Liaison offices are established and operated in accordance with the regulations in the Foreign Capital Framework Decree and the regulations in Communiqué on Foreign Capital Framework Decree issued on the basis of this Decree. According to current legislation, liaison offices cannot carry out activities in Turkey and cannot earn or transfer profits and must cover all costs in foreign currencies.
The place of liaison offices in the context of the above definitions is accepted as its workplace and the authorized person carrying out the works are accepted as permanent representatives, since trading is prohibited by law for the liaison offices in Turkey.
Within the framework of these explanations, if the liaison office operates within the framework of the relevant legislation, in other words, it does not engage in commercial and other income-generating activities, the followings are not required;
– Constituting corporate tax liability,
– Notification for starting to work,
– Submitting a corporate tax return,
– Bookkeeping in accordance with the provisions of the Tax Procedure Law.
In the event that the office carries out a commercial activity, it is clear that all these obligations will be fulfilled accordingly.
On the other hand, since the liaison offices are responsible for stoppage over the workers’ wages and workplace rental payments, these offices are obliged in terms of withholding.
Source: GİB
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