Corporate Taxes in Turkey

When you plan to establish a company in Turkey, you must consider all aspects of the process. One of the most important factors is taxation, as failure to comply with tax regulations can create significant issues for you. Not only in Turkey but in most countries, taxes are the most critical expense that must be paid legally to ensure the survival of a company.

Taxes in Türkiye play a crucial role in business operations, and understanding the tax system is essential for maintaining compliance and avoiding financial penalties.

Corporate taxes in Turkey are an essential topic that every investor should be aware of. If you want to learn everything about corporate taxes in Turkey, follow this article until the end.

Types of Corporate Taxes in Turkey

Corporate taxes in Turkey include the following:

Income Tax

The most important tax when registering a company in Turkey is income tax. When you conduct financial activities using your company’s bank account, you must allocate a portion of your earnings as tax payments. It is not possible to determine a fixed rate for corporate income tax in Turkey, as it varies based on the company’s revenue. To ensure accurate tax payments, you must carefully calculate your financial obligations.

Withholding Tax (Stopaj)

Another crucial tax that must be paid after registering a company in Turkey is withholding tax (Stopaj). This tax, similar to property tax in Iran, applies to rental payments. However, the key difference in Turkey is that the responsibility for paying this tax lies with the business owner rather than the property owner.

One essential aspect of this tax is the need to thoroughly assess the status of any property you intend to purchase. If the property is registered under the company’s name, the municipality will evaluate its rental value and determine the payable tax accordingly.

Some individuals mistakenly believe that renting a residential property in Turkey exempts them from withholding tax. This assumption is incorrect, and many newcomers make this mistake.

Minimum Tax

In some cases, a company registered in Turkey may generate little to no revenue or even operate at a loss. Even in such situations, the company is still required to pay certain mandatory taxes, referred to as minimum tax. The purpose of this tax is to fulfill a financial obligation, allowing the company to continue legