Tax Audits in Türkiye: Definitive & Practical Guide for 2026

Tax audits in Türkiye have become increasingly structured, technology-driven, and outcome-focused. As of 2026, the Turkish Revenue Administration (TRA) continues to intensify audit activity to combat the informal economy, ensure compliance with evolving tax legislation, and align local practices with international standards. For both foreign investors and domestic entrepreneurs, understanding how tax audits work is not merely a compliance exercise—it is a strategic necessity.

At Finlexia Turkish Accounting Firm, we have advised multinational corporations, SMEs, and startups since 2017 on all aspects of Turkish company formation, tax compliance, and corporate governance. Our company formation lawyers team provides a comprehensive, practical overview of tax audits in Türkiye, including triggers, procedures, risks, and best practices for mitigation.

Table of Contents

What Is a Tax Audit in Türkiye?

A tax audit (vergi incelemesi) is a formal examination conducted by authorized tax inspectors to determine whether a taxpayer has correctly declared and paid taxes under Turkish tax legislation. Audits may cover income tax, corporate tax, VAT, withholding tax, stamp duty, and other fiscal obligations.

Audits are governed primarily by the Turkish Tax Procedure Law (VUK) and are conducted by tax inspectors affiliated with the Ministry of Treasury and Finance.

Who Is Subject to Tax Audits?

All taxpayers in Türkiye—regardless of size, sector, or nationality—may be audited. This includes companies established through company formation in Türkiye, branches of foreign companies, liaison offices (within their permitted scope), and individual entrepreneurs.

In practice, audit frequency tends to increase for companies that:

• Operate in high-risk sectors (construction, e-commerce, import/export)
• Have complex transaction structures
• Engage in cross-border trade or transfer pricing
• Report continuous losses or significant VAT refunds

Types of Tax Audits in Türkiye

Turkish tax legislation recognizes several types of audits, each serving distinct purposes. Full-scope audits involve comprehensive examination of all financial records and tax declarations for a specific period. These audits are thorough and can extend back several years, depending on the circumstances.

Limited-scope audits focus on specific tax types or particular transactions. For instance, tax authorities might conduct a targeted VAT audit or examine only withholding tax compliance. These audits are generally shorter in duration but require equally meticulous documentation.

Desk audits are conducted at tax office premises, where taxpayers submit requested documents for review. Field audits, conversely, take place at the taxpayer’s business location, allowing auditors to examine operations firsthand and interview personnel.

1. Full-Scope Tax Audits

These audits examine all tax types and accounting records for a specific period. They are common for larger enterprises and companies structured as a joint stock company formation, particularly where public interest or significant turnover is involved.

2. Limited or Specific Audits

Focused on a particular tax (e.g., VAT or withholding tax) or transaction, these audits are more targeted but can still result in substantial assessments.

3. Desk Audits (Risk-Based Audits)

Using digital data and risk analysis tools, inspectors may request documentation without an on-site visit. These audits have become more prevalent with digitalization initiatives.

4. Transfer Pricing Audits

Companies engaging in related-party transactions, especially multinational groups, are frequently subject to transfer pricing scrutiny.

Common Triggers for Tax Audits

Understanding what prompts tax audits can help businesses maintain practices that minimize audit risk. Significant discrepancies between reported income and industry benchmarks often raise red flags. If your company’s profit margins differ substantially from comparable businesses in your sector, this may attract attention.

Inconsistencies in VAT declarations, particularly when input VAT consistently exceeds output VAT, can trigger investigations. Large or unusual transactions, especially those involving related parties or offshore entities, typically receive additional scrutiny.

Companies that frequently amend tax returns or file late may find themselves subject to increased audit probability. Additionally, businesses in high-risk sectors or those with complex international transactions face higher audit likelihood.

While some audits are random, many are triggered by identifiable risk factors, including:

• Inconsistencies between tax returns and financial statements
• High or repetitive VAT refund claims
• Sudden changes in profitability
• Mismatches between bank records and declared income
• Whistleblower complaints
• Sector-wide audit campaigns

Improper accounting & bookkeeping remains one of the most common reasons companies face audit exposure.

Tax Audit Procedure: Step by Step

Audit Notification

Tax audits usually begin with a formal written notification served to the company or its legal representative.

