Foreigners, who want to carry out commercial activities in Turkey, are required to get a Turkish tax number. In addition, foreign citizens, who want to work in company shareholding, board of management assignments, and all commercial business activities, should also get a Turkish tax number. Turkish tax number is a ten-digit number used for financial transactions, just like an identification number. Foreign citizens in Turkey are required to obtain a tax number for financial transactions such as opening a bank account and purchasing real estate.
To get a Turkish tax number, foreign citizens can apply to any tax office in Turkey with their passports. The process of obtaining a tax identification number usually takes between 10 and 15 minutes. After obtaining the tax number, you can open a bank account and begin official transactions. Having a tax number does not mean you will necessarily pay tax in Turkey. However, it is essential for certain transactions, such as opening a bank account. For more information about how and when taxes are to be paid in Turkey, you can contact us and have detailed information.
How to Get a Turkish Tax Number Online?
According to the statement made by the Turkish Revenue Administration and Migration Office, within the scope of Covid-19 measures, the tax identification number application of foreign nationals can only be made digitally via the internet.
To get a Turkish tax number, you can follow these steps:
- Visit the interactive tax office of Turkey http://ivd.gib.gov.tr
- Click on the “Potential tax identification number for foreigners” section.
- Complete the form on the screen
- After filling out the form, indications, and documents should be uploaded on the screen for the application.
- Upload your passport to the system
- If the passport is not written in Latin letters, a sworn translation must be attached.
- Click the “OK” button
A potential tax identification number is defined for foreign citizens who apply through the interactive tax office. With the obtained Turkish tax number, all transaction process can be carried out within the specified conditions. Foreigner citizens who want to obtain a permanent Turkish tax number must apply in accordance with the conditions published on the official website of the Turkish Tax Offices. Passport declaration is also obligatory in order to carry out tax identification number procedures for foreigners.
In Which Transactions Can Foreign Citizens Use Turkish Tax Number?
- Banking and financial service transactions
- Bill subscription transactions
- Real estate and municipal tax debt payments
- Residence permit fee payment procedures
- Execution – Bankruptcy proceedings
- Driving license application procedures
- Financial transactions are made by public or private institutions.
Apart from these, foreigners who take tax liability can perform all the transactions they can do on behalf of the individual through their tax identification numbers.
Obtaining a Tax Identity Number for Foreigners in Turkey
For foreign citizens, transactions such as making any financial transactions during short or long-term residence in Turkey, are only possible if a tax identification number is obtained. Obtaining a Turkish tax identification number for foreigners is obligatory for transactions such as opening a bank account, making purchases and sales, and carrying out profit-oriented businesses through commercial activities.
Foreign citizens who want to obtain a tax identification number have been abolished due to the Covid-19 measures, to make transactions through notaries. Instead, they must apply through the interactive tax office through potential tax number transactions. Today, it is only possible for foreigners to obtain a tax identification number by applying online. Foreigners who want to carry out financial and commercial activities in Turkey must complete their tax identification number transactions completely.
Tax Liability of Foreigners
Capital companies in Turkey are obliged to pay corporate tax (22 percent). However, due to the earnings and revenues of individuals during the year, income tax liability arises. We can also say that people residing in Turkey or companies headquartered in Turkey are taxed on the income they obtain from abroad. In addition to these, there will be value-added tax (VAT), special consumption tax (SCT), and stamp duty, which vary according to the concrete event.
Of course, apart from these, there may be tax exemptions, exemptions, or tax incentives for companies or individuals. There are international agreements and domestic legislation regulations in order to prevent double taxation.
