Recent developments

On February 12, 2015, the Turkish Minister of Finance Mehmet Şimşek announced the government’s intention to impose corporate income tax and VAT on non-resident Internet companies by introducing the concept of “electronic taxpayer” to the Tax Procedure Law. The stated objective is to collect tax from social network platforms and other non-Turkish companies generating income selling online advertisements directed to Turkish consumers.

While acknowledging that Turkey’s network of tax treaties could limit the country’s ability to tax non-resident Internet companies, Şimşek noted that the Turkish government is working to “resolve the issue.” He also stated that unnamed Taiwanese companies, presumably selling online advertisements, had already agreed to become Turkish taxpayers.


Although there is no publicly available draft on implementation of the “electronic taxpayer” concept or imposing VAT on income derived from selling advertising space, Şimşek’s statement indicates that taxation of digital / Internet companies remains a priority for the Turkish government.