Turkey’s Revenue Administration has announced the publication Communiqué No. 17 on 15 February 2018. The Communiqué clarifies withholding tax requirements for online advertising services set out in Decision No. 476, which was published in December 2018. This includes that tax must be withheld on payments to online advertising service providers, as well as payments to intermediaries for the provision of online advertising.
The withholding tax rate is generally 15% for payments made to non-resident taxpayers (with limited tax liability in Turkey) and 0% for payments made to resident taxpayers (with unlimited tax liability). The 15% rate also applies on payments made to resident intermediaries where payment is ultimately made to a non-resident service provider, in which case the intermediary is responsible for the withholding. Where payments are made to an individual, 15% withholding applies regardless of residence.
The withholding tax applies on payments made from 1 January 2019, even if the advertising service was provided prior to that date.