Author: Beyza Gunsel Surucu
Introduction
Free Zones are zones that are established to promote export-oriented investment and production, accelerate foreign direct investment and technology access, direct enterprises towards export, and develop international trade. There are many tax advantages provided to taxpayers operating in free zones in Turkey in order to achieve these objectives. One of these advantages is the exemption from stamp tax for documents issued for transactions carried out in relation to the activities of the enterprises in the free zones. Within this context, this newsletter will first review regulations related to the stamp tax. Next, the stamp tax liability of the companies in the free zones will be evaluated. Finally, the rulings of the Turkish Revenue Administration on the subject will be reviewed.
Main Regulations Regarding Stamp Tax
Pursuant to Article 1 of Stamp Tax Code No. 488 (“STC”), documents indicated in Table (1) attached to STC are subject to stamp tax. The term “documents” used in this code defines (i) the documents created by adding a signature, or a sign in lieu of a signature, that may be produced in order to prove or designate anything; and, (ii) documents produced as magnetic and electronic data to use electronic signature. Table (2), attached to STC lists documents exempted from stamp tax.
