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Revised November, 2022 – Resource, Turkey iResidence

Fighting the informal economy and volunteering for taxes to take further steps to increase compliance was  İntroduced. The audit area of the Ministry of Finance has been expanded. Increasing voluntary compliance with tax, compliance with tax reducing the cost and effectively using the informal economy for the purposes of fighting in this way, Tax No. 213 Article 370 of the Code of Procedure avails “Invitation for Clarification” the application is regulated by the Turkey Tax Revenue Directorate. Application even though it started since 2017 from the beginning, the institution couldn’t exactly process it.

Amendments made by Law No. 7.194 and with the General Communiqué of the Tax Procedure Law No. 519 the effectiveness of the application is being tried to be increased. Within the scope of the issues determined by the application of the invitation for explanation regarding the determinations made by the administration, first of all by requesting an explanation from the taxpayers, the taxpayers contributing to the determination of true nature of the events, increasing voluntary compliance with tax and taxpayers with the administration the aim is to ensure that disputes between them are reduced.


The Department of Revenue Administration has been providing technology infrastructure for years he has made great investments and continues to do so. Incompatibilities between data Decoupled using technology it is detected and the process is started. The institution of the invitation to explain within the scope of the 16 topics I have included below, Income Through the programs implemented by the Administration of it is detected and the process is started.

1- Detecting incompatibilities in the information contained in the BA-BS forms  have been reported,

2- Between credit card sales information and VAT declarations non-compliance detected,

3- Annual declaration and Concise and Insurance Premium Declarations those who are found to be incompatible between (Concise and Insurance Together with the unification of Premium Declarations in this regard incompatibilities have been minimized),

4- A lawyer who declares income below the Minimum Wage Tariff, self-employed professionals such as financial advisors,

5- By law on Annual Income and Corporate Income Tax declarations taxpayers who exceed the established statutory discount rates,

6- Those who were found not to have made withholding payments on profit distribution (As of today, 10% when companies distribute profits they have to withhold),

7- The provision of the law on the deduction of losses of the previous year non-compliant taxpayers,

8- Taxpayers who do not show their affiliate earnings in the relevant account,

9- Turkish real estate, subsidiary shares, etc. with the exception of gain on sale those who commit the relevant irregularities (the scope of the exception and the 2-year the calculation of the time is important),

10- Taxpayers who appear risky from the point of view of implicit capital,

11- Taxpayers who do not calculate interest on receivables from partners (Not only interest, but also value added tax on interest it is necessary to calculate),

12- Gains from sale of limited liability company shares non declarants (Law on the sale of shares of a joint stock company tax on earnings for those who meet the conditions established by are not taken),

13- Who has declared the Turkey real estate purchase and sale price incomplete taxpayers who may be (in this context in the first half of this year 7,000 people were invited to explain),

14- Increase in the value obtained in connection with the sale of real estate those who do not declare their earnings (what they bought those who dispose of their real estate in Turkey within 5 years, get they pay income tax related to the increase in value of their earnings they have to. who received income in this scope in 2021 letter to 110,000 people to submit declarations posted),

15- Not declaring the amounts of rental income of property in Turkey or incomplete-erroneous declaration employees (Revenue Administration, municipalities, water, natural gas, with information received from electricity and telephone companies, rent although it is given, the rental income of undeclared properties is very easy to identify),

16- Fake or misleading document due to its content (nylon those who are found to be using (invoice) (Found to be used the amount of each document does not exceed 148.000 TL or this total goods and services in the relevant year, even if the amount exceeds in terms of whether 5% of their purchases are exceeded evaluation is being carried out. Taxpayers for different years a fake or misleading document in terms of its content there are indications that it may have been used in the case of the invoice limit set for the years, or conditions that the rate of 5% is not exceeded as of each year it will be evaluated separately).

Taxpayers Turkish citizens and foreigner nationals in Turkey now are closely monitored with the support of  Technology in many areas that is included in the tax system.


After recent changes of the institution of invitation to explain how much to increase the effectiveness, commissions it will depend on whether he will take responsibility or not. This an institution that does not have an accountant, trade or freelance he is not an expert in the profession and mostly rents real estate. the transaction related to the sale of real estate in Turkey is subject to tax and less punishment for citizens who do not know that they are not useful because it provides the solution of the issue by cutting what is happening. Income and Corporate Tax payers mostly a certified public accountant and financial advisor since they are certified public accountants, the explanation above showing sensitivity to the issues to be invited, so they don’t make their taxpayers make mistakes.

Taxpayers from the point of view of the institution of the invitation to explain, as of today where are the taxpayers who only use fake invoices had been run for, but now expanded to the ranges specified 1-16 above.