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Are we required to pay withholding (15%) for our payment to Google adwords?


Our company is making payments to Google via credit card for adwords. Pursuant to Decree numbered 476 and dated 19.12.2019, are we required to deduct 15% withholding for this service as of 01.01.2019?



In terms of General Communique on VAT Application it can be explained as; ‘’If the service brought to Turkey is in relation with the company’s activities in Turkey, the service is used in Turkey; if the service is not in relation with activities in Turkey, if its consequences are outside of Turkey, it is not used in Turkey.’’

In terms of General Communique on VAT, the VAT for services provided from abroad must be declared as reverse charge VAT by the addressee within the country making use of the service.

To deduce on VAT declaration (number: 1) the VAT
related to the import of services in accordance with Articles 1 and 2 of VAT Law;

Turkish persons and authorities shall give the reverse charge VAT declaration (Number: 2) and make payment to the related tax authority and deduce the VAT by showing it on the VAT declaration (Number: 1).


On condition that the utilization takes place in Turkey and there is no provision impeding the VAT;

-Getting technical, installation or consultancy services from abroad,

-Getting or renting incorporeal rights from abroad (know-how, brand etc.),

-Bringing a rented moveable (e.g. construction equipment)  from abroad and using it in Turkey

-getting software services from abroad,

-getting repair-maintenance services from abroad,

-late interests related to the supply of goods from abroad,

-the service of a person who is an employee of a foreign company and works temporarily in Turkey



To not be subject to VAT for a service from abroad;

-It must be a service that is not subject to VAT,

– The service must not be imported to Turkey (or performed and made use of)

– The imported service must be one that is subject to VAT exemption.


All services provided from abroad and that do not fulfill these three conditions are subject to VAT.

A tax agreement between Turkey and the provider’s country of residence do not affect the VAT liability as tax agreements do not inclose VAT.




Incomes of real and legal persons in Turkey obtained through their services abroad are subject to income and corporate tax in Turkey unless otherwise implied in tax agreements.

Withholding in the amount that is specified in Cabinet Decision in accordance with Corporate Income Tax must be deducted from the payments made abroad and declared with the withholding tax return.

In accordance with Article 30 of Corporate Tax Law numbered 5520, to withhold;

-The service provider must be a resident of a foreign country.

-In terms of its natüre, the service must be subject to withholding pursuant to Article 30 of Corporate Tax Law.

-A double taxation avoidance agreement can not be in force between the related countries and a there can not be a provision avoiding the withholding in the tax agreement.


Also payments that are within the scope of Article 94 of Income Tax Law and Article 30 of Corporate Tax Law, unless otherwise implied, the necessary ones must be withheld.

-salaries of employees from abroad (if a foreign person who is employed in another country also works as an employee or executive of a company in Turkey, their earnings are referred to as ‘’self-employment income’’, causing the payments made to that employee to be subject to withholding in accordance with Article 30 of Corporate Income Tax),

-remunerations of businesses regarded as self-employment such as engineering, maintenance, consultancy, education, writing a software, translating,

-payments for lease and rental services (financial or normal rents),

-interests for lending, deposit or similar fundings

-late interests related to the supply of goods from abroad

-payments for incorporeal rights such as copyrights, concession, business titles, trademark or know-how or rents

As well as;

-All kinds of commission payments,

-All kinds of payments regarding advertisements and notifications,

-Payments for overseas transport

-Insurance premium payments,

– Payments for businesses outsourced abroad

-Audit payments,

-Travel costs (hotel, restaurant, transportation, communication etc.)

-Fair participation costs,

-satellite rent payments,






Source: İSMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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