During the last several years, Turkey has become one of the most important trading hubs in Eurasia. Many foreign investors open companies in industries likeautomotive, manufacturing and tourism thanks to the large markets the products from these sectors are exported to. Turkey is a country in which investors can set up small or large companies depending on their budget, which is why requesting accounting services is a good option to keep this budget under control. Moreover, complying with the local tax legislation implies hiring an accountant or an external accounting firm in Turkey.
Foreign investors and citizens relocating to Turkey for various reasons are liable to pay their taxes here. The main taxes imposed in Turkey are:
- the personal income tax which applies to individuals;
- the corporate tax which applies to the profits of a company;
- the value added tax (VAT);
- the special consumption tax;
- the property tax.
There are other taxes that must be paid, depending on the activities the companies undertake, which is why accounting services are recommended. Additionally, companies can benefit from tax minimization solutions, as the Turkish government has enabled various tax incentives and grants for certain companies. Our Turkish company formation consultants can explain the tax incentives applicable in this country.
You can find out more about our accounting services from the infographic below:
Services provided by our accountants
The accountant will prepare financial statements fortax returns, make an audit, will be responsible for bookkeeping and financial planning and other different accounting services. Our consultant can help you with services such as:
- tax registration and compliance;
- annual tax filings;
- consolidation of financial accounts;
- tax returns filings;
- debt monitoring and risk assessment.
You can also rely on us if you need to obtain an EORI number for trading activities with companies in the European Union.
Tax registration and compliance services in Turkey
The first step to take after completing the company formation procedure in Turkey is to register the company for taxation purposes. This step is completed with the Turkish Revenue Administration. The company’s administrator is required to file information on the recently incorporated company. When the administrator is not available, this task can be completed by our local agents who can also handle the business registration procedure.
When it comes to registration, it is also useful to note that companies can register voluntarily for VAT in Turkey. It is advisable to complete this procedure together with the tax registration step in order to avoid bureaucracy and the requirement of filing more documents when the company reaches the mandatory registration threshold.
Through our accounting services in Turkey, foreign investors can rest assured that professional services are provided to them in accordance with the legal requirements imposed under the tax legislation. With respect to the tax reporting compliance requirements companies in Turkey must comply, we mention the following:
the tax year coincides with the calendar year in Turkey, starting on the 1st of January and ending on the 31st of December;
companies are required to file individual or consolidated financial statements in accordance with the New Commercial Code of 2013;
certain companies are also required to file audited financial statements provided that they meet certain criteria;
public companies must comply with the International Reporting Financial Standards (IFRS).
It should also be noted that only certified accountants and auditors are allowed to handle the accounts, respectively audits in Turkish companies. If you want to open a company in Turkey and need advice on finding a certified accountant or auditor, feel free to ask our consultants.
Bookkeeping services in Turkey
Another important part of the accounting services you can rely on us for your companyin Turkey refers to bookkeeping. This is one of the most important parts in the accounting of a business as it ensures the day-to-day registration of invoices and management of documents. Bookkeeping also implies updating the financial records and maintenance of accurate and correct financial information. This is why many firms prefer to outsource this part of the accounting to an outside firm. Here are the main documents that will be prepared as part of our bookkeeping services for Turkish companies:
- sale and purchase invoices;
- purchase orders;
- supply invoices;
- VAT returns;
- various contracts.
It is important to know that you can rely on us for complete company registration and accounting services in Turkey.
Payroll services in Turkey
Setting up the payroll is one of the first and most important tasks of the accounting department. Creating the payroll starts right after the company is registered, as the managers and/or directorsof the company can also act as employees. Payroll implies registering the company and the employees with the social security authorities, with the Revenue Administration, with the pension and healthcare funds. Then, all the employment contracts must be registered in accordance with the Labor Code. Apart from this, payroll also implies:
- preparing monthly payslips;
- filing monthly and annual employment-related tax forms;
- transfer of salaries and other wages to employees’ accounts;
- withholding the taxes and contributions due to the tax authorities;
- preparation of annual leave documentation;
- handling all other employment matters and changes in the number of workers in a company.
You can obtain more information on our accounting services from specialized consultants. We remind you that our core services refer to Turkish company formation, however, we want to offer complete solutions to foreign investors which is why we work with a team of accountants and auditors.
Audit services in Turkey
As mentioned earlier, certain Turkish companies are subject to statutory audit requirements and we come to the help of such companies with tailored audit services.
In order to be subject to the statutory audit requirements, one should know that:
- a company’s financial statements for the last 2 financial years will be considered;
- the total assets of the company are equal or exceed 35 million TRY in a financial year;
- the annual net sales of the company must be at least or exceed 70 million TRY;
- the company must have at least 175 employees.
At least 2 of the criteria mentioned above must be met for the Turkish company to be subject to a statutory audit.
