Tax Procedural Law regulates ways of implementation and use of rights, responsibilities and tasks arising from tax relations as well as accrual and assessment principles. This law comprises the procedures and main rules of all tax laws. The law covers general taxes, duties and fees imposed at a nationwide level as well as taxes, duties and fees which are imposed at the provincial level. However, taxes, duties and fees collected by customs administrations are not within the scope of the Tax Procedure Law.
Taxes are collected in accordance with a calendar determined and published yearly by the Revenue Administration of the Turkish Republic. Starting and finishing dates for paying the taxes are published with this tax calendar at the beginning of a new year. However, the government might change and extend the duration in favour of the taxpayers.
| No | Name | Definition | Taxpayer |
Tax rate (2024) |
| 1 | Corporate Income Taxes | Corporate income tax is the tax collected on corporate annual profit. | JSC
LLC Branch |
%25
%20 (solely on revenues of export) |
| 2 | Personal Income Taxes | Personal income tax is the tax collected on personal profit. Tax base is calculated on annual income. It is deducted from the employees’ monthly gross salary by withholding the amount. | Individuals
(The employer pays on behalf of the employee.) |
15% up to TRY110.000
20% from TRY 110.000 to TRY230.000 27% from TRY230.000 to TRY570.000 35% from TRY570.000 to TRY3.000.000 40% more than TRY3.000.000 |
| 3 | Withholding Taxes | Withholding tax (retention tax) is a requirement for the payer of an item of income to withhold (or deduct) the tax from the payment, and pay that tax to the government | Payers of the mentioned amounts withhold the tax and directly pay to the state. | Salary Payments: Minimum rate is %15 up to 70.000 TL net monthly salary.
Rental Income: %20 Independent business income: %20 Other procurements: %5 |
| 4 | Value added taxes (VAT) | Goods and services imported into Turkey or deliveries of goods and services within Turkey are subjected to VAT. | Consumers of the mentioned products (natural or legal persons) | The rate of VAT changes depending on the sectors goods and services.
For import activity, good and services (in general): 20% |
| 5 | Special Consumption Taxes | Four groups of products and services are subject to SCT. | Consumers of the mentioned products (natural or legal persons ) | Petroleum products and derivatives: natural gas, oil and solvents,
Automobiles and other vehicles, motorcycles, planes, helicopters, yachts; Tobacco and tobacco products, Alcoholic beverages and luxury products Percentages depend on the specific type of the products. |
| 6 | Customs Duty | Customs duties are calculated based on CIF Value (Goods Cost + Freight + Insurance) for Imports according to the customs tariff in force. For commercial transactions, customs tariff determined by import regime decision applies. | Exporters and importers between Turkey and overseas borders. | The tax rate for items sent from or to be sent directly to countries that are members of the European Union is 18%.
The tax rate for goods sent from or to be sent directly to countries that are not members of the European Union is 20%. Additional Customs Duty for members of the European Union is 0%. |
| 7 | Stamp
Duty |
Stamp duty is the standard tax applied for
–official documents including contracts, notes payable, –capital contributions, letters of credit/guarantee, –financial statements, and payrolls. |
Signing parties of the documents subject to the tax. | Fixed sum for certain types of documents
For others, varies between 0.189% to 0.948% of the value of the document. |
| 8 | Real Estate
Tax |
Levied based on the land or building owned by the individuals or corporations | House, workplace, land or plot owners. | House: %0,002
Workplace: %0,004 Land: %0.004 Plot: %0.002 |
| 9 | Motor Vehicle
Tax |
Levied each year, for each motor vehicle owned by real and legal persons. “MVT” is being levied and collected accordingly with the age and engine capacity of the vehicles each year. | Motor vehicle owners (natural or legal persons) | On “MVT”, the yearly increase rate is determined by the Presidential Decree.
Rates and amounts depends on the age and the motor capacity of the vehicle |
| 10 | Tax on Dividends
Distribution |
Tax base is income generated and shared by the JSC. | The local withholding tax rate for distribution of dividends is 15%, in principle. |
