Doing business in Türkiye opens up great opportunities, but it requires close attention to local legislation. Even if you have an accountant, the company's founder bears the ultimate responsibility for its financial security. This guide will help you understand the primary risks, audit your accountant's performance, and avoid costly mistakes.
Top 5 Risks for Russian Founders in Türkiye
- Differences in the tax calendar and rates. Deadlines for filing tax returns and paying taxes in Türkiye differ from those in Russia. Missing a deadline by even a single day risks penalties.
- Errors in primary documentation. An incorrectly drafted invoice or completion certificate can lead to the disallowance of expenses and additional tax assessments.
- Improper handling of VAT (KDV). Türkiye has a complex system of VAT rates and exemptions. Errors here are among the most frequent causes of tax penalties.
- Ignoring social security requirements (SGK). Social security contributions must be paid on time for both employees and founders. Delays are subject to severe penalties.
- Lack of communication between the Turkish accountant and the owner. The founder often discovers problems after the fact, once a penalty has already been imposed.
How to Audit Your Accountant: A Mini-Checklist
Ask your professional these questions. If they cannot give a clear answer, it is a cause for concern:
- Do you send me the tax calendar in advance for the quarter/year?
- Which returns and reports must we file in the near future, and by what dates?
- How do you confirm the filing of tax returns and reports (scanned receipts, official submission confirmations)?
- Which documents do I need to prepare for you by a specific date?
- What measures are we taking to legitimately optimize our tax burden?
What to Do If You Receive a Tax Authority Notice?
- Do not ignore the letter. In Türkiye, the tax authorities act swiftly.
- Do not answer complex questions on your own. Any statement can be used against you.
- Contact your accountant or advisor immediately. Provide them with all relevant documents.
- Do not sign any official reports or minutes without a legal review.
Simple Ways to Legitimately Lower Your Tax Burden
- Utilize incentives for new companies (Investment Incentive Certificate / Yatırım Teşvik Belgesi) if you are investing in manufacturing or technology.
- Properly categorize expenses: account only for those that are directly related to the company's business activities.
- Leverage the Double Taxation Treaty between the Russian Federation and Türkiye to optimize dividend taxation.
Conclusion
Your financial security in Türkiye depends on a systematic approach and diligent oversight. Do not rely solely on your accountant—stay informed about key processes.
Would you like a personalized assessment of your situation? Write to us—we will help evaluate your risks and provide a practical solution.