İSTANBUL SERBEST MUHASEBECİ
Law No. 3568 regulates the accounting and financial advisory profession in Turkey. Its primary goal is to ensure reliable financial reporting, auditing, and compliance for businesses operating in Turkey. The law establishes a strict distinction between those who keep the books and those who audit/certify them.
1. The Two Main Professional Titles
In Turkey, accounting professionals are divided into two distinct categories. It is crucial for foreign businesses to understand the difference:
A. Independent Accountant and Financial Advisor (SMMM)
Role: These are the operational accountants.
Duties: They keep accounting records, prepare balance sheets, profit/loss statements, and tax declarations. They also provide consultancy on setting up accounting systems and financial management.
Key Restriction: They prepare the work but do not have "Certification" (Tax Audit) authority at the highest level.
B. Certified Public Accountant (YMM) — "Sworn" Financial Advisor
Role: These are senior-level auditors with "Certification" authority.
Duties: They certify that financial statements and tax returns comply with the law. Their certification is accepted by the government as a formal audit.
Key Restriction: To ensure independence, YMMs are strictly prohibited from keeping accounting books or managing an accounting office. They act only as auditors/consultants.
2. Can Foreigners Practice in Turkey?
The law generally requires Turkish citizenship to practice these professions, but there are important exceptions for foreigners:
Reciprocity Principle: Foreigners can be authorized to work as Financial Advisors in Turkey if their home country grants the same rights to Turkish professionals.
Presidential Approval: Foreigners may be allowed to practice under the "Certified Public Accountant" (YMM) title with the specific approval of the President of Turkey.
3. Professional Liability (Crucial for Investors)
Turkish law holds accountants highly accountable, which provides security for foreign investors:
Joint Liability: If a Financial Advisor (SMMM) or Certified Accountant (YMM) files an inaccurate report or tax return, they are jointly and severally liable with the business owner for any resulting tax loss or penalties.
Disciplinary Action: Professionals face strict penalties ranging from warnings to permanent expulsion from the profession for unethical behavior or negligence.
4. Qualification Standards
The standards to enter the profession are high:
Education: Must have a university degree in Law, Economics, Finance, Banking, or Business Administration.
Experience: A 3-year internship is required for Financial Advisors (SMMM).
Exam: Candidates must pass a centralized professional examination.
Seniority for YMM: To become a Certified Public Accountant (YMM), a professional must have already worked as a Financial Advisor for at least 10 years and pass a rigorous additional exam.
5. Fees and Wages
Minimum Fee Tariff: You cannot negotiate fees below a certain limit. The Ministry of Finance approves a "Minimum Wage Tariff" annually.
Prohibition: It is illegal for professionals to accept work for fees lower than this official tariff.
6. Governance
All professionals must be members of the Chambers of Certified Public Accountants and the Union (TÜRMOB). These bodies regulate ethics, exams, and licenses.
