What is the nature of application licenses for services such as programs and family protection passwords imported by a telecommunications company to provide the safe use of the e-mail service? Will there be any stoppage on the payments made for these services? (In Turkey)

In the second paragraph of Article 30 of the Corporate Tax Law No. 5520, which regulates the tax deduction in the limited liability, corporate tax deduction is made on the amounts paid or accrued in cash or on account in  return for sale, transfer and assignment of copyright, concession, invention, operation, trade name, trademark and similar intangible rights regardless of whether it is included in commercial or agricultural income.

Within the framework of this regulation, tax deduction is required for the royalties paid to the foreign company for the licenses related to the services providing the secure use of the e-mail service.

Source: GİB
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