Turkey: Guidance on direct and indirect taxation of sports sponsorship expenses; certain stamp duty refund claims require litigation
Guide clarifying sponsorship expenses in sports, detailing distinctions between sponsorship and advertising, tax deductibility, and VAT implications
The Revenue Administration issued a guide clarifying sponsorship expenses in sports, detailing distinctions between sponsorship and advertising, tax deductibility, and value added tax (VAT) implications.
- Sponsorship expenses are deductible at 100% for amateur sports and 50% for professional sports under corporate and personal income tax laws.
- VAT exemptions apply to in-kind sponsorships for public institutions, while advertising expenses are subject to VAT.
- Documentation must include written agreements and tax clearance certificates.
In addition, the Council of State's Tax Litigation Chambers in May 2025 held that requests for stamp duty refunds on restoration works for protected cultural properties cannot proceed under the error correction procedure of the Tax Procedure Law. Rather, such disputes require legal interpretation, specifically regarding whether the exemption in article 21(3) of Law No. 2863 includes stamp duty, thus necessitating regular tax litigation instead.
For further information, contact a KPMG tax professional in Turkey:
Celal Küpeli | ckupeli@kpmg.com
Beyza Özsoy | bozsoy@kpmg.com
Erdem Erdem | erdemerdem@kpmg.com