Financial Advisory · Tax Planning
Tax liability,
within the legal framework,
can be optimised.
Filing a return is compliance. Tax planning goes beyond compliance — it means proactively using legal mechanisms to reduce the tax burden, manage cash flow, and be prepared for the periods ahead.
Approach
STRATEGIC
Tax Planning Advisory
Why It Matters
Most companies only engage a tax adviser during declaration periods. In this approach, by the time the tax consequences of decisions made during the year are noticed, the window for intervention has already closed. Decisions such as recruitment timing, investment structure, export model, or company mergers significantly affect the tax burden; however, this impact can only be managed through a proactive approach.
Akbaş models clients' annual tax position at the start of the accounting period, proactively brings the tax dimension of important business decisions to the table, and updates the period projection with a brief quarterly briefing. Preventing surprise tax bills is the natural output of this process.
Legal Mechanisms
Every tool the legislation offers is evaluated.
Turkish tax legislation grants companies that meet certain conditions significant deduction, exemption, and exclusion opportunities. The conscious use of these mechanisms directly translates into tax advantages.
| Mechanism | Legal Basis | Target Group | Potential Impact |
|---|---|---|---|
| R&D and Design Deduction 100% of the expenditure is deducted from the declaration base as an additional deduction | KVK 10/a, Law No. 5746 | Companies with an R&D centre or design centre | Very high |
| Participation Income Exemption 100% of dividends received from fully liable entities is exempt from corporate tax | KVK 5/1-a | Companies with holdings and subsidiaries | High |
| Real Estate Sale Gain Exemption 50% of the gain from the sale of real estate held in assets for at least 2 years is exempt | KVK 5/1-e | Companies holding real estate or participation shares in their assets | Medium |
| Tax Deferral from Investment Allowance Expenditures within the scope of an investment incentive certificate are deducted from the base; tax is deferred | YTB legislation, PIT Code provisional articles | Companies holding an investment incentive certificate | High |
| Cash Capital Increase Interest Deduction Deduction calculated on cash capital increases at the CBRT interest rate | KVK 10/1-ı | Joint-stock and limited companies that have increased their capital | Medium |
| Prior-Year Loss Offset Financial losses from the last 5 years can be offset against profits of future periods | KVK 9/1-a | Companies that declared losses in previous periods | Medium |
| Export VAT Refund Optimisation Cash refund of VAT incurred on export deliveries strengthens cash flow | KDVK 11/1-a | Companies that export goods or services | High |
The applicability of the mechanisms in the table varies depending on company conditions, sector, and accounting period. You may request a meeting to assess which mechanisms apply to your company.
Working Model
The annual planning cycle
runs in four stages.
Period-Opening Tax Position Analysis
At the opening of the accounting period, prior-year data, existing losses, unused deduction rights, and projections for the coming period are evaluated to prepare a "tax position report." This report is the map for annual planning.
Proactive Advisory at Decision Points
Before decisions such as recruitment, investment, export, company transfer, or restructuring are made, the tax dimension is calculated and reported. This analysis presented before a decision is made prevents tax costs that are difficult to reverse.
Quarterly Tax Briefings
At each provisional tax period, the current income-expense situation is analysed, the period-end projection is updated, and recommendations are presented while the time window for necessary adjustments is still open. The vast majority of year-end surprises are prevented at this stage.
Period Close and Next-Period Planning
Before the year-end corporate tax declaration, a final situation assessment is made; remaining deduction rights that can be used, losses that can be offset, and items to be carried over to the next period are identified. Declaration preparation is the natural output of this planning.
Frequently Asked
Common questions about
tax planning.
What is the difference between tax planning and tax evasion?
Tax planning means consciously making use of the exemption, deduction, and exclusion mechanisms that exist within the legal framework. Tax evasion means concealing or reducing the tax base through irregular means. Akbaş advisory works exclusively through mechanisms explicitly recognised by the PIT Code, CIT Code, and VAT Code.
How much can be saved through tax planning?
The amount of savings varies depending on the company's size, sector, R&D structure, and investment plans. For companies with R&D expenditure, an additional deduction of up to 100% stands out; for exporters, VAT refund advantages; for investors, incentive-driven tax deferral. Company-specific potential is identified at the initial analysis meeting.
When should tax planning begin?
Starting at the beginning of the accounting period is the right approach. Once the declaration period is entered, it is no longer possible to benefit from certain mechanisms. Investment, recruitment, R&D, or export decisions made during the year directly affect the tax burden; planning must be done before these decisions are taken.
Is tax planning meaningful for small-scale companies too?
Yes. In fact, because cash-flow pressure is more intense for small companies, optimising the tax burden is even more critical. Timely submission of annual refund claims in sectors subject to reduced VAT rates is an important cash source for SMEs. The choice of company type also determines the long-term tax burden at a small scale.
How does corporate structure affect the tax burden?
Although the corporate tax rate is the same for limited and joint-stock companies, the applicability of mechanisms such as profit distribution, transfer pricing, participation income exemption, and holding structures differs depending on the company type and structure. It is recommended to analyse the tax impact before restructuring decisions are made.
What is the difference between in-year planning and year-end planning?
In-year planning is proactive; the tax impact is calculated before decisions are made. Year-end planning is a retrospective evaluation; some opportunities may have been missed. Akbaş presents periodic tax briefings to clients throughout the year, bringing the tax dimension of important decisions to the table in a timely manner.
Let us analyse your company's tax position.
We present a company-specific analysis at the first meeting to assess your current tax burden and unused mechanisms.
Request a MeetingNext Step
Start optimising your tax burden
within the legal framework.
From R&D deductions to export VAT refunds, from cash capital interest deductions to prior-year loss offsets — we evaluate every mechanism the legislation offers for your company.