Setting up a business and completing its tax obligations are not the same thing. Companies, sole proprietorships and self-employed professional activity each require their own arrangements for tax registration, notifications, ledgers, electronic documents and payments.
Rights and Duties of Corporate Taxpayers Starting Operations: Notifications, Ledgers and Electronic Documents
Registering a company in the trade registry is the start of its tax procedures; it does not mean that all obligations have been completed. The notice of commencing business, electronic notification, ledgers, documents, beneficial owner disclosure and periodic returns are separate procedures. The rights of a corporate taxpayer are not limited to paying tax: correcting errors, requesting explanations, administrative resolution and legal remedies may be used under the appropriate conditions. [1]
Legal Nature of the Practice and How It Differs from Other Obligations
Completing trade registry registration does not complete all tax notifications. The formation of the company, electronic notification, beneficial owner disclosure and the document arrangement it will use may each create separate obligations.
Effect of the Trade Registry Notice on Tax Liability and Further Notices
On formation of a company, the notice of commencing business is made to the relevant tax office through the trade registry office. Registration in the trade registry within the statutory period of transactions covered by General Communiqué No. 546 issued under the Tax Procedure Law (VUK) may result in the required notification being treated as fulfilled. This convenience does not remove every tax notification.
Events that must be notified separately, such as an increase or decrease in the number of workplaces other than branches, should be checked. The guide sets out a ten-day period for commencing work, a one-month period for ceasing operations and related changes, and a two-month notification framework for new buildings in cities and towns and for sections put into use before completion. Which notification obligation a registry notice covers is determined for each transaction.
The activity code in the formation documents must match the actual activity. When a new activity, address or organizational change arises later, the original formation file must be updated. Engaging an accountant does not remove the responsibility of company bodies to provide accurate information and to monitor the process.
The Tax File to Set Up in the First Month
| Transaction | Basic check |
|---|---|
| Tax registration | Registry, address, activity and representation details |
| e-Notification | Request and access within 15 days of commencing work |
| Tax plate | One month from the start of the new taxpayer status |
| Beneficial owner | One month from the new taxpayer status or from a change |
| Ledgers and documents | Accounting system, authorization and retention arrangements suited to the activity |
The table does not mean that all companies file the same returns on the same day. Tax types are established according to the activity. Employees, rent payments, imports or transactions subject to special consumption tax may create additional obligations. The starting check should be made from the company's actual business model.
Ledgers, Electronic Records and Retention
Corporate taxpayers keep books under the Tax Procedure Law. An electronic ledger is not merely a recording screen in accounting software; it is an electronic ledger system with statutory processes for creation, signing, certificate (berat) and retention. That an electronic ledger need not be printed does not mean electronic files and evidence may be discarded. This section is also covered in the article on the consequences of failing to present ledgers and documents.
For ledgers that must be kept on paper and are subject to approval, the approval times for commencement, a new period, a full ledger or a change of class are assessed separately. The procedures for electronic and paper ledgers must not be confused. Under the Tax Procedure Law, the five-year retention period starts from the calendar year following the relevant year. Longer retention periods arising from the Turkish Commercial Code (Türk Ticaret Kanunu) and other legislation are also taken into account; destroying all company documents after five years is not a correct general rule.
Can Invoices and Payment Documents Substitute for Each Other?
The company issues the invoices, waybills, expense vouchers, producer receipts or other documents its activity requires. A bank receipt may show the payment relationship but, in most transactions, does not replace an invoice. Bank or payment institution documents that may stand in for an expense voucher are subject to the special conditions in Article 234 of the Tax Procedure Law.
A taxpayer using e-Invoice issues an e-Invoice to a registered recipient and an e-Archive Invoice to a recipient who is not registered. For the 2026 e-Archive rules, the status of a taxpayer not covered by the application is also important. The guide separates the 3,000 TL threshold (tax included) for the simplified procedure and business account groups from electronic issuance for other categories regardless of amount. The former general paper invoice threshold should not be applied until the company's group has been determined.
Although electronic documents are mandatory, issuing a paper document outside the mandatory cases permitted may lead to sanctions. A backup document arrangement and a plan for exceptional use in line with legislation must exist for system failures. Not issuing a document, issuing it at the wrong amount and issuing it in the wrong format are different situations.
