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Written by TACCI Admin   
Monday, 20 April 2015 19:04


LMC America, Increpresented by Mr. Mahmut Uzicanin, has become a General Member of TACCI.

LMC America, Inc. is an export/import company established in 1992. They are specialized in high voltage electrical equipment for power lines, transformer stations and substations. LMC America, Inc. is a prime export distributor of Hubbell Power Systems for Central & Eastern Europe including Turkey, but also supplies products made by some other US and European producers such as Salisbury by Honeywell, Cooper Power Systems, ABB, GE, etc.


Address: 14 Main St, Suite #202, Madison, NJ 07940


Phone:(973) 301-2378


Turkey and Kazakhstan to cooperate in boosting trade throughout Eurasia PDF Print E-mail
Written by TACCI Admin   
Friday, 17 April 2015 16:23
President Recep Tayyip Erdoğan (L) held a joint press conference with Kazakh President Nursultan Nazarbayev (R) and signed the joint statement regarding the results of the High-Level Strategic Cooperation Council.President Recep Tayyip Erdoğan (L) held a joint press conference with Kazakh President Nursultan Nazarbayev (R) and signed the joint statement regarding the results of the High-Level Strategic Cooperation Council.

Turkey wants to open up to Asia via Kazakhstan, while Kazakhstan wants to open up to Europe and the Middle East via Turkey, bringing the two country's governments and businessmen together

Turkey and Kazakhstan aim to reach a $10 billion trade volume and $500 million in investments. Turkish President Recep Tayyip Erdoğan paid an official visit to Astana, the capital of Kazakhstan, yesterday where he met his counterpart Nursultan Nazarbayev and attended the Turkey-Kazakhstan High Level Strategic Cooperation Council meeting. Erdoğan and Nazarbayev chaired the second meeting of the council after holding private talks.

After the council meeting, Erdoğan and Nazarbayev held a joint press conference, signing the joint statement regarding the results of the High-Level Strategic Cooperation Council.

Nazarbayev emphasized that the trade volume between Turkey and Kazakhstan has remained at $3.4 billion because of the recent severe global economic conditions.

Nazarbayev pointed out that they have launched a new economic program called "Nurlu Yol," or the Bright Path, in November 2014, as a measurement against the crisis. He added that they wanted to include economic development cooperation with Turkey within the scope of the economic program. Stressing that they had a desire to establish joint organized industrial zones with Turkey in Kazakhstan, Nazarbayev said, "We aim to increase investments to $500 million and trade volume to $10 billion annually."

Touching on the Silk Road project, which aims to establish a new economic zone between Europe and Asia, Nazarbayev stated that they were in agreement to create a joint investment fund with Turkey. "Turkey wants to open up to Asia via our country, while we want to open up to Europe and the Middle East via Turkey," remarked Nazarbayev.

Erdoğan said, "As two big countries of Eurasia, Turkey and Kazakhstan have huge potential. Kazakhstan has a critical position in terms of connecting the Middle East with international markets via the Caspian Sea. The projects to be carried out here will contribute to welfare and stability in the region."

Reminding the public that they increased the level of bilateral relations between Turkey and Kazakhstan to strategic partnership in 2009, Erdoğan noted, "We brought a corporate mechanism to it by means of establishing the High-Level Strategic Cooperation in 2012."

Stating that Turkey welcomed the news that Kazakhstan has become one of 50 countries having the highest competitive power in the world, Erdoğan added that Turkey believed wholeheartedly that Kazakhstan would attain its other aim, which is to become one of the most developed economies in the world.

Erdoğan pointed out that "if there is no aim, no dream, it is not possible to achieve results." The Nurlu Yol economic program, which has been announced recently, is a significant project that can carry the country to the center of transportation and logistics. I also believe EXPO 2017 will contribute significantly to the promotion of Kazakhstan. During all these processes, we will continue to stand by our Kazakh brothers.