Tax minimization methods – our accountants in Turkey can help
Many local and foreign entrepreneurs in Turkey decide on cutting the amount of taxes that need to be paid for their firm. This is where tax minimization methods can be optimal solutions for different kinds of companies in Turkey. Our accountants in Turkey can provide the necessary information about the available tax minimization tools that can be adopted in your company. For instance, a great solution refers to the payment of credits made in advance. Also, thinking of donations and charities in Turkey allows entrepreneurs to cut the amount of taxes. Plus, the reinvestment of profits in a firm in Turkey can be subject to varied tax reliefs. A tax minimization plan can be an optimal solution to our clients, so if you would like to know more about the choices you have for cutting the amount of taxes, please feel free to address your inquiries to one of our Turkish accountants. We can present you with a tax minimization plan before applying any method.
Personalized accounting services in Turkey
Our team of accountants in Turkey can customize their services according to the business needs of company owners. Personalized accounting services in Turkey are provided to those interested in more than just the main accounting aspects related to a firm. For example, we can provide support for different financial reports that can be solicited by the Central Bank of Turkey, for instance. Moreover, our team of accountants in Turkey can assist companies when internal or external audits take place. The quarterly or annual financial reports that need to be submitted can be overseen and verified by our team of accountants in Turkey. If you would like to know more about the tailored services we can offer, please feel free to get in touch with our team and solicit our support and guidance.
One accountant or a team of accountants?
You can choose to hire one accountant if you have a small business or an accounting firm if you run a large company. A team of accountants with different backgrounds can provide a wide range of financial services and will find the best solutions to grow your profit and lower your costs. The accountants will inform you anytime about the income, costs and taxes and they will offer you confidentiality regarding the financial documents.
An experienced team of accountants can offer you studies and analysis in order that you can choose the best ways to manage your business and to obtain the best results. Besides this information, the team provides regular updates related to the Turkish legislation and regulations that can be changed year after year and can have a great impact on your business outlook.
The video below shows the accounting services offered by our agents in Turkey:
Why choose our accounting services?
We offer accounting services, at competitive prices, to foreign businessmen who open a company in Turkey.
After you register a new company in Turkey, you will need to hire an accountant in order to manage the financial issues and offer solutions to lower the costs for your business. A good accountant will help you save money and make your company more efficient in terms of costs. In a short time, if your company is managed well from all points of view, the profit will increase. An experienced accountant knows all the rules and regulations related to your business activity and will offer you the best advice in order to protect your money.
FAQ about accounting in Turkey
1. How much tax do you pay in Turkey?
The corporate income tax, the personal income tax, the property tax, the VAT, and the special consumption tax are imposed in Turkey. These taxes must be observed by citizens and company owners in Turkey.
2. What types of accounting services are available in Turkey?
Bookkeeping, payroll, tax filings, annual financial statements, tax registration, and compliance and tax returns are among the main accounting services our company can provide. We have a professional team of accountants in Turkey that can be hired for your company.
3. How do I register for taxation in Turkey?
Our consultants can help local and foreign entrepreneurs register for taxation with the Turkish Revenue Administration. The VAT registration is important in Turkey, so you can solicit help from our team.
4. How is the tax year calculated in Turkey?
The tax year in Turkey is the same as the calendar year. It starts on the 1st of January and ends on the 31st of December.
5. Can I get help with annual financial statements in Turkey?
Yes, the annual financial statements are important documents in a firm. These reflect all the financial aspects of a company. Our team of accountants in Turkey can offer complete support in this matter.
6. Are Turkish accountants certified?
Yes, our accountants in Turkey are certified and registered with the Union of Chambers of Certified Public Accountants of Turkey. They can provide a wide range of accounting services.
7. Can I ask for bookkeeping services in Turkey?
Yes, bookkeeping is the most important part of the accounting services offered to a company in Turkey. Correct and complete financial information is kept with the help of bookkeeping.
8. What is payroll?
Payroll involves all the important aspects of company employees, starting with the registration with social security and ending with the transfer of salaries. Preparing the monthly payslips to enter our attention.
9. Can I ask for audits in Turkey?
Yes, audits in Turkey can be solicited from our team of accountants. All the financial documents of a company in Turkey can be attentively verified by our consultants. If the total assets of your company in Turkey exceed TRY 35 million in a financial year, then audits can be performed.
10. Why choose our accounting firm in Turkey?
Instead of having an accounting department and extra costs in the company, you might consider the services of an accounting firm in Turkey. We have certified public accountants and we can provide tailored accounting services for any company, with respect to the local legislation and also the International Financial Reporting Standards.
If you want to start a business in Turkey and you need accounting services, you can contact our company formation agentswho can help you hire the best accountant for your business, at low costs. If you have a large business, we can recommend you an accounting firm or a team of accountants.
Call us now at +90 532 351 66 77 to set up an appointment with Cagatay Altunsoy, one of our specialists in company formation in Istanbul, Turkey. Alternatively you can incorporate your company without traveling to Turkey.
As a client of CS Yonetim, you will benefit from:
- 24 hour response time guaranteed;
- cost- efficiency;
- dozens of articles and free information on the Turkish structures.