Taxation in Turkey

The company’s taxation system depends on its legal status. The aggregate corporate tax rate for corporations and limited liability companies is 33%. The basic amount of corporate income tax is 20% of the company’s profits. The personal income tax is levied both from citizens of Turkey and other countries. For foreign citizens, the amount of tax is calculated on the basis of the income received as a result of any activity in the territory of Turkey (work, ownership of property, the implementation of commercial operations, etc.). The personal income tax rate varies from 15% to 35%.

Social insurance

The deductions are included in the list of expenses of the employer for the payment of labor. The employer’s contribution will be 19.5%, staff contributions - 14%.

VAT

The average VAT is 18%.

Stamp duty

The amount of the stamp duty is determined by the value of the document. It is charged on various contracts, agreements, letters of guarantee, bills of exchange, payment and financial statements.

Taxation of property

Property tax applies to real estate owners and land plots owners. It is payable annually in the amount from 0.3% to 0.6%. When selling property to the buyer and seller, it is necessary to pay an amount equal to 4.8% of the price of the property being sold. If the property is invested in cash, it is possible to lower the rate to 2.4%. The amount of the gift tax or inheritance is 4-30% of the value of the item.