Tax Advantages in Medical Reporting Activities From Turkey: What You Need to Know

Table of Contents

• What Are Medical Reporting Activities?

• What is Medical Reporting?

• Main Objectives of Medical Reporting Activities

• Areas of Use for Medical Reporting

• Medical Reporting and Tax Advantages

• Example: Medical Reporting and Tax Deductions

• Institutions That Can Offer Medical Reporting Services in Turkey

• Frequently Asked Questions (FAQ)

• Tax Deduction Potential for Medical Reporting Activities

• Conclusion: Benefit from Tax Deductions on Your Medical Reporting Activities!

What Are Medical Reporting Activities? Tax Deduction Opportunities and What to Watch Out For
💡 Did you know that you will pay 5 times less tax when providing medical reporting services abroad? What does the 80% income exemption mean, and for which services is it valid?

Medical reporting is a crucial activity in enhancing healthcare quality, monitoring patient treatment processes, and conducting scientific research. However, did you know that these activities are not limited to the healthcare sector, and there are tax advantages available?

Today, we will explain how medical reporting services can be subject to tax deductions, under what conditions your earnings can be excluded from corporate taxes, and how these services should be provided.

What is Medical Reporting?
Medical reporting involves the collection and organization of data related to a patient's health status, treatments, and related processes.

These reports are not only used in the healthcare industry but also by pharmaceutical companies, scientific research, legal cases, and insurance companies.

Main Objectives of Medical Reporting Activities

• Improving Healthcare Quality: Enhancing patient care quality.

• Providing Information to Governments and Payers: Reporting on the provision of healthcare services.

• Providing Data for Medical Research: Enabling more efficient research.

• Providing Information to Patients and Families: Informing patients and families about medical conditions.

Areas of Use for Medical Reporting
Medical reports are often used as evidence in pharmaceutical industries, scientific research, insurance transactions, and legal cases. They are also provided to institutional clients such as foreign pharmaceutical companies, health insurance companies, and law firms.

Medical Reporting and Tax Advantages
A company offering medical reporting services can exclude 80% of its income from corporate or income tax.

The relevant legal article states:

“Entities that operate in the fields of architecture, engineering, design, software, medical reporting, accounting, call centers, and data storage services, and are directly provided to foreign institutions, may exclude 80% of their earnings from income tax, as long as the services are exclusively used abroad.”

However, there are certain conditions:

• Must Be Directly Provided to Foreign Entities: If a company provides medical reporting services, the service must be directly provided to a foreign entity. For instance, if an intermediary company does not directly provide the service to an overseas client, it cannot benefit from the tax exemption.

• Must Be Included in the Main Contract: The activity of medical reporting must be included in the company’s main contract for the income from these services to be eligible for tax deduction.

Example: Medical Reporting and Tax Deductions
Valid Case: A laboratory sends test results to an insurance company abroad as a report. This income can be deducted from corporate taxes.
Invalid Case: If an intermediary company only forwards reports to foreign clients without offering the service directly, this income is not eligible for tax deductions.

Institutions That Can Offer Medical Reporting Services in Turkey
The following institutions in Turkey can offer medical reporting services:

• University Hospitals

• Private Hospitals and Medical Research Centers

• Private Healthcare Institutions

• Imaging Centers and Laboratory Testing Facilities

• Pharmaceutical Companies and Medical Device Manufacturers

Frequently Asked Questions (FAQ)

• Under what conditions can earnings from medical reporting services be deducted from corporate tax?
  The earnings must be directly provided to a foreign entity, and the activity must be listed in the company's main contract.

• Which institutions can provide medical reporting services?
  University hospitals, private healthcare institutions, pharmaceutical companies, and medical device manufacturers can offer these services.

• Does the medical reporting activity have to take place in Turkey?
  Yes, the activity must take place in Turkey.

• Can companies in Turkey receive tax deductions for earnings from medical reporting services?
  Turkish companies can only apply tax deductions for earnings from medical reporting services provided to foreign clients.

Tax Deduction Potential for Medical Reporting Activities

Conclusion: Benefit from Tax Deductions on Your Medical Reporting Activities!
In order to benefit from tax deductions on earnings from medical reporting activities, it is essential to provide the services correctly and meet the necessary conditions. This process can be complex and requires expertise. If you wish to take advantage of tax benefits related to medical reporting services, it is recommended to consult with a professional accountant.

Our team can help you take the right steps and ensure that you get the maximum benefit from tax deductions.

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