Nazarbayev further commented on the bilateral relations of Turkey and Kazakhstan. He said in his speech that they discussed with Erdoğan in the meeting how they would deepen bilateral relations in the fields of trade, economy, investment, industry and transit transportation, as well as cultural and humanitarian relations. Pointing out that there were 1,600 Turkish companies in Kazakhstan and Turkish businessmen had carried out many projects valued at nearly $20 billion since Kazakhstan's independence, Nazarbayev invited the Turkish business world to join 25 new projects in Kazakhstan, which will host EXPO 2017.



Foreign corporations in Turkey must file taxes by April 25 PDF Print E-mail
Written by TACCI Admin   
Tuesday, 14 April 2015 14:51

HDN Photo

HDN Photo

The pace of growth and development in the Turkish economy and its foreign trade implications over the last decade, coupled with the deepening interconnectedness of markets across the globe and the interdependence of national economies - both those in geographical proximity to each other and those in distant continents - has brought topics related to direct and indirect foreign investment to the top of the agenda. Taxation of firms with investments in foreign countries according to the respective tax jurisdictions where they operate is a principal subject in this regard.

As pointed out quite elaborately in my previous article published in this column on March 20 regarding the taxation of foreign landlords, all income generating entities, individuals and corporations alike, are subjected to tax provisions according to their tax-statute in Turkey. In other words, individuals and corporations, before being designated as taxpayers by the tax authorities, are classified either within the context of full tax liability or limited tax liability.

Foreign corporations with investments in Turkey are deemed limited-liable taxpayers and are subjected to taxation on their income elements derived in Turkey by the provisions of the relevant tax laws, provided that they neither have legal headquarters or a center of transactions established in Turkey.

Income elements derived by foreign corporations on their activities carried out in Turkey that are liable to taxation according to the principles of limited tax liability are articulated one by one in the Turkish Corporate Tax Law (TCTL) as the following:

- Income derived from commercial and agricultural activities,

- Income derived from the rental of real estates and rights and returns on stocks and bonds,

- Income derived from conducting independent professional activities,

- Other income and earnings derived from activities specified by the law.

Foreign corporations with a limited tax liability are expected to declare their aggregate income elements through filing different tax returns depending on their type of income and their activities.

Annual tax return

Similar to domestic corporations with full tax liability, foreign corporations file an annual tax return depicting all their revenue elements generated from their commercial and agricultural activities and operations conducted in the course of the calendar year.

This particular tax return is submitted to the tax office of the district in which their branch or permanent representative is located. In the absence of such a branch or permanent representative, the tax return is filed with the tax office of the business partners who provide the concerned income elements. The tax return regarding income elements derived from commercial and agricultural activities during the year 2014 should be submitted between April 1, 2015 and April 25, 2015. The payable tax calculated and assessed on behalf and account of managers or representatives of foreign corporations is paid at the end of April 2015.

Foreign corporations stopping their activities in Turkey altogether are also held responsible for filing a final tax return declaring all income derived from their commercial and agricultural activities carried out between the beginning of the accounting period(be it the calendar year or a special period) and the date of departure. That tax return shall be submitted within 15 days before the departure and the tax amount calculated is paid within the same period.

Special tax return

On the other hand, those foreign corporations that have merely “other income and earnings” derived from the disposal of movable and immovable capital elements or profit-generating incidental activities (specified between articles 80-82 of Personal Income Tax Law) have the legal obligation to file the so-called “special tax return” that encompasses only cited income elements.

Since there is no specific taxation period such as accounting period or calendar year for the declaration of the incomes cited above, special tax returns shall be filed with the concerned tax office within 15 days from the date of the disposal of capital elements or fulfillment of the incidental activity. The tax office with the authority to receive these types of tax returns varies according to nature of the income element. The payable tax computed and finally assessed by the relevant tax office shall be paid within the filing period.

Tax withholding

On the assumption that foreign corporations do not have any commercial and agricultural activities in Turkey (with all their revenues derived from the disposal of intangible rights such as copyrights, royalties, franchises, patents, company names, trademarks etc.), they are taxed by the buyers of these rights, who are held responsible by Article 30 of TCTL, to withhold 15 percent of the revenue paid to foreign corporations on behalf of the tax authority. Filing a tax return displaying these income elements is voluntary.

