Your Financial Guide to Entering the Turkish Market

High inflation and FX volatility are defining characteristics of the Turkish market.

• High inflation impacts pricing, costs, and margins 
• FX exposure must be actively managed 
• Financial planning requires dynamic and frequently updated assumptions 

👉 Static budgets are rarely sufficient in this environment.

One of the most common challenges for international companies is the mismatch between local accounting and group reporting standards.

• Turkish statutory accounting differs from IFRS 
• Timing differences in revenue & expense recognition 
• Need for a structured reporting bridge 

👉 Without proper alignment, reporting inconsistencies become a recurring issue.

 Tax structure directly impacts profitability and cash extraction.

• Corporate tax structure 
• Dividend distribution constraints 
• Withholding taxes & transfer pricing considerations 

👉 Early structuring decisions have long-term tax implications.

Choosing the right structure is not only a legal decision, but a financial one.

• Subsidiary vs branch vs distributor model 
• Pros & cons from a financial control and reporting perspective

 Funding decisions impact both risk and operational flexibility.

• Equity vs intercompany loans 
• FX implications 
• Thin capitalization rules 

 Transfer pricing must be aligned from day one.

• Required documentation 
• Alignment with global policies 

👉 Fixing transfer pricing later is significantly more complex.

The foundation of all reporting.

• Alignment with HQ reporting 
• Flexibility for growth

 Early system decisions have long-term consequences.

• System selection should support scalability 
• Avoid manual-heavy structures

 Reliable reporting builds confidence at group level.

• Monthly closing discipline 
• Management reporting pack 
• KPI structure 

👉 What is not measured cannot be managed.