Table of Contents -- -- 1 Turkey in general 4 -- Geography, Political and Economic Background -- Current Political Administration and Government Structure -- Currency -- Population -- E-government in Turkey -- International relations -- -- 2. Turkish economy 6 -- Main Economic Indicators -- International Trade -- Foreign Direct Investments -- -- 3. Industrial outlook 12 -- I. Global Aspect -- Aerospace and Transport Sector -- Automotive -- Financial Services Industry -- Consumer Business -- Energy and Resources -- Life Sciences and Health Care -- Technology, Media and Telecommunications -- Real Estate -- Tourism, Hospitality and Leisure -- II. Local Aspect -- Aerospace and Transport Services in Turkey -- Automotive Sector in Turkey -- Financial Services Industry in Turkey -- Consumer Business in Turkey -- Energy and Resources in Turkey -- Life Sciences and Health Care in Turkey -- Construction and Real Estate in Turkey -- Technology, Media and Telecommunications in Turkey -- Tourism, Hospitality and Leisure in Turkey -- -- 4. Incentives and financing 36 -- Types of Incentives Available -- Investment Incentives -- Financing -- Other Tax/Non-Tax Incentives -- -- 5. Business regulations and requirements 46 -- 5.1. Foreign Investment Rules -- 5.2. Foreign Trade Government Structure -- 5.3. Registration and Licensing -- 5.4. Price Controls and Competition Law -- 5.5. Exchange Controls -- 5.6. Accounting Principles and Statutory Books -- -- 6. Employment law and practice 54 -- 6.1. Employees' Rights and Remuneration -- 6.2. Social Security and Unemployment Insurance Payments -- 6.3. Termination of Employment -- 6.4. Labor Management Relations -- 6.5. Employment of Foreign Individuals -- -- 7. Choice of business entity 60 -- 7.1. Principal Forms -- 7.2. General Rules for Establishment of Companies by Foreign Shareholders -- 7.3. Corporations -- 7.4. Limited Liability Companies Telecommunications -- 7.5. Branches -- 7.6. Partnerships -- 7.7. Joint Ventures -- 7.8. Liaison Offices -- 7.9. Mergers, Acquisitions, Conversions, in Turkey De-mergers, Share Svvaps -- -- 8. Corporate income taxation 68 -- 8.1. Entities Liable for corporate income tax -- 8.2. Residence and Non-Residence -- 8.3. Taxable İncome -- 8.4. Corporate income tax Rates -- 8.5. Dividend VVithholding Tax Telecommunications in -- 8.6. Treatment of Losses -- 8.7. Participation Exemption in Turkey -- 8.8. Capital Gains Taxation -- 8.9. Controlled Foreign Companies (CFC) -- 8.10. Transfer Pricing -- 8.11. Cost Sharing/Cost Allocations -- 8.12. Anti-Tax Haven Rules -- 8.13. Thin Capitalization Rules -- 8.14. Taxation of Branches of Foreign Companies -- 8.15. Liquidation -- 8.16. Assessments, Payments and Tax Audits -- -- 9. Individual income taxation 74 -- 9.1. Residence and Non-Residence -- 9.2. Taxable İncome -- 9.3. Individual İncome Tax Rates -- 9.4. Assessments and Payments -- -- 10. Withholding taxes and double tax relief 76 -- 10.1. Major Withholding Tax Rates -- 10.2. Double Tax Treaty Relief -- 10.3. Unilateral Relief -- -- 11. Other taxes 80 -- 11.1. Value Added Tax -- 11.2. Special Consumption Tax (SCT) -- 11.3. Property Tax -- 11.4. Inheritance and Transfer Tax -- 11.5. Stamp Tax -- 11.6. Motor Veh ide Tax -- 11.7. Bank and Insurance Transaction Tax -- 11.8. Special Communication Tax -- -- 12. How Deloitte can help? 84 -- 12.1. Corporate İncome Tax Certification (Compliance) Services -- 12.2. Financial Services Industry Tax Advisory Services -- 12.3. International Tax Advisory Services -- 12.4. Mergers and Acquisitions -- 12.5. Taxation of Individuals -- 12.6. Indirect Tax Services -- 12.7. Transfer Pricing Services -- 12.8. Tax and Customs Litigation Consultancy Services -- 12.9. Customs and Foreign Trade -- -- Appendix: Useful Links and Addresses 90 --.