Over the years Turkey has become more interesting for investors due to its booming economy, favorable location and wide range of industries and resources. However the language barrier and the rules applying in Turkey mean that developing business activities in Turkey and executing M&A deals can be quite challenging for companies. Foreign investments require specific expertise and the continuous monitoring of latest developments. Our Turkish Desk focuses on these challenges and provides services for both inbound and outbound situations. Let us help you to bridge the divide between Europe and Asia.
Global Tax Services
The Turkish Desk is part of the tax and legal practice of Meijburg & Co in the Netherlands. Meijburg & Co is part of KPMG’s international network. KPMG currently operates in 147 countries and employs 219,000 people. Such a large network means there is a vast reservoir of knowledge available to us to assist our clients with their global expansion. Our global lines of communication are short, so we adapt quickly to changing circumstances and new developments in both international and local tax law. The close collaboration with our KPMG office in Istanbul ensures that we can combine our efforts and make Turkey your new home of (outbound) investment.
We also have extensive experience with Turkish multinational clients that have expanded their business internationally using the Netherlands as their base (inbound structures). Turkish investors often prefer the Netherlands as an investment location, given the advantages of the Netherlands as a holding location, its favorable tax treaty network, and also certain advantageous provisions contained in the Turkey-Netherlands income tax treaty. The Netherlands has also reinforced its advantageous tax position by allowing easy application of the participation exemption regime and by the introduction of a withholding tax exemption (subject to certain conditions) on dividend distributions to companies resident in a treaty country (including Turkey).
What does the Turkish Desk offer?
Since 1986 the Tax Treaty for the Avoidance of Double Taxation between the Netherlands and Turkey has been in force. This treaty ensures that residents of either country are not confronted with double taxation. Both parties have also signed the Multilateral Instrument (MLI), which will soon apply to the treaty. The Turkish Desk has expertise in many areas, for example the double tax treaty, interpretation of the MLI and application of the Dutch withholding tax exemption. Through our Turkish Desk and knowledge in these areas we assist Dutch investors and MNEs with setting up solid and efficient investment structures in Turkey and Turkish companies with setting up their international structure through the Netherlands.
The services offered by our Turkish Desk include:
- A single point of contact and liaison for tax-related services related to Turkey and the Netherlands
- Tax compliance for companies and branches in Turkey and the Netherlands
- Reviewing corporate structures based on latest developments in international tax law (e.g. BEPS, MLI and EU directives)
- Advice on transfer pricing policies and local transfer pricing documentation obligations
- Tax due diligence in both Turkey and the Netherlands
- Tax structuring for investments in Turkey or in the Netherlands (both outbound and inbound)
- Updates on local tax developments and changes to tax treaties affecting Dutch businesses in Turkey and vice versa, which is key to staying compliant with local tax obligations.
Feel free to contact us if you have any questions about investing or setting up business activities in Turkey. We look forward to assisting you in expanding your business to Turkey or to the Netherlands. Our Turkish Desk team includes Turkish-speaking professionals.