Retail Sales: Next-Generation Payment Recording Devices and Card Payment Obligations
Retail merchants of the first and second class that fall within scope document sales for which an invoice is not required through a next-generation payment recording device. For those who start new or fall within scope later, the general period is 30 days; in the priority regions specified in the guide, it is 60 days. Purchasing a device and its activation and actual use are not the same thing.
The member business agreement and card payment facility under General Communiqué No. 557 are also provided separately. An old POS, a next-generation payment recording device (YN ÖKC) and an e-Invoice system serve different functions. If an exemption from the device is claimed because of the nature of the activity, all conditions of that exemption must be documented.
Why the Beneficial Owner Is Not Just the Partner List
A beneficial owner is the natural person who ultimately controls the legal entity or holds ultimate influence over it. Other companies placed in between do not stop the inquiry at the first partnership layer. Chains of shareholding and control may require a broader review than a direct partner list.
Companies report this information as an annex to the relevant provisional tax and annual corporate tax returns. On a new taxpayer status or a change in the information, a one-month special notification period applies. If this period coincides with a return period, the annex to the return is used; if not, the separate relevant form is used. Waiting for the next annual return is not sufficient in every case. An incomplete, misleading or undated disclosure is also considered under the special sanction in Article 355 (repeated) of the Tax Procedure Law.
Collections, Rent and Electronic Notification
Under the general documentation obligation, collections and payments exceeding 30,000 TL including VAT are documented through intermediary financial institutions, subject to scope and exemptions. Splitting a transaction into instalments does not allow the total transaction amount to be overlooked. Residential and workplace rent payments and certain vehicle rental payments are subject to special rules that apply regardless of amount.
Under electronic notification in the Tax Procedure Law, a document is deemed notified at the end of the fifth day after it reaches the electronic address. Who in the company checks the account, the termination of an agent and changes in contact details should be governed by a written procedure. An email that does not reach the accountant does not automatically stop the period for a lawsuit or an application.
Stages at Which the Newly Established Company May Use Its Information, Correction and Application Rights
For a tax error, correction and a complaint are available where conditions exist; for a specific doubtful matter, a ruling (özelge); for an incomplete return, voluntary disclosure (pişmanlık) where conditions are met; for a penalty, a reduction or settlement (uzlaşma); and for payment difficulty, deferral (tecil). These are separate routes. A lawsuit against a notice of assessment and a lawsuit against a payment order are not subject to the same period. Waiving a legal remedy is also a different choice from the stage of first bringing a lawsuit.
Taxpayers who meet the tax compliance conditions may assess the conditions for a 5% reduction. This right is not an automatic institutional support granted to every newly established company. Filing, payment and past-period conditions are reviewed. Debt inquiries, petitions, assessments and payment records can be accessed through the Digital Tax Office, but the receipt and result of every submitted transaction should be kept.
Decision Before Action and File to Prepare
From the formation date, record for each notification its deadline, the person responsible and the transmission document. Do not identify beneficial owners from the partner list alone; examine the actual control relationship as well. Keep the separate functions of the invoice, the bank receipt and the card payment record distinct.
Rights and Duties of Self-Employed Professionals Starting Work: Start Notification, Ledger Declaration and Electronic Receipts
Starting a self-employed profession is not just obtaining a tax plate. The start notification, the Ledger Declaration System record, the electronic self-employment receipt (e-SMM), electronic notification and the returns suited to the activity are different obligations. Opening one procedure does not satisfy the deadline of another. Start-up procedures should be assessed together with the taxpayer's information and application rights. [4]
Legal Nature of the Practice and How It Differs from Other Obligations
A professional licence or chamber registration and the establishment of tax liability are not the same obligation. Starting a self-employed activity, the notification, the ledger system and the electronic self-employment receipt each trigger different deadlines.
Nature of the Activity and the Start Date
Independent activity based on personal labour, professional knowledge and expertise is distinguished from paid employment. Writing "consultant" in a contract does not by itself determine self-employed status; dependence and the way the activity is actually carried out are examined. In activities where commercial organization predominates, a commercial income assessment may also be needed.
The start is notified within ten days. For changes in address, activity or the related cessation of work, the period is one month. Notification may be made through the Digital Tax Office, the tax office or a postal channel compliant with legislation. A later first collection does not remove the fact that professional activity may have begun earlier. The actual start date is also important for the young entrepreneur exemption.
