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Tax Services

Overview of tax system in Turkey

The new Business Income Tax Act has been enforced in 2006. Transfer tax system and CFC tax system are formed nowadays.

Main tax items in Turkey:

Direct tax:

Corporate Income Tax, Personal Income Tax

Indirect tax:

Value Added Tax, Special Consumption Tax, Banking and Insurance Transaction Tax, Stamp tax, Assets Tax, Motor Vehicle Tax

Personal Income Tax

Because of the difference of scope of taxable income, it is necessary to judge if the person is resident or not. The residents in Turkey should satisfy one of the following conditions.

  • The person has the fixed address in Turkey.
  • The stay in Turkey more than 183 days within one year.

The identification of non-resident is as follows.

  • The businessman who has the special purpose for a temporary period.
  • Scientists, artistes, professionals, journalists, tourists. i.e.
  • The person who restricted in Turkey because of illness and guilt.

The targets of tax payers:

The person who satisfies the following conditions will be the target of taxpayer.

  • The residents in Turkey
  • The Turkish who live aboard but employed by government, corporations, central government agencies.

The income of non-residents will be taxable only for the income in Turkey. And the income in other countries will be taxable in other countries. The tax period in Turkey is from January to December. In addition, the following incomes will be taxable for individuals.

・  Income of business

・  Income from agriculture

・  Income of private business for providing services

・  Income from property

・  Income from investment

・  Other incomes

Business Income Tax

The taxpayers of business income tax are demotic corporations and foreign corporations. Demotic corporations include the corporations established and registered in Turkey and the foreign corporations that head officers are in Turkey. Foreign corporations are that they are the subsidiaries in Turkey. The following organizations that are not corporations are also the targets of business income tax.

  • Organizations have stockholders’ equity
  • Cooperative associations
  • National economical organizations
  • Economical organizations owned by foundation and agencies
  • Others exceptions

Furthermore, the capital gain is generally taxable same with other income except for some special examples.

To learn more about our incorporation assistance and a range of services of tax in Turkey, send us a message or call us at +81-3-5369-2930.