31.05.2021

– In case the computer programs purchased from companies abroad are sold to final consumers without making any changes and/or duplications or used in the business in the same way, the income obtained is in the nature of commercial income and no tax deduction will be made on such payments.

– In the event that the rights of a computer program such as reproduction, modification, distribution to the public, display, etc. are purchased within the scope of “Copyright”, an intangible right will be obtained for the purchaser and a tax deduction of 20% will be made from the said intangible rights payments to be made to the company abroad, as per the Council of Ministers Decision No. 2009/14593.

– If a computer program is specially prepared for companies abroad to be used in the business, since the income earned by the company residing abroad is self-employed, a 20% tax deduction is required in accordance with the Council of Ministers Decision No. 2009/14593.

– If there is a double taxation agreement between Turkey and the country of residence of the limited taxpayer institution, and a lower rate is determined in this agreement (usually this rate is determined as 10% in agreements), this rate will be taken into account.

Does the acquisition of the computer program by downloading it directly from the Internet with a password lead to a different practice regarding tax deduction?

The case of acquiring computer software products by activating them with a password downloaded from the internet after they are imported from customs in a CD, floppy disk, or carrier media product, or the acquisition of the computer program by downloading the computer program directly from the internet with a password, does not cause any difference in the taxation of payments to be made abroad.

In the payments made to the countries that have a double taxation agreement with Turkey, if there are provisions in the relevant agreement, they will be taken into account first.


Source: Revenue Administration of Republic of Turkey – Translated by Karen Audit – The rights of this translation belong to KarenAudit and unauthorized use is prohibited.
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.