Turkey: APA draft guidance

Turkey: APA draft guidance

The revenue administration in Turkey in early April 2015 published advance pricing agreement (APA) draft guidelines as information for taxpayers that may be interested in applying for an APA.

Related content

In general, the draft guidelines sets forth information that is required or that may be requested by the tax authorities with respect to APA applications.


Advance pricing agreements (APAs) are available in Turkey pursuant to the fifth clause of article 13 of the corporate tax law, number 5520, “Disguised Profit Distribution through Transfer Pricing.” 

An APA may be available for taxpayers to resolve potential tax disputes regarding the transfer pricing methodology selected for designating the transfer prices of products or services either purchased from or sold to related parties. 

APA guidance

Detailed information on the APA process provided in the draft guidelines:

  • Describes the APA application process
  • Refers to the application fee (a tariff to be published by the tax authorities)
  • Sets out the required information and documentation for the APA application including mandatory information such as the nature of transaction, adequacy of the data presented, and an analysis of and the reasons for selecting the transfer pricing method
  • Describes the types of APA (unilateral, bilateral, or multilateral) and the situations for each type of APA
  • Lists the required information regarding related parties (i.e., counterparties to the related transaction subject to the APA) such as the related parties’ organization and capital structures, field of activities, current industry and market share, as well as its function, risk, and asset profile
  • Sets out expectations relating to details of economic analyses to be conducted and submitted within APA process, so as to justify a reliable comparability result for the respective transactions under review
  • Provides that the tax authorities may request specific information and documentation from the taxpayer over the course of APA application process if necessary, and describes this type of information

KPMG observation

An advantage of an APA is that a taxpayer that may be hesitant as to which transfer pricing methodology to use will obtain certainty from the tax authorities, with respect to the transfer pricing methodology to be used for a specific period of years. With the recent release of the draft guidelines, taxpayers in Turkey now have information about what information they are to supply to the revenue administration in their application petitions. The new guidance is expected to facilitate the length and efficiency of the APA processes in Turkey.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform