Turkish tax laws do not only adopt the declaration method, but also the method of deduction at the origin. The laws charge those who are obliged to make a tax withholding, with the duty to collect in advance and to pay the tax before making to the beneiciaries the payments that are clearly speciied by laws, to the tax office. The tax deduction made during the payment is called the Withholding Tax or Stoppage Tax.

All the transactions under this practice are performed between the withholder and the beneiciary. During withholding, the real and legal entities who make payment to the beneiciary pay the net amount remaining after having made the tax withholding to the beneiciary and they inform the relevant tax office with a withholding tax return within the time periods specified in the law of the incomes subjected to withholding and the amount of withholding they have made on such incomes.

In the case that these incomes are subjected to tax return, the taxes withheld by those who made the payment on behalf of those who made these incomes, may be set of against the tax calculated on the annual return. In cases where the income on which a withholding is levied is not declared, the tax paid by withholding becomes the final tax.