International Taxation and Double Taxation Consultancy

Uluslararası Vergileme ve Çifte Vergileme Danışmanlığı

International Taxation and Double Taxation Consultancy

With the free movement of capital and labour, it has become considerably important to fulfil tax obligations and optimize the tax burden by legislation not only in the country but also in the international arena. Our consultancy services for foreign capital companies and their employees doing business in Turkey, Turkish capital companies operating abroad and their employees provide cost and time savings to companies. Therefore, potential tax risks are largely avoided.

  • Providing consultancy services about the local business environment to entrepreneurs who want to start a business in Turkey or abroad,
  • Establishment of companies, branches and liaison offices with foreign capital in Turkey,
  • Establishment of companies and branches abroad,
  • Providing consultancy and support on local legislation of foreign countries,
  • Determining the tax liabilities of companies and real persons within the scope of double taxation agreements,
  • Establishing tax-optimal structures for the activities to be carried out by researching the tax legislation of the countries,
  • Providing consultancy and support in the process of international assignment of employees,
  • Preparation of income tax returns, insurance and workplace notifications and payrolls of real persons.

International Taxation

One of the most common problems faced by companies operating in different countries and subject to liability by each country’s legislation is the conflict of tax authorities. This leads to double taxation.

To remove this obstacle to international trade, “International Taxation” gained momentum and “Double Taxation Agreements” began to be signed between countries.

Turkey is also a party to many of the double taxation agreements signed in line with the recommendations and regulations of international institutions and organizations such as the Organization for Economic Cooperation and Development (“OECD”), the United Nations and the Council of Europe.

AG Audit with its experienced staff in the fields of international taxation and double taxation agreements; provides consultancy services to domestic and foreign investors on investment transactions and the determination of tax liabilities.

Double Taxation

Double taxation is the collection of multiple taxes on a single tax subject. The rule in taxation is that what is taxable is taxed once. However, sometimes the same tax issue is encountered several times. Double taxation can be done both by the same tax office and by different authorities. An example of the former is when the same tax issue falls under more than one tax liability area within the country, or when central and local governments collect different taxes on the same activity. The latter is because more than one state includes the same tax subject under taxation.

This result often occurs when a person lives in one country, earns an income, or owns property in another country. Here, one of the countries considers it competent to collect taxes because it is the place where the income is derived or the property is located, and the other is the domicile of the income holder. A common example of this is the taxation of multinational corporation profits. To avoid double taxation, taxes paid in a country should be deducted, for example, from the tax payable if revenues were collected in the home country. For this purpose, double taxation agreements are signed between countries and these practices are becoming more common.

In terms of international law, conflicting jurisdictions arise when states choose conflicting principles to tax the same person, based on different legal reasons. Such a practice adversely affects the equality of competition and therefore the level of national welfare.

Different methods have been developed to prevent double taxation and to eliminate its effects if any. In this direction, countries either brought national and one-way regulations or signed an agreement among themselves and preferred to take international measures.


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