Withholding tax base for payments to abroad (Gross up or net?) in Turkey

According to article 30 of the corporate tax law, corporation tax withholding shall be made from the various earnings and incomes of the corporations (e.g. royalty payments) that are subject to limited taxation, by those that pay and assess these earnings and incomes in cash or on the record, including the advances.
 

There are two ways to compute the withholding tax. One of them is gross-up method and the other one is to withhold tax from the invoice amount. The method to be applied can be chosen with the agreement of the parties. (We recommend that this agreement should be written and signed by the parties.) 

 

Example:

 

	Invoice amount (USD)	1.000,00
	Wth Tax Rate (For example)	10%
	Gross Up	Net
Withholding Tax Base	1.111,11	1.000,00
Withholding Tax	111,11	100,00
amount to be paid	1.000,00	900,00