and long-term strategic goals of the company. It provides a more holistic report by integrating sustainability and financial performance.

6. ISO 14001 Environmental Management System
ISO 14001 provides a framework for companies to manage and continuously improve their environmental performance. This standard requires the establishment, implementation, and improvement of a management system for managing environmental impacts. ISO 14001 certification also serves as a tool for companies to formally demonstrate their environmental responsibilities.

Yakından bakıldığında kurumsal muhasebe ve vergi denetimi belirli bir kavram içerisinde yer almaktadır. Kurumsal muhasebenin kapsamış olduğu konular içerisinde vergi ve vergi denetimi de bulunmaktadır. Bu açıdan kurumsal muhasebe hizmetleri ne denli yerine getirilir ise vergi denetimi süreçleri de o bağlamda kusursuz işleyecektir. Yapılan tüm inceleme ve denetlemeler içerisinde vergi de yer aldığı için, vergi denetim süreçleri adına kurumsal muhasebenin düzgün işlemesi şarttır. Bu her firmanın mutlaka gerekli yasal eylemlere göre finansal sunumlarını ve raporlarını hazırlamasını gerektirmektedir. Firmaların yasa dışı tüm eylemlerden uzak durmalarını, şirketlerin doğru çerçeveler içerisinde büyümesini, soruşturmaların uyumlu şekilde geçebilmesini sağlamak ve daha pek çok benzeri konu adına kurumsal muhasebeye çok iş düşmektedir. Vergi denetim süreçleri de elbette bu açıdan doğru adımlarla ilerlemelidir.

Kurumsal Muhasebe Nedir?

Muhasebenin alt dallarından bir tanesi kurumsal muhasebedir. Kurumsal muhasebe için bir işletmeye, şirkete dair tüm finansal bilgilerinin ve hesaplarının kaydedilmesi tanımını yapmak mümkündür. Buna ek olarak, şirketlere ait finansal girdilerin sınıflandırılması, analiz etme ve raporlama işlemleri de kurumsal muhasebenin alanı içerisine girmektedir. Şirketler ile ilgili her türlü nakit akışlarını izlemek, finansal durumları incelemek, kısacası bir işletmenin tüm mali kayıtlarını tutan ve inceleyen alt muhasebe dalıdır. Tüm bu kayıtların sunulması elbette yasal gerekliliklere göre ayarlanmaktadır.

Bir işletmenin mali kayıtları derlenirken belirli süreçlerden geçilmektedir. Muhasebe firmanın günlük işlemlerini tutmaktadır. Bu genellikle finansal kayıt işlemleri olarak adlandırılmaktadır. Günlük işlemlerin gelir tabloları hazırlanır ve bilanço, akış tabloları çizilir. Tüm bu mali kayıtların ve gelir tablolarının hazırlanması mutlaka denetimi de beraberinde gerektirmektedir. Aynı zamanda vergi yasalarına en uygun şekilde raporlama yapmak da kurumsal muhasebenin en önemli işlevlerinden bir tanesidir. Sürecin son aşamasında, tüm işletmelerin geleceğe dair finansal ilerlemeleri, hedefleri açısından planlamalar yapmak kurumsal muhasebe tutanakları arasında yerini almaktadır.

Vergi ve Vergi Denetimi Nedir?

Devlet, kamu kuruluşlarından, bireylerden, tüzel kişilerden kamu harcamalarını geçekleştirebilmek adına para talep etmektedir. Bu talep vergi olarak adlandırılmaktadır. Kişilerin ya da kuruluşların ekonomik oluşumlarına göre verginin değerinde oranlamalar gerçekleştirilmektedir. Vergi denetimi ise; bu kuruluş ve kişilerden aldığı paranın, adil bir sistem içerisinde gerçekleştirilmesi adına işlenen bir süreçtir. Vergi denetiminde firma ya da kişilerin, vergi kaçırmasını ya da yanlış bildirimlerde bulunmasını önlemek maksadı ile uygulamalar gerçekleştirilmektedir.

Vergi denetimi tarafsız kişi ve kurumlarca gerçekleştirilmektedir. “Bağımsız Denetim Şirketi” olarak adlandırılan şirketlerce bu işlemler yapılabilmektedir. Kanunlar gözetilerek işletmelerin veya kişilerin muhasebe kayıtları incelenir. Vergi düzenlemeleri, firmaların büyüklüğü göz önünde bulundurularak vergi denetim süreci değişebilmektedir. Titizlikle işleyen süreç hukuki bir süreçtir. Süreç içerisinde tüm beyanlar, finansal kayıtlar, tablolar dikkatli bir şekilde incelenmekte, raporlanmaktadır.

Vergi Denetim Süreçleri Hangi Aşamaları İçermektedir?

Vergi denetim süreçleri birkaç adımdan oluşabilmektedir. Planlama sürecin en önemli adımıdır. Kişiler veya kurumlar belirlenmeli, denetim süresi, hedefleri ortaya konmalıdır. Tüm sürecin titiz bir şekilde ilerleyebilmesi bu adımla gerçekleşmektedir.

