Turkey is strategically located between Europe, the Middle East and Central Asia and offers significant opportunities for foreign investors.
There are several types of company in Turkey; Joint Stock Companies, Limited Liability Companies, Collective Companies, Partnerships Limited by Shares and Cooperative Associations. The difference between these companies concerns the allocation of liability and the legal form of the entity. The most commonly used company for international business companies is the Limited Liability Company.
Key benefits of Turkey:
- Turkey is ranked as the 15th most attractive destination for foreign direct investment (FDI) in the world (UNCTAD World Investment Prospects Survey, 2008-2010)
- Customs union with the EU
- Large high quality, cost-effective labour force.
- Flexible exchange rate and liberal import regulations
- Turkey has a large number of double taxation agreements and tax incentives
- Turkey has a large consumer base with substantial purchasing power
Establishing a company branch or subsidiary in Turkey
Foreign Companies can open branches in Turkey and the removal of pre-setup approval by the Turkish Authorities has made it easier to open a Turkish Branch of a Foreign Company. The establishment of a branch office in Turkey is subject to the approval from the Ministry of Commerce and Industry.
Legally a branch office is considered the same as a Limited or Joint Stock Company in Turkey. The only difference is that Branch Offices are bound to the mother company and there are more procedures required to establish the branch office.
OECD publishes compliance review for all non-compliant jurisdictions
The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.
EU Parliament Committee release findings & recommendations for current offshore taxation measures
A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.
2017 G20 summit: Enforcement of taxation highest priority
The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.
The EC takes action against advocates promoting tax avoidance schemes
The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.
What are the new Beneficial Ownership reporting requirements for BVI companies?
Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.
Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?
Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.
Cyprus tax department releases new guidance on CRS deadlines and the online portal
The Cyprus Tax Department has released a notification to all Cyprus based Financial Institutions & Service Providers of the new guidance notes on the Automatic Exchange of Financial Account Information and other information relating to the Common Reporting Standard (CRS).
Hong Kong establishes AEOI agreement with Indonesia
Last week, Hong Kong finalised and signed an agreement with Indonesia to allow for the automatic exchange of financial information (AEOI) regarding all tax matters.