Document Review and On-Site Examination

Inspectors may review:

• Statutory books and records
• Invoices and contracts
• Bank statements
• Payroll records
• Customs documentation

Failure to maintain proper records or deficiencies in contract drafting & review often complicate this phase.

Draft Tax Audit Report

Inspectors prepare a draft report outlining findings, tax assessments, penalties, and interest.

Taxpayer Defense and Reconciliation

Companies may submit written defenses or request reconciliation (uzlaşma) to reduce penalties and disputed tax amounts.

Final Assessment and Collection

If unresolved, the assessment becomes final and payable, subject to litigation rights.

Common Issues and Penalties

Tax audits frequently identify issues such as insufficient documentation for claimed expenses, incorrect VAT applications, transfer pricing discrepancies in related-party transactions, and classification errors in income or expense categorization.

Penalties for tax violations can be substantial. Late payment penalties, tax loss penalties for underpayment, and special irregularity penalties for serious violations all carry significant financial consequences. In cases involving fraud or intentional evasion, criminal liability may arise.

However, Turkish tax law includes provisions for penalty reduction when taxpayers cooperate fully, correct errors voluntarily, or demonstrate reasonable cause for mistakes. The reconciliation institution allows taxpayers to settle disputes with reduced penalties, avoiding lengthy litigation.

Penalties and Financial Consequences

Tax audits in Türkiye may result in:

• Tax principal assessments
• Tax loss penalties (up to 100% of the unpaid tax)
• Special irregularity fines
• Default interest

For companies with weak corporate governance frameworks, penalties often escalate due to repeated or systemic violations.

Special Considerations by Company Type

Limited Liability Companies

Companies established via limited liability company formation often face audits focused on shareholder transactions, expense deductibility, and VAT compliance.

Joint Stock Companies

Audits commonly address dividend distributions, transfer pricing, and board-level decision documentation, particularly when foreign shareholders are involved.

Tax Audits and Banking Transparency

Inspectors frequently cross-check declared income against bank records. Improper handling of corporate accounts during bank account opening or undocumented cash movements can trigger serious findings.

Importance of Annual Reporting and Record-Keeping

Failure to comply with statutory reporting obligations, including annual report filing, may indirectly increase audit risk. Well-maintained records demonstrate transparency and good faith, often influencing inspector discretion.

How to Prepare for a Tax Audit in Türkiye

Proactive preparation significantly reduces financial and reputational risks. Best practices include:

• Conducting internal tax health checks
• Ensuring accurate and timely bookkeeping
• Aligning contracts with tax treatment
• Maintaining robust corporate documentation
• Seeking ongoing advice from experienced Turkish company formation lawyers

Early legal involvement often prevents minor discrepancies from escalating into major disputes.

Tax Audits Disputes, Settlement, and Litigation

If disagreements arise, taxpayers may:

• Apply for reconciliation before or after assessment
• File lawsuits before Turkish tax courts
• Seek penalty reductions through voluntary disclosure

Strategic decision-making at this stage requires a detailed understanding of both tax audits and procedural timelines.

Why Professional Legal Support Is Essential

Tax audits are not purely accounting exercises; they involve complex legal interpretation, procedural safeguards, and negotiation strategy. Companies without experienced legal counsel often incur unnecessary penalties or miss procedural rights.

At Finlexia Turkish Accounting Firm, our integrated approach combines tax law, corporate governance, and compliance advisory to protect our clients at every stage of the audit process.

Contact us for Tax Audit Services in Türkiye

Tax audits in Türkiye demand thorough preparation, comprehensive documentation, and expert knowledge of Turkish tax law. At Finlexia Turkish Accounting Firm, we have been guiding businesses through complex tax and corporate matters since 2017.

Our multilingual team of experienced attorneys and advisors provides comprehensive support throughout the audit process, from preparation and representation during examinations to appeals when necessary.

Whether you need assistance with audit preparation, ongoing tax audits, corporate governance, or any aspect of doing business in Türkiye, our full-service firm delivers tailored solutions that protect your interests. Contact Finlexia Turkish Accounting Firm today to discuss how we can support your business in navigating Turkish tax regulations with confidence and achieving long-term compliance success.