Establishing Liaison Office
18 Nisan 2020, 21:05
Establishing Liaison Office
One of the ways of entering into Turkey markets for foreign-based commercial enterprises is setting up liaison offices, which are specified in Foreign Direct Investment Law No. 4857,
A liaison office (also called representative office), can be defined as an office established in a foreign country to act as a channel between the parent company and the entities in the country it is established. These offices can only engage in liaison, and do not perform any commercial activities that generate revenue or profit, and the all expenses of a liaison office shall be covered by the foreign based company.
ACTIVITIES OF LIAISON OFFICES
- Collecting information relating to market;
- Representation and Hosting
- Control, Inspection and Provision of Local Suppliers
- Technical Support
- Communication and Transfer of Information
- Regional Management Center
TAX EXEMPTION
- As liaison offices are not in the commercial enterprise status and do not gain any revenue or profit they are not subject to VAT (Value added Tax) and corporate tax.
- Personnel of liaison offices that paid by foreign based company with foreign currency brought from abroad are exempt from income tax.
- And also no stamp tax deduction shall be made.