Will be there any stoppage for the corporations constituting partnerships acting as a consortium in Turkey?
Will be there any stoppage for the corporations constituting partnerships as a consortium?
There is 3% stoppage in progress payments for the corporations engaged in construction and repair works lasting for more than one calendar year.
In the construction and repair works (including the supply of machinery, equipment and vehicles) extending to years undertaken by the companies acting as a consortium, the followings are required;
– The consortium agreement between the companies must comprise the requirements for the definition of “consortium”,
– In the agreement between the administration and the consortium, the whole work should be divided into parts at the sub-stage and the price to be paid for each part should be determined accordingly.
– In the contracts involving machinery, equipment and vehicle supplying abroad, payments made for the tendered job, will be evaluated separately, limited to the work undertaken by the consortium member companies in terms of tax deduction, in the event that supplying process is carried out directly by the head office abroad without the contribution of workplace in Turkey.
In construction works tendered in this way, the work undertaken will be divided into sub-stages as a whole and a tax will be deducted for the part of construction and repair works extending to more than one calendar year.
Source: GİB
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