* Diyadin Yakut is a tax inspector in the Turkish Finance Ministry.



Turkey eyes top place in number of Blue Flag beaches PDF Print E-mail
Written by TACCI Admin   
Thursday, 09 April 2015 14:24

Turkey eyes top place in number of Blue Flag beaches

09 April 2015 16:26 (Last updated 09 April 2015 16:28)

In 2014, Turkey ranks third after Spain and Greece in number of beaches boasting prestigious eco-label.



Turkey is aiming to be the world leader in the number of Blue Flag beaches as part of its 2023 targets to mark the 100th anniversary of the Republic, said Prime Minister Ahmet Davutoglu Thursday. 

"Blue Flag" is an exclusive eco-label awarded by the NGO Foundation for Environmental Education, or FEE, to beaches and marinas that meet certain criteria such as water quality, environmental education and information, environmental management, and safety.

"We are ranked third in the world after Spain and Greece, regarding best protected beaches," he said at a mass inauguration ceremony of environment and infrastructure projects, worth some 500 million Turkish liras ($193 million), by the Ministry of Environment and Urbanization at Ankara's ATO Congresium.

According to the 2014 list, Turkey is third, with its 383 beaches and 21 marinas awarded the blue flag, from a total of 70 countries. Spain tops the list with 573 beaches and Greece comes in second with 407.

The prime minister also pointed other important developments environment-wise during the 13-year Justice and Development, or AK, Party rule.

Davutoglu said they had planted 3.5 billion trees, i.e. 4 million hectares of forests.

He said the number of solid waste storage facilities had gone from 15 in 2003 to 79 in 2014.

"We increased the number of waste water treatment facilities six-fold in 13 years," he added.

Across the country, Turkey now has a total of 186 air quality control stations, as Davutoglu stated, adding that they wanted to increase the number to 330 by 2023.


New Ankara Terminal to serve as the hub for Turkey’s high-speed rail network PDF Print E-mail
Written by TACCI Admin   
Wednesday, 08 April 2015 16:09
New Ankara Terminal to serve as the hub for Turkey’s high-speed rail network

Turkey's capital Ankara will have a new rail terminal complex matching its size and importance, along with its central role in Turkey's rail transport system, as of July 2016. The country's Transport, Maritime Affairs and Communications Minister, Feridun Bilgin, made the announcement on Wednesday.

Speaking to Anadolu Agency, Bilgin said that the new terminal will also serve as the hub of Ankara's rail network. The new terminal will be connected to the existing Ankaray, Başkentray, Törekent-Batıkent-Kızılay lines, and will have connections with Keçiören-Kızılay and Airport-Kızılay lines when they are completed. Bilgin said that the new terminal will be connected to these lines through two underground passes and one overpass.

Along with problems in rail transport, the existing terminal building has served below its capacity for years as it has remained isolated from Ankara's major transport lines despite its central location and proximity to Ankara's landmarks.

The new terminal, which has been under construction since 2014 and has progressed by 23 percent, is located just south of the already existing terminal building located in central Ankara. "The existing terminal building, which was built in the early Republican era, was not enough in terms of size and passenger capacity," Bilgin said.

The new terminal, which is being constructed through the "built – operate – transfer" method, which will cover a period of 19 years, will initially have a daily capacity of 20,000 passengers, which will later increase to 50,000, Bilgin added. The building will have 178,000 square meters of closed area in eight floors, and will serve six high-speed trains across three platforms.

More than 100 rail transport projects have been completed since 2003, Bilgin said, which are led by Ankara-centered high-speed rail projects. According to Bilgin, Turkey is currently the eighth largest high-speed rail operator in the world and sixth largest in Europe. The country's first high-speed rail line started operating in 2009 between the central cities of Ankara and Eskişehir, followed by Ankara-Konya and Ankara-Istanbul lines in 2011 and 2014. There are ongoing projects to connect Ankara with Turkey's third largest city Izmir and central city of Sivas with high-speed rail, while extensions are being built from Konya to Karaman and Bilecik to Bursa.



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