Turkey Tax Agency Issues Guidance on Cooperatives

The Turkish Revenue Administration April 4 issued Publication No. 495, on tax regulations for cooperatives. Topics covered include: 1) definitions, features, and types of cooperatives; 2) the corporate tax exemption for cooperatives other than consumption and transportation cooperatives, subject to conditions; 3) the 10 percent tax deduction on dividends distributed to cooperatives on shares held in fully tax-liable entities; 4) the 20 percent withholding rate on rental payments made to cooperatives on rentals of real property; 5) recordkeeping requirements for exempt and non-exempt cooperatives, and for economic enterprises belonging to cooperatives; and 6) the application of VAT to certain construction ...