Tax advantage for foreign investments

Aksam - Certain amendments have been made in Turkey’s Income Tax Law against the adverse effects of global financial crisis. In this draft law, which makes amendments in the Corporate Tax Law as well, some arrangements for enabling foreign funds to transfer their portfolios to Turkey have been made. Accordingly, should foreign funds lacking full fledged taxpayers among their founders (full fledged taxpayers are those who are based in Turkey) transfer their portfolios to Turkey, they will be granted tax advantages. These funds will pay taxes for their income obtained through portfolio managing companies operating in Turkey. In other words, the same funds will not pay tax for income it obtains abroad.