Ledger Declaration Application and Record Arrangement
Those who keep a self-employment earnings ledger use the Ledger Declaration System. The application must be made by the end of the seventh business day after the day the start notification is given. The "business day" here is not the same as the month calculation for the transition to the electronic self-employment receipt (e-SMM). Applying and keeping regular income and expense records are separate stages.
Ordinary partnerships and partnerships of persons carrying on self-employed activity are assessed separately for ledger arrangement, and there are provisions under which ledgers kept on the balance sheet basis serve the relevant function. The registration of the partnership and the income tax obligations of its partners must not be confused.
For Tax Procedure Law purposes, ledgers and documents are kept for five years starting from the calendar year following the relevant year. A ledger held in the system not being printed on paper does not mean that expense documents and collection evidence need not be kept. Periods under other legislation and ongoing disputes are also taken into account.
By What Date Must the Switch to e-SMM Be Made?
A professional receipt is issued for collections related to professional activity. Those who start new switch to e-SMM by the end of the third month following the month in which they started. For example, for someone starting in January, the following months are February, March and April, and the usual switch date is the end of April. If there is a special arrangement or a change of period, it is checked separately.
A transition period does not mean that collections may go undocumented in the meantime. A valid paper receipt, followed by an electronic document arrangement, must be in place. After switching to the electronic application, issuing a paper receipt is not appropriate except in the mandatory cases permitted; interruption and backup document arrangements are prepared in accordance with legislation.
How Are Card Payment Documents, e-SMM and VAT Distinguished?
Collecting through a POS or credit card reader does not remove the e-SMM obligation. The bank slip is evidence of payment; the e-SMM is the tax document for the professional collection. The gross amount collected from the client and the amount credited to the account may differ because of card commission, and the records should explain that difference.
Self-employed activity itself is not within the scope of the next-generation payment recording device (YN ÖKC) obligation that applies to retail merchants. However, if a separate commercial activity is carried on alongside the profession, the document and device obligations of that activity are examined separately. Not every self-employed professional ends up with the same device outcome; the professional and POS conditions under Communiqué No. 379 are assessed within their own framework.
Income tax on a collection basis (tahsil esası) and VAT, where the taxable event occurs, may fall on different dates. If a service has been completed but no fee has been received, the view that all tax obligations are deferred simply because "the receipt has not yet been issued" should not be adopted. The contract, the performance of the service and the collection are separate dates.
Expense Vouchers and Expense Documents
For goods or services obtained from a person who has no document obligation, an expense voucher is issued where conditions exist. The general period is at most seven days from the delivery of the goods or the performance of the service. Under the conditions in Article 234 of the Tax Procedure Law, bank, authorized payment institution or PTT documents may take the place of an expense voucher; it cannot be said that every receipt substitutes for an invoice for every purchase.
Having a purchase documented as an expense does not mean that it can necessarily be deducted from professional earnings. Professional connection, personal use, specific limitations and the VAT deduction are examined separately. Paying a personal expense from the professional account does not make it a professional expense.
Returns, Tax Plate and Electronic Notification
Depending on the activity and tax liability, annual income tax, provisional tax, VAT, and withholding and premium service returns are filed electronically. Having no employees does not by itself remove the withholding liability arising from, for example, workplace rent. Which returns are due in a period with no collections is checked according to the type of taxpayer.
A newly starting taxpayer obtains the tax plate within one month of establishing taxpayer status; in later years, the end-of-May obligation applies. The application for electronic notification is made when taxpayer status is established. The 15-day start period described for companies must not be carried over directly to individual self-employed professionals.
Under electronic notification in the Tax Procedure Law, a document is deemed notified at the end of the fifth day, which makes regular monitoring of the account necessary. Even where the professional or their agent has access, the taxpayer must set up a system to track the periods for notices and payment orders.
Documentation, Incentives and Dispute Rights
For collections and payments exceeding 30,000 TL including VAT that fall within scope, documentation through a financial institution is required. A special rule for rent payments, applying regardless of amount, is also considered. Splitting a transaction into parts does not remove the total amount. Issuing an e-SMM and making payment through a bank are two separate obligations.
