Income obtained from intellectual property rights is subject to special tax regime.
For Turkish Citizens
- Royalty earnings: income tax (self-employment)
- In some cases, withholding tax (deduction by the publishing house)
- Annual declaration
Trademark/Patent Owner Company
- License income = business income
- Institutions tax
- Depreciation
Royalty Payment Abroad
- Low withholding tax if there is an agreement to avoid double taxation
- Otherwise 20% withholding tax
- VAT application
Patent Exemption (KV art.5/B)
- Patent from R&D activity → corporate tax exemption
- 50% tax deduction under certain conditions
Copyright Exemption (GV art.18)
- For works such as books, articles, music
- Exemption from income tax up to a certain annual amount
Transfer Taxes
- Trademark/patent sale: capital increase
- Licensing: income tax
- VAT application
Tax Office Inquiry
- Information sharing with TPMK
- Trademark/patent owners have been notified to the tax office
- Declaration obligation
4th Department of the Council of State
4. The Department adopts that "contract nature" is taken as basis in the taxation of intellectual property gains, and that the scope of the transfer of rights, not just the payment method, should be considered.
Tax and intellectual property lawyer is recommended.