What Is a Potential Tax Number and How Does a Foreign Partner Obtain One?

A potential tax number is a personal tax identification number issued by the Revenue Administration (GİB) to a person who is not a Turkish citizen, before any tax liability has been opened in Turkey. If a foreign investor will become a shareholder or manager of a company in Turkey, they must obtain this number before the capital account is opened at the bank and before the formation application is completed.

The number on its own does not create a tax debt or a filing obligation. Its function is to allow public institutions and banks to identify the foreign person in their records with a single number. In this article, we explain step by step the legal basis of the number, the ways to obtain it through the Digital Tax Office and the tax office, and where it is entered in the company formation file.

Why is a potential tax number needed?

For Turkish citizens, the Turkish ID number is also used in tax procedures, so they do not need to obtain a separate number. A foreign person, however, has no such number to identify them in records in Turkey. The potential tax number fills this gap and makes the person identifiable in the tax administration’s system.

There are two legal bases. Article 8 of Tax Procedure Law No. 213 states that tax numbers will be issued to individuals and legal entities of Turkish nationality; it also leaves to the Ministry the authority to make the use of the number mandatory in transactions and documents. Law No. 4358, published in the Official Gazette of 4 April 1998, requires public administrations and other persons to identify the other party’s tax identification number and enter it in their records in transactions specified by the Ministry.

Read together, these two provisions have the following practical result: a foreign investor needs the number as soon as they become party to a transaction requiring a tax identification number. Company formation is one of these transactions.

What does the word “potential” in its name mean?

The word “potential” means that the number is issued without being tied to any activity or income declaration. A person who obtains the number therefore does not automatically become a personal income taxpayer. If they start a taxable activity in Turkey, their tax liability is opened separately, under its own rules.

This distinction is often confused among investors. One of the questions our clients ask most often is whether they will have to file a return every month after obtaining the number. Becoming a shareholder in a company or being appointed as a manager does not by itself trigger a personal filing obligation; obligations arise through the company’s legal personality.

In which transactions is a tax number required for foreigners?

In company formation, the first place the number is requested is the bank. The Invest in Türkiye company formation guide states that a potential tax identification number must be obtained from the tax office for shareholders and board members who are not Turkish citizens, and that this number is a prerequisite for opening the bank account into which the capital will be deposited.

The number is then also used in the formation application. The foreign shareholder’s identity information is entered in the formation records with this number, together with passport details. We explained the general order of company formation in our how to set up a company guide; here we only cover the number’s place in that order.

There may also be situations outside company formation in which the number is requested. Since Law No. 4358 gives the Ministry the authority to determine its scope, the institution carrying out the transaction tells you in which transaction the number is required. In practice, it is not surprising for a foreign person who will be party to a bank, a public institution or a purchase or sale to be asked for the number.

Potential tax identification number, foreigner identification number and company tax number

In a file with foreign shareholders, you may come across three different numbers, and they are often confused. The potential tax identification number belongs to the individual and is obtained before formation. The foreigner identification number is associated with procedures such as residence permits, while the company’s tax number is created upon registration and belongs to the legal entity.

The most important row of the table is the last one: the foreign shareholder uses their personal number at formation, but once the company is established, all transactions are carried out with the company’s own number. Invoices cannot be issued on behalf of the company with a personal number.

How to obtain a potential tax number in 4 steps

You can obtain the number in two ways: through the Revenue Administration’s online form or by going to a tax office. The four steps below start with the preparation common to both and end with entering the number in the formation file.

Step 1: Fix your passport details in a single spelling

Before moving on to the application, write down your first name, surname, place of birth, and mother’s and father’s names exactly as spelled in your passport. This information will later also appear in the power of attorney, the notarized translation and the bank records. Using exactly the same spelling, letter for letter, in all of them prevents rework caused by name mismatches later on.

This check is even more important for investors with two first names or two surnames, or with letters in their name that do not exist in the Turkish alphabet. If there is a difference between the spelling in the machine-readable line of the passport and the spelling on the front page, decide at the outset which one to use and stick to it in all documents.

