Transfer Pricing in Turkey 
Definition
Transfer pricing is the price or amount at goods or services transferred/bought/sold between related persons/parties/enterprises or between associated enterprises.
In case, a taxpayer involve in economic transactions such as transfers, sells or purchases of goods and/or services, tangibles or intangibles of all kinds with related parties, where the prices are not set in accordance with arm’s length principle, then related profits are considered to be distributed in a disguised manner via transfer pricing. Such disguised profit distributions via transfer pricing are not accepted as tax deductible and subjected to adjustments not only for corporate income tax purposes, but also for profit distribution and VAT.
