E-commerce firms without offices in Turkey under probe

Published 23.04.2017 23:30
Updated 23.04.2017 23:34

Finance Minister Naci Ağbal announced that the ministry is conducting a tax probe into international e-commerce companies in Turkey that have not paid any taxes, and notices have been sent to the relevant parties.

Minister Ağbal, speaking to local reporters about the taxation of international e-commerce firms, drew attention to the increasing weight of e-commerce in the circulation of goods and conducting of trade, which has become an important element triggering competition in international trade. "The Ministry of Finance has adopted the principle requiring a company that earns money in the country to pay taxes, and accordingly Turkey has worked on a legal assessment and technical survey on the taxation of international e-commerce companies conducting business in the country. The most critical concept in that agreement is the location of the company's office, Ağbal noted.

However, he stressed that it is not possible to find the office of an e-commerce business. But, those firms operating in Turkey bring permanent representatives to the country. The Ministry of Finance believes that a firm that conducts commercial operations, even through intermediate representatives, and makes money in Turkey has the right to be taxed. As a result of the investigations, the relevant parties have been sent notices with regards to the amounts earned in Turkey and for which taxes have not been paid.

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