If a company is promoted abroad through foreign advertising companies, will tax be deducted on the payments to be made to the advertising company? (In Turkey)

In the event that advertising services are within the scope of self-employed activities such as advertisement design, implementation, strategic planning, media planning and media strategy, corporate tax must be deducted from the payments made to organizations abroad in return for these services, rather than publishing the advertisement and advertising services taken for the purpose of promoting a company abroad directly with announcement and advertising.

If there is an agreement on the prevention of double taxation between the Republic of Turkey and country to which payment made (if any), the issues must be evaluated in terms of the provisions of the agreement.

Moreover, if the company has commercial film prepared to foreign company to be used in Turkey, tax will be deducted from the payments in the same scope.

Source: GİB
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