ANKARA: Turkish Minister of Finance Mehmet Şimşek announced the government’s intention to impose corporate income tax and VAT on non-resident Internet companies by introducing the concept of “electronic taxpayer” to the Tax Procedure Law. The stated objective is to collect tax from social network platforms and other non-Turkish companies generating income selling online advertisements directed to Turkish consumers.
While acknowledging that Turkey’s network of tax treaties could limit the country’s ability to tax non-resident Internet companies, Şimşek noted that the Turkish government is working to “resolve the issue.” He also stated that unnamed Taiwanese companies, presumably selling online advertisements, had already agreed to become Turkish taxpayers.
