How can the relevant tax authority tax a turnkey project?

A relevant tax authority can tax a turnkey project by assessing the income generated from the project, which includes the total contract value and any profit margins. They may apply value-added tax (VAT) or sales tax on the sale of the project, depending on the jurisdiction. Additionally, withholding taxes may be levied on payments to foreign contractors or service providers involved in the project. Compliance with local tax regulations is essential to ensure all applicable taxes are properly calculated and remitted.