According to Article 2 of Law No. 4358 on the Popularization of Tax Identification Number Usage, Legal persons must have a tax number in order to carry out certain transactions, even if they are not taxpayers. According to Article 8 of the Tax Procedure Law No. 21 , the Ministry determines the procedures and principles regarding the obligation to obtain and use a tax number. In this context, foreign individuals or legal persons and Turkish legal entities that are still in the establishment phase will submit a tax number in order to be able to carry out relevant transactions in Turkey. These legal entities, who have not yet engaged in any activities that generate tax liability in Turkey, will obtain a potential tax number in order to become potential taxpayers.
Potential tax number is given to foreign individuals and legal entities operating directly or consumed in Turkey as well as Turkish citizen real and legal persons. Foreigners are required to obtain a potential tax number for activities such as purchasing a vehicle, notary transactions, opening a bank account, establishing a company, and other similar transactions in Turkey. If a power of procuration is given through notary publics in Turkey, this number must also be obtained.
After obtaining the potential tax number, if any tax liability arises, the same number will continue to be used as a tax identification number. In other words, after the person becomes a taxpayer, a new number is not given.
Individuals and sole proprietors can use their own Turkish Republic Identity Numbers (T.C) as their tax identification numbers when conducting transactions on behalf of their company. Foreign individuals, on the other hand, should apply with the original passport, a photocopy of the passport's identification information page, and a request letter for a tax identification number.
Legal entities also need to obtain a separate tax identification number. According to Turkish laws, for companies to be established, the processes of application for establishment and obtaining a potential tax number are intertwined. Along with the establishment application, Istanbul Chamber of Commerce provides a potential number. Once the company is established, it becomes liable for Corporate Tax, and the same number can be used as the tax identification number.
It can be obtained through online application or physical application. In order to make an online application, the foreign legal entity must have entered Turkey at least once. Online applications can be made through the website of the Interactive Tax Office. Foreign legal entities can obtain the potential tax number only by applying to the tax office through their proxies.
According to Article 2 of Law No. 4358 regarding the widespread use of tax identification numbers, it is mandatory for individuals and legal entities who are involved in transactions determined by the Ministry of Finance to have tax identification numbers.
The Ministry of Finance has made the necessary regulations regarding the obligation to use tax identification numbers through general communiqués on tax procedure laws numbered 240, 247, and 262, as well as general communiqués on tax identification numbers numbered 1, 2, and 3.
- Company Formation:Individuals or legal entities who want to establish a joint-stock or limited company in Turkey are required to obtain a tax identification number.
- Banking Transactions:: Foreign legal entities and individuals need a tax identification number to be able to open a bank account.
- Vehicle Purchase:A tax identification number is required during the contract stage of purchasing a vehicle.
- Real Estate Acquisition:Individuals and legal entities who buy, sell, or register mortgages on real estate properties or construct buildings and register them at the Land Registry Office are required to provide their tax identification numbers during these transactions.
These transactions, as mentioned, have been made mandatory to have a tax identification number by the Ministry of Finance in Turkey.
Nazli OZKUL
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