Taxation of business partnerships in Turkish tax law

In Turkish tax law, business partnerships are currently regulated in the Corporate Tax Law No. 5520. Although business partnerships have similarities with formations such as ordinary partnerships, concerts, partnerships, joint ventures, and consortiums, there are fundamental differences in nuances. Since the taxation of business partnerships in Turkish tax law is regulated in the Corporate Tax Law and there is no detailed explanation in legal terms, some problems may be encountered in practice. Although the problems that arise are resolved by the administration, some problems still exist. In the event that a tax is assessed or a penalty is imposed on a business partnership whose liquidation process has been completed, a limited taxpayer partner who no longer operates in Türkiye may have problems in terms of access to the assessment and penalty in question. Likewise, the lack of a clear regulation in the legislation regarding the capital and assets of the business partnership and the status of the allocation of capital in kind to the business partnership by the partners in terms of VAT are among the problems encountered in practice. Another issue that can be seen as a problem is that if the activity of the business partnership results in a loss, this cannot be deducted from the partners' own accounts. In short, more comprehensive regulations are needed for the solution of the problems encountered in practice and in the legal field for business partnerships with a special status, and we believe that the explanation of the status of business partnerships in terms of tax legislation with a separate Communiqué that will meet the hesitations experienced and also include the solutions to the problems will meet this need. Keywords: Business partnership, ordinary partnership, taxation of business partnerships, taxation of ordinary partnerships.