Turkey Corporate Tax for Foreign Companies: Territorial Rule
Türkiye's territorial tax principle ensures foreign firms only pay tax on local earnings. Explore how Liaison Offices offer a tax-free entry point for global brands in 2026.
Business, trade and investment news from Türkiye
Foreign companies can operate in Türkiye through a subsidiary, a branch or a liaison office, and each option is taxed differently. Corporate income tax follows a territorial principle for non-residents, digital compliance is strict, with e-invoicing and e-ledger rules covering most businesses, and the way a Turkish entity is financed changes its tax bill.
These guides cover the questions finance and legal teams ask before entering the market: how foreign companies are taxed, which e-invoicing thresholds apply, how debt and equity financing are treated and how to restructure tax-efficiently.
Türkiye's territorial tax principle ensures foreign firms only pay tax on local earnings. Explore how Liaison Offices offer a tax-free entry point for global brands in 2026.
Mandatory e-invoicing and e-ledger rules in 2026 now cover almost all e-commerce and high-turnover firms in Türkiye. Stay compliant with GİB’s latest digital tax standards.
Türkiye offers a 75% notional interest deduction for foreign capital in 2026. Compare the tax benefits of debt vs. equity and learn about thin capitalization rules.
Discover how to merge your Turkish entities tax-free in 2026. Learn about loss carryforwards and VAT transfers under Article 19 of the Corporate Tax Law.