Devlet tarafından belirlenen vergi denetimcileri tüm verileri toplamaktadır. Finansal kayıtlar, sözleşmeler, beyannameler, gelir tabloları incelenir. Tüm bu mali bilgiler dikkatlice analiz edilir. En ufak usulsüzlük, hata, kaçak vb. gibi kusurlar belirlenebilir. Raporlama işlemlerinin ardından denetimciler, tüm ayrıntıları otoritelere bildirimde bulunur. Ardından otoriteler gerekli incelemeleri yaparak bir usulsüzlük belirlenir ise, bir hata fark edilirse bu duruma uygun süreç de başlatılacaktır.

Tüm bu süreç kuruluş ya da kişilerin vergi kaçırmasını, muhasebe kayıtları oluşturulurken yapılan hataların düzeltilmesini, tüm vergi mükelleflerinin yükümlülüğünü yasalara uygun bir şekilde yerine getirmesini sağlamak amacı ile izlemektedir. Vergi Incelemelerin de karsilasilabilecek olasi durumlar kapsamında, sürecin başından itibaren profesyonel destek almak önemlidir. IQ Denetim olarak sizlere her anlamda destek veriyoruz.

Sustainability has become an increasingly prominent issue in today’s business world. Companies have shifted from being solely profit-oriented to taking responsibility for environmental, social and corporate governance issues. Sustainability reporting standards and guidelines have been developed to fulfill these responsibilities and ensure transparency.

What is Sustainability?

Sustainability reporting is a set of reports prepared to assess and present a company’s social, environmental, and economic performance to stakeholders. These reports include the company’s sustainability strategies, goals, achievements, and areas for improvement. Sustainability reporting allows companies to measure not only their financial performance but also their environmental and social impact.

International Sustainability Standards

Many international organizations and institutions have developed specific standards and guidelines that companies should follow when preparing their sustainability reports. The most well-known of these are the standards of organizations such as the Global Reporting Initiative (GRI), Carbon Disclosure Project (CDP), United Nations Global Compact (UNGC) and Sustainability Accounting Standards Board (SASB).

• Global Reporting Initiative (GRI): GRI is the most widely used standard for measuring, reporting and improving companies’ sustainability performance. GRI standards cover economic, environmental and social dimensions and enable stakeholders to understand a company’s sustainability performance.
• Carbon Disclosure Project (CDP): CDP is a platform that assesses how companies manage the risks and opportunities associated with climate change. By reporting their carbon footprint and other climate change-related data to CDP, companies can be better understood by investors and stakeholders.
• United Nations Global Compact (UNGC): The UNGC is an initiative that encourages companies to adopt sustainability principles. The UNGC’s ten principles cover issues such as human rights, labor standards, environmental protection and anti-corruption.
• Sustainability Accounting Standards Board (SASB): SASB develops sectoral standards to help companies integrate sustainability performance into their financial reporting processes. These standards address sector-specific environmental, social and governance issues.

In Turkey, there are certain standards and guidelines on sustainability reporting and governance. In particular, organizations such as the Business Council for Sustainable Development Turkey (BCSD Turkey) and the Sustainable Development Foundation of Turkey (TÜRKONFED) are taking various initiatives to raise awareness and promote transparency on sustainability in the Turkish business community.

These organizations are working to ensure that companies in Turkey comply with international standards and create a sustainability reporting framework that is appropriate for local conditions. The Turkish Sustainability Reporting Standards (TSRS) is a product of these efforts.

TSRS is a series of standards published by the Public Oversight, Accounting and Auditing Standards Authority, which sets out the general terms and principles that enterprises subject to the decision must comply with in their sustainability reporting. These standards aim to facilitate large enterprises’ access to green finance through sustainability reporting and to improve their ability to obtain investment.

The TSRS consists of two main parts: S1 – General Requirements for Disclosure of Sustainability-Related Financial Information and S2 – General Requirements for Disclosure of Sustainability-Related Financial Information. These sections provide specific guidance and requirements to ensure transparent reporting of sustainability-related financial information.

In addition, the companies that are obliged to apply TSRS have been determined. Companies with total assets of TL 500 million, annual net sales revenue of TL 1 billion and more than 250 employees are obliged to prepare a sustainability report within the scope of IFRS. In addition, some companies subject to Capital Markets Board regulation must also comply with the TSRS.

According to the Board Decision on the Scope of Implementation of Turkish Sustainability Reporting Standards (TSRS) published in the Official Gazette No. 32414 dated December 29, 2023, the companies that are obliged to apply TSRS have been determined. These enterprises are required to prepare a sustainability report under TSRS if they exceed the threshold values of at least two of the following criteria in two consecutive reporting periods:

Total assets of 500 million Turkish Liras,
Annual net sales revenue of 1 billion Turkish Liras,
Number of employees more than 250 people.

Organizations that meet these criteria are obliged to prepare a sustainability report following TSRS. In this way, the sustainability performance of large-scale enterprises in Turkey can be monitored more transparently. These reports are efficient tool for evaluating companies’ sustainability strategies and communicating with stakeholders.