A self-employed professional who meets the conditions may assess an exemption of up to 400,000 TL on 2026 earnings for young entrepreneurs, and a taxpayer who meets the tax compliance conditions may assess a 5% reduction. These are not granted automatically to every new professional. Age, first taxpayer status, three periods and past return conditions are examined separately.
For an erroneous transaction, correction and a complaint; for a doubtful matter, a ruling (özelge); for an incomplete return, voluntary disclosure (pişmanlık); for a penalty already imposed, a reduction or settlement; for a dispute, a lawsuit; for payment difficulty, deferral (tecil); and where conditions exist, set-off and refund routes. The route depends on the stage the matter has reached. In particular, the 15-day period for a payment order must not be confused with the period at the notice of assessment stage.
Decision Before Action and File to Prepare
Document the actual start date and create separate calendars for the start notification, the Ledger Declaration System application and the switch to electronic receipts. Regularly compare service, collection and tax withholding records, and do not treat a card collection as a substitute for issuing a receipt.
Rights and Duties of Commercial Income Taxpayers Starting Work: Taxation Method, Ledgers and Document System
The first decision of a person setting up a sole proprietorship is not merely choosing an activity code. The commercial nature of the income, the simplified or regular method, the ledger arrangement and the document and collection system must be determined together. Because the scope of the simplified method changed for certain activities in 2026, the formation list from the previous year cannot be used as it is. After the start notification is completed, electronic notification and periodic follow-up continue. [6]
Legal Nature of the Practice and How It Differs from Other Obligations
The taxation method of a sole proprietorship is not merely the business owner's choice. Legal criteria such as the type of activity, business volume and place of residence affect whether the business is taxed under the simplified or the regular method.
Simplified and Regular Methods: How They Differ
The simplified method is not a freely chosen tax model based only on low turnover. General and special conditions are examined together with activities excluded from the simplified regime by law and by Presidential decisions. The scope of Decision No. 10380, as changed by Decision No. 10679, matters from 1 January 2026. The exceptions for metropolitan municipalities, district populations, activities and certain former village and town settlements must be read together.
Under the regular method, the business account and the balance sheet basis also produce different ledger and system outcomes. A person whose commercial income is exempt under the simplified method may still have rental, wage or investment income that must be declared. The commercial income exemption does not exempt all of the person's income.
Separate Deadlines for Start, Address Change and Cessation of Work
The start is notified within ten days. For ceasing work and related changes of address, activity or business, the period is one month; for new buildings in cities and towns and for sections used before completion, a two-month notification framework applies. A record that notifications were made through the Digital Tax Office, a tax office or a postal channel compliant with legislation should be kept.
Acquiring stock, preparing the workplace, the first sale and the first collection may fall on different dates. The start date is determined by actual facts. The real start of the activity should be documented, rather than choosing a date that is more favourable for the young entrepreneur exemption or for the electronic application period.
Ledger Declaration and e-Ledger Are Not the Same System
Taxpayers on the business account basis and on the simplified basis use the Ledger Declaration System within the relevant scope. The application is required by the end of the seventh business day following the day the start notification was given. For taxpayers on the balance sheet basis, the e-Ledger obligation is assessed under its own scope and transitional provisions.
Keeping an electronic ledger does not mean opening a table in accounting software. Records must be created in the statutory manner; approval or certificate (berat) processes, backup and the ability to present the records must be ensured. For ledgers subject to approval that are kept on paper, the approval times at the start, at a change of period and when the ledger is full are different.
For Tax Procedure Law purposes, ledgers and documents are kept for five years starting from the calendar year following the relevant year. Not printing an electronic ledger does not mean that supporting invoices and other evidence may be destroyed. Longer periods under other laws and ongoing transactions are considered separately.
How to Set Up a Sales Document System
Depending on the activity, the business uses invoices, retail sales receipts, waybills, expense vouchers, producer receipts or special documents. Transporting goods, making the sale and receiving payment are not always covered by the same document. In e-commerce, the order summary that a platform gives the customer does not replace the business's invoice obligation.
An e-Invoice taxpayer issues an e-Invoice to a registered recipient and an e-Archive Invoice to an unregistered recipient. The 2026 guide separates invoices above 3,000 TL (tax included) for businesses in the simplified and business account groups that are outside the e-Archive application, and electronic issuance regardless of amount for other categories. The status of both the issuer and the recipient is checked together.
Failing to issue or receive a document, issuing it at an amount different from the actual one, or not complying with a mandatory electronic format may give rise to a special procedural offence sanction. Backup document arrangements in line with legislation must exist for electronic interruptions and mandatory cases. A bank collection that is later identified does not automatically remove the document violation.
Next-Generation Payment Recording Device and Bank Card Payment Acceptance
Retail merchants of the first and second class that fall within scope document, through a next-generation payment recording device, the sales for which they are not required to issue an invoice. For those who start new or fall within scope later, the general period is 30 days; in the priority regions specified in the guide, it is 60 days. The suitability of the device, its activation and its actual availability for use are checked together.
The member business agreement and card payment facility under General Communiqué No. 557 must also be provided separately. An old POS, a cash register, a next-generation device and e-Invoice software serve different functions. If an exemption from the device is claimed because of the nature of the activity, all conditions of that exemption must be documented.
Filing Channel and Tax Plate
Annual income tax, provisional tax, VAT, and withholding and premium service obligations arising under the regular method are established according to the activity and fulfilled electronically. The balance sheet and business account bases may be linked to different application channels. For commercial income under the simplified method, not filing an annual return does not prevent declaring other income that is subject to declaration; those are handled through the relevant Ledger Declaration procedure.
A taxpayer who starts during the year obtains the tax plate within one month of establishing taxpayer status; in later years the end-of-May obligation applies. Holding the tax plate alone does not prove that all returns have been filed. Filing approval, assessment and payment are checked separately each period.
Which Threshold Applies to Collections and Rent Payments?
Under the general documentation arrangement, transactions exceeding 30,000 TL including VAT are documented through an intermediary financial institution, subject to scope and exemptions. Collecting in parts does not remove reliance on the total amount. The exemption for transactions between persons who are not taxpayers cannot be used for every transaction with the business's customers.
For residential and workplace rent collections and payments, a bank or PTT documentation requirement applies regardless of amount. A special rule also applies to certain vehicle rental services. Issuing an invoice or receipt and making payment through a bank are independent obligations.
Electronic Notification, Incentives and Application Rights
When income tax liability is established on commercial income, an e-Notification application is made. Because a document is deemed notified at the end of the fifth day after it reaches the electronic address, the account must be monitored regularly. Not receiving an SMS, forgetting the account or changing advisers does not automatically stop the periods.
A young entrepreneur who meets the conditions may have an exemption of up to 400,000 TL on 2026 earnings, and a taxpayer who is compliant may have a 5% reduction on the computed tax. The special conditions for a young entrepreneur on a transition from the simplified to the regular method are also examined separately. A tax exemption does not mean that a previously abolished premium support continues.
Depending on the stage of the matter, the taxpayer may use the routes of correction, complaint, ruling, voluntary disclosure, reduction of penalty, settlement, lawsuit and deferral. The 15-day period for a payment order must not be confused with the period at the notice of assessment stage. Keeping a calendar of notifications and applications alongside daily sales and collection records is also necessary for the business to exercise its tax rights.
Decision Before Action and File to Prepare
Determine the method and the document arrangement before starting work. Keep the deadlines for the start and for later change notifications separate, and set up the ledger, payment recording device, rent and collection obligations according to the actual conditions of the activity.
Sources and legal bases
- Brochure on Rights and Duties of Newly Starting Corporate Taxpayers (İşe Yeni Başlayan Kurumlar Vergisi Mükelleflerinin Hak ve Ödevleri Broşürü)
- Tax Procedure Law No. 213 (Vergi Usul Kanunu)
- Corporate Tax Law No. 5520 (5520 sayılı Kurumlar Vergisi Kanunu)
- Brochure on Rights and Duties of Self-Employed Professionals Starting Work (İşe Yeni Başlayan Serbest Meslek Erbabının Hak ve Ödevleri Broşürü)
- Income Tax Law No. 193 (193 sayılı Gelir Vergisi Kanunu)
- Brochure on Rights and Duties of Commercial Income Taxpayers Starting Work (İşe Yeni Başlayan Ticari Kazanç Mükelleflerinin Hak ve Ödevleri Broşürü)
- Income Tax Circular No. 100: simplified regime in metropolitan municipalities (Gelir Vergisi Sirküleri 100: büyükşehirlerde basit usul)