In addition to residency criterion, within a limited scope, nationality criterion also applies regardless of their residency status, Turkish citizens who live abroad and work for government or a governmental institution or a company whose headquarter is in Turkey, are considered as unlimited liable taxpayers. Accordingly, they are subject to PIT on their worldwide income. Non-residents are only liable to pay tax on their income derived from the incomes in Turkey (limited liability). For tax purposes, it is especially important to determine in what circumstances income is deemed to be derived in Turkey. The provisions of Article 7 of the PIT Law regulate this issue.

In the following circumstances, the income is assumed to be derived in Turkey.

Business Profit: A person must have a permanent establishment or permanent representative in Turkey and income must result from business carried out in this permanent establishment or through such representatives.

Agricultural Income: Agricultural activities yielding income must take place in Turkey.

Wages and Salaries:
– Services must be rendered or accounted for in Turkey,
– Fees, allocations, dividends and as such paid to the chairmen, directors, auditors and liquidators of the establishment situated in Turkey must be accounted for in Turkey.

Income from Independent Personal Services: Independent personal services must be performed or accounted for in Turkey.

Income from Immovable Property:
– Immovable must be in Turkey,
– Rights considered as immovable must be used or accounted for in Turkey.

Income from Capital Investment (interest, dividends, etc.): Investment of the capital must be made in Turkey.

Other Income and Earnings: The activities or transactions generating for other income, specified in the PIT Law, must be performed or accounted for in Turkey.

The term “accounted for” used above to clarify tax liability of the non-residents means that a payment is to be made in Turkey, or if the payment is made abroad, it is to be recorded in the books in Turkey.

Source: Revenue Administration

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.

The provisions of Double Taxation Agreements (DTA) are applied to the residents of the contracting countries. Individuals or legal entities who want to benefit from the agreements may request a certificate of residence showing that they are full liable taxpayers from the competent authority of the country in which they are resident.

In this scope; certificate of residence is obtained by residents in Turkey (taxpayers with a full tax liability) who derive income from a party country to a Turkey’s applicable DTA in order to be taxed according to provisions of the related agreement.

– If you are a foreign individual who is a resident of Turkey;

You may get your certificate of residence by applying to The Presidency of Turkish Revenue Administration Department of European Union and Foreign Affairs with a petition, questionnaire for foreigners and your domicile certificate or a copy of your work permit certificate. (If you apply for the certificate to submit to the competent authority of Azerbaijan, in addition to the documents above, you have to submit the DTA forms (5 forms) which can be obtained from Ministry of Taxes of Republic of Azerbaijan or web site of the Ministry “www.taxes.gov.az” filled in except for the part F.

– If you are a legal entity,

You may get your certificate of residence by applying with a petition to

*Large Tax Payers Office Directorate  if  you are a taxpayer of this department,
*The Tax Office Directorate of Ankara, Antalya, Bursa, İstanbul, İzmir, Kocaeli, Trabzon if you are a taxpayer of these Directorates.
*The Presidency of Turkish Revenue Administration Revenue Administration Department of European Union and Foreign Affairs if you are not one of the above mentioned taxpayers or you apply for the certificate to submit to the competent authority of Austria, Switzerland and Saudi Arabia.

Your application will be evaluated by the competent authority and your certificate of residence will be sent to your address by post if approved.

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.