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ARTICLE · 18 DECEMBER 2018

Transfer Of Real Estate Through Partial Spin-Off

According to Article 19 of Corporate Tax Code No. 5520 ("CTC"), real estate, participation shares held for more than two years, and manufacturing or service business lines that are recorded in the balance sheet of a full liable equity company.

TurkeyReal Estate and Construction

Introduction

According to Article 19 of Corporate Tax Code No. 5520 ("CTC"), real estate, participation shares held for more than two years, and manufacturing or service business lines that are recorded in the balance sheet of a full liable equity company, or a non-resident equity company's work place or permanent establishment in Turkey, may be transferred to an existing or a newly established full liable equity company through partial spin-off transaction over their net book values.

Partial spin-off transactions conducted in line with CTC provisions benefit from the corporate tax, value added tax, stamp tax and title deed fees exemptions envisaged in the relevant tax codes.

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