International Tax · Cross-border WHT
Withholding tax on cross-border service, royalty, and interest payments
Turkey levies up to 20% withholding tax on many payments to non-residents — consulting, royalties, interest, professional services. Treaty relief often reduces this to 5–10%, but only if the right forms are filed at the right time. We handle both.
Who this is for
- Turkish companies paying foreign consultants, contractors, agencies
- Licensing payments to foreign IP holders (royalties)
- Interest on intercompany or third-party foreign loans
- Foreign professional services (legal, engineering, design, marketing)
What's included
- Payment-type classification (service vs. royalty vs. interest — rates differ)
- Treaty eligibility check and rate confirmation
- Certificate of Residence coordination from payee
- Monthly muhtasar filing with correct withholding rate
- Annual paid-tax certificates for the payee's home-country credit
- Gross-up vs. net contract advisory for future agreements
Scope & SMMM disclosure
We deliver the full engagement under SMMM (Certified Public Accountant) scope — preparation, filings, advisory, and ongoing compliance. For YMM certification reports, statutory audits, and court representation we coordinate with vetted partners. You get one point of contact and one invoice.
Frequently asked questions
Why does payment-type classification matter?
Under most treaties, royalties are WHT-bearing but service fees are not (if no PE). Misclassification costs you 10–20% in unnecessary WHT.
Do I need to gross up the payment?
Depends on the contract. If the contract says "net of Turkish tax" you gross up; otherwise WHT is deducted from the invoice. Clarify before signing.
Related services
Dividend withholding tax for foreign shareholders
Turkey's statutory dividend WHT is 15% (raised from 10% at end of 2024). Most double tax treaties reduce it to 5–10% when you have a valid Certificate of Residence. We file the reduction and issue all documentation.
Learn more →Double Tax Treaty application & Certificate of Residence
Turkey has 85+ active double tax treaties. Claiming reduced rates on dividends, interest, royalties, and service fees requires the right paperwork — filed in the right order. We handle both the Turkish side and coordinate with your home country.
Learn more →Ready to start?
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