One of the most crucial aspects for foreign-capital companies intending to invest in Turkey is to work with the right professionals in the fields of tax and accounting. In this article, We would like to introduce these professionals in the simplest form.
Certified Public Accountants (Financial Advisor) in Turkey can be classified into two main categories:
1- Serbest Muhasebeci Mali Müşavir (SMMM): Translated as Certified Public Accountant (CPA) or Chartered Certified Accountant (ACCA) equivalent in Turkey.
2- Yeminli Mali Müşavir (YMM): Sworn-in Certified Public Accountants, surpassing the SMMMs.
Is it mandatory for a foreign company to work with a Certified Public Accountant (SMMM) in Turkey?
Yes, it is mandatory, at least for the preparation and approval of tax declarations. This can be achieved in two ways:
1- By contracting with an independent SMMM.
2- By employing an SMMM directly under the company.
Is it mandatory for a foreign company to work with a Sworn-in Certified Public Accountant (YMM) in Turkey?
It depends on the circumstances. Depending on the size of your company (based on criteria such as total assets, net sales, or the number of employees), your company may need to contract with a YMM for the following matters. It is forbidden to employ a YMM within your company. These matters include:
1- Approval of tax declarations: Depending on the criteria met, a YMM may need to approve Corporate Income Tax Return, Withholding Tax Return, and VAT declaration. In such cases, the approval of tax declarations by an SMMM is not permissible.
2- Tax certification: According to certain criteria, Sworn-in Certified Public Accountants (YMMs) in Turkey may need to prepare tax certification reports for VAT and Corporate Income Tax.
3- Independent audit: Depending on the criteria met, your company may be subject to an independent audit. Independent audits can be conducted by Certified Public Accountants (SMMMs) or Sworn-in Certified Public Accountants (YMMs) holding an independent audit certificate.
What are the duties of Certified Public Accountants (SMMMs) in Turkey?
1- Bookkeeping in accordance with the Generally Accepted Accounting Principles and relevant legislation.
2- Preparing financial statements.
3- Preparing and approving tax declarations.
4- Establishing and improving accounting systems.
5- Organizing or providing consultancy on business management, accounting, finance, financial regulations, and their applications.
6- Conducting examinations, analyses, and audits.
7- Providing written opinions on tax matters.
8- Handling arbitration, expert witness, and similar tasks.
All of these tasks can be performed by an independent Certified Public Accountants under a contract with your company, or by an SMMM employed directly by your company.
What are the duties of Sworn-in Certified Public Accountants (YMMs) in Turkey?
1- Performing the duties of financial advisors (SMMMs), excluding bookkeeping (which is prohibited).
2- Conducting tax certification processes for legal entities and individuals, a task distinct from SMMMs.
If you would like more detailed information on this topic or have any questions about tax and accounting practices in Turkey, please feel free to contact us.
[OUR SERVICES] Professional CPA Services for Foreign Investors in Turkey
Engaging a Certified Public Accountant (CPA) in Turkey is vital for foreign investors who need expert guidance on local accounting, tax compliance, and financial reporting standards. With a Turkish CPA by your side, you can confidently manage your business’s finances while focusing on growth. Our services are designed to cover all aspects of accounting and compliance, tailored to the unique needs of foreign-owned businesses.
- Comprehensive bookkeeping to maintain accurate and up-to-date financial records
- Preparation and filing of monthly, quarterly, and yearly tax returns in full compliance with Turkish regulations
- Payroll management to ensure timely and accurate salary payments while fulfilling tax and social security requirements
- Preparation of quarterly and yearly financial statements, including balance sheets and profit & loss statements, according to Turkish GAAP
- Tailored accounting and tax advisory services to support ongoing compliance and financial optimization
Feel free to reach out for reliable CPA services designed to meet your business’s specific needs.
FAQ
1. What is a certified public accountant in Turkey?
Answer:
A certified public accountant (CPA) in Turkey, known as a “Serbest Muhasebeci Mali Müşavir” (SMMM), is a professional licensed to offer accounting, tax, and financial advisory services. They are qualified to prepare financial statements, handle tax compliance, and provide consulting services to businesses.
2. How can a foreign investor find a certified public accountant in Turkey?
Answer:
Foreign investors can find a certified public accountant in Turkey through professional associations like the Turkish Chamber of Certified Public Accountants (TÜRMOB), online directories, and referrals from local business networks or legal advisors.
3. What services do certified public accountants offer to foreign investors in Turkey?
Answer:
Certified public accountants in Turkey offer a range of services to foreign investors, including financial statement preparation, tax compliance and planning, audit services, payroll management, and advisory on local accounting standards and regulations.
4. Are certified public accountants in Turkey required to have any specific qualifications?
Answer:
Yes, certified public accountants in Turkey must hold a university degree in accounting, finance, or a related field and pass a rigorous certification exam. They must also be members of TÜRMOB and adhere to professional standards and continuing education requirements.
5. What are the costs of hiring a certified public accountant in Turkey?
Answer:
The cost of hiring a certified public accountant in Turkey varies based on the complexity of services required and the size of the business. Fees are typically charged on an hourly basis or as a fixed monthly retainer. It is advisable to get a detailed quote and understand the scope of services before engaging an accountant.
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