The exemption of foreign substantial shareholding sales earnings in Corporate Tax Law

In our master's thesis which is titled "The Exemption of Substantial Shareholding Sales Earnings in Corporate Tax Law", it is essentially aimed to analyze the purpose and conditions of the legal regulations regarding 'exception', which is a tax expenditure in the Corporate Tax Law. While explaining the issue of in which cases the corporate earnings obtained from domestic and abroad can benefit from the exceptions, the exceptions which are applied in the light of international taxation principles were evaluated in terms of the generality principle in taxation by considering the double taxation problem. It is aimed to investigate all aspects of the special situations that may be encountered in practice after this regulation was made in order to investigate in detail and prevent double taxation, which is identified as the taxation of the income that is obtained from the same source within different institutions. It is thought that evaluating the applicability of the foreign substantial shareholding sales earnings exemption, which is one of the exceptions regulated in the Corporate Tax Law No. 5520, is possible by firstly explaining the concept of participation. In this context, by explaining the purpose and scope of the affiliates, the reason why the companies participate was researched; the conditions required for the application of the subsidiary income and substantial share sales earnings exemptions were examined; the difference of subsidiary from similar concepts and its place in Turkish legislation are explained. After explaining the concept of participation in general terms, the regulation of foreign substantial share sales earnings exemption was examined in the light of the Council of State Decisions, rulings and examples.