Step 2: Complete the Digital Tax Office form

The Revenue Administration accepts applications from foreigners through the Potential Tax Identification Number Application for Foreigners screen in the Digital Tax Office. The form is bilingual, in Turkish and English. It includes fields for first name, surname, gender, place of birth, mother’s and father’s names, country, passport number, telephone and address.

The form also has a foreigner identification number field. An investor who has no residence permit and has not yet obtained such a number is not expected to complete this field. After confirming that the information is correct, you submit the application.

Step 3: Apply to the tax office if necessary

If the online form is not suitable for you, or if the system cannot verify the information you entered, the tax identification number application can also be made at a tax office. On this route, you go in person with your passport, or your proxy representing you goes. Since tax offices may request the original passport, a photocopy or a certified copy, we recommend confirming the document list with the relevant office before you go.

Step 4: Enter the number in the formation file

When you receive the number, keep it like a separate document and share it with everyone involved in the formation file. The number goes first to the bank that will open the capital account, and then to the person preparing the formation application. If the number was obtained before the power of attorney was drawn up, having the number written into the power of attorney as well speeds up the procedures.

If obtained through a proxy, what should the power of attorney say?

The power of attorney must explicitly state that the proxy may obtain a tax identification number or potential tax identification number on your behalf. Invest in Türkiye states that a power of attorney specifically showing authority for this transaction is required. A power of attorney with general wording is often not considered sufficient at the tax office.

Preparing the power of attorney abroad adds a chain of legalization and translation to it. We covered this chain and how the document is made valid abroad in detail in our article to company formation in Turkey for foreigners . What matters here is that the tax number authority appears in the same text as the bank and formation authorities, as a separate clause.

If the investor will come to Turkey for a short visit, obtaining the number themselves during that visit is also an option. In this case, only the remaining procedures are written into the power of attorney. Which option requires less correspondence depends on the date of the visit and when the signing appointment will be made.

Capital and registration stage after the number

Once you have the number, the capital account comes next. According to Invest in Türkiye, in a joint stock company at least 25% of the subscribed capital is deposited at the bank before registration, and the bank letter showing this goes into the registration file. A limited company has no such advance payment requirement; the capital may be paid within 24 months following formation.

The same guide also states that 0.04% of the capital is deposited into the Competition Authority account during formation. These payments are the same for companies with foreign shareholders and domestic companies; the only difference for a foreign shareholder is that the personal number must be obtained first for the account to be opened.

After registration, the trade registry office sends the company formation form, which also includes the tax number notification, to the tax office. This creates the company’s own tax registration, and the foreign shareholder’s personal number moves into the background in company transactions. From this point on, the personal number is used for records relating to the person, such as shareholding information and dividends.

Mistakes we often see in practice

The potential tax number is a simple procedure, but if it is placed in the wrong spot on the formation timeline, it can delay the whole sequence. The disruptions we encounter most often in files with foreign shareholders are:

• Remembering the number only after the bank appointment has been made, and postponing the account opening
• Spelling the first name and surname on the form differently from the passport, causing mismatches in later documents
• Forgetting the number for a foreign manager to be appointed to the board or as manager because they are not a shareholder
• Not including the authority to obtain a tax number in the power of attorney, and the proxy being turned away at the tax office
• Trying to use the personal number for transactions on behalf of the company after registration as well

All of these mistakes can be prevented with a single checklist before formation begins. When we start a formation, we track the number status for each foreign shareholder and manager on a separate line.

Information that must be kept up to date after the number is obtained

The number is issued once, but the information linked to it may change. When the investor’s passport is renewed, the new passport number comes into play, and when they obtain a residence permit in Turkey, so does the foreigner identification number. After these changes, we recommend checking with the tax office whether the information in your tax records is up to date.

Address and telephone information also matter. The contact information the tax administration will use to reach you is the information you gave on the form; if this information becomes outdated when you move abroad or your number changes, notifications to you may be delayed.

Last updated: 17.10.2026