What is Turkish transfer pricing?
Transfer Pricing (Transfer Fiyatlandırması) is the Turkish tax framework regulating prices charged between related parties (intra-group transactions), governed by 5520 sayılı Kurumlar Vergisi Kanunu (KVK) Madde 13 and the implementing Transfer Fiyatlandırması Yoluyla Örtülü Kazanç Dağıtımı Hakkında Karar. Turkey adopts the OECD arm’s-length principle: transactions between related parties must be priced as if conducted between independent parties. Non-compliant pricing results in “örtülü kazanç dağıtımı” (concealed profit distribution) with KVK Madde 11 disallowance plus penalties.
Related party definition (KVK m.13/2)
- Shareholding: direct or indirect 10%+ ownership.
- Management control: board representation, voting control.
- Family relationships: spouse, blood relatives up to third degree.
- Common shareholders: entities under common ultimate ownership.
- Tax havens (vergi cenneti): all transactions with low-tax jurisdictions deemed related-party regardless of actual relationship — extra documentation burden.
Accepted methods (OECD-aligned)
- Comparable Uncontrolled Price (KFY): direct market comparison.
- Resale Price Method (Yeniden Satış Fiyatı): for distribution transactions.
- Cost Plus Method (Maliyet Artı): for manufacturing/services.
- Profit Split Method (Kâr Bölüşüm): for highly integrated operations.
- Transactional Net Margin Method (İşlem Net Marj): most commonly used in practice.
Documentation requirements
- Master File: for groups exceeding consolidated revenue threshold.
- Local File: Turkish entity-specific documentation, prepared by Kurumlar Vergisi declaration deadline.
- Country-by-Country (CbC) Report: for multinational groups above EUR 750M threshold; submitted via GİB.
- Annual TP Form: attached to corporate tax declaration summarising intra-group transactions.
Türk fintech ve startup bağlamı
Türk-merkezli grup yapılarında, holding-iştirak hizmet sözleşmeleri (yazılım lisansı, marka kullanım hakkı, yönetim hizmetleri) transfer fiyatlandırma incelemesinin merkezindedir. Türk girişim sermayesi fonları offshore SPV yapılarında damga vergisi avantajı arar; ancak Türk merkezli yöneticilerin offshore SPV’lere hizmet karşılığı ücret alması TP analizini tetikler. Sık denetim alanları: yazılım R&D maliyet paylaşım anlaşmaları, IP lisans royalty oranları, finansal aracılık komisyonları.
Do: prepare contemporaneous TP documentation (Local File + Master File) before any audit risk crystallises; use TNMM with benchmarking studies for most service transactions.
Don’t: ignore the “tax haven” expanded scope — transactions with offshore entities (even unrelated) attract TP scrutiny in Turkey.