1.Accounting system in Turkey
Companies Act regulates the accounting system in Turkey. And from July of 2012, according to the establishment of Turkey Business Act, almost all of corporations in Turkey to create financial statements based on Turkey Accounting Standards are required. Turkish Financial Standards Committee (TMSK) establishes the Turkish Financial Reporting Standards and Turkish Financial Reporting Standards (TFRS) are established based on International Financial Reporting Standards. TFRS is applicable for corporations except for SMEs. From the year of 2013, SME’s TRFS was established and used. Business Committee and TMSK decide the identification of SMEs and which company is SME.
2. Accounting period and bookings
Accounting period in Turkey is from January 1st to December 31st and it is stipulated in Companies Act. However, for foreign companies it is possible to set another accounting period with the permission of Financial Office. And tax year should be same with accounting period. Thus, it is possible to match the tax year with accounting period for different accounting period, which is used by foreign companies.
3. Accounting bookings
All of companies in Turkey have the duty to keep accounting bookings. And accounting bookings should be written in Turkish. Bookings should be kept for 5 years based on Tax Act and for 10 years based on Business Act. The characteristic of accounting bookings in Turkey is that the certification of notification is necessary on the date of opening day and closing day. Industry Business Office rules the form and principle.
4. Disclosure System
Companies Act stipulates disclosure schedule. Corporations should submit financial statements and yearly reports within 3 months from closing date to General Assembly. And within six months these should be disclosed on an official gazette and website. Listed companies are also required to submit these documents to Istanbul Securities Exchange Office. And financial statements should be made within 2 months from closing date and submitted to General Assembly within 3 months.
The contents should be disclosed including:
・ Financial Statements
・ Yearly Reports of Activities
・ Audit reports
・ Distribution of profits
・ Contents decided by General Assembly
5. Audit system
Only large-scale companies are required to be audited in Turkey. The standards of large-scale companies were made publicly from January 2013. It is the sales are more than 200,000,000TL, or gross capital is more than 150,000,000TL, or the average number of employees is more than 500. There are three kinds of audit, which is external audit, transaction audit and special audit. Auditors should be appointed by General Assembly except for special audit. Large-scale should be audited by independent audit firm and SMEs should be audited by independent audit firm or certified financial adviser or independent accounting adviser. After appointed by corporations, the name of auditor must be registered and announced in the website.
6. Our services of accounting and taxation
①monthly closing or yearly closing
・ We will help the representative overseas can not do the accounting management well.
・ We will help someone who wants advice from professional.
・ We will help someone who want to manage profit and loss reason
We will create financial statements monthly that can know the management of business and financial conditions timely. And we will also create financial statements for yearly closing. In addition, we will support our customers to make the structure of organizations.
② Consulting services for accounting and taxation
When accountants in your own companies do the accounting and taxation or local accounting firm in Turkey does taxation work or the work, the communication between managers and staffs will be a problem and maybe managers will doubt that if the staffs deal with some problems from the view of accountant. In these cases, we will provide proper advice and services to our customers.
③ Representation service of tax declaration for monthly or yearly
・ We will help the one who is worried about the tax declaration is proper or not
・ The service of taxation declaration (taxation at source・VAT) stipulated in the law in Turkey.
④ Services of accounting audit
All of the companies should be audited by accounting auditors in Turkey. We will provide highly quality services of accounting audit at a reasonable price.
⑤ Transfer price services
In the future, the transfer pricing taxation will be stricter and stricter but we will always support. We will not only do the analysis met with conditions, but also provide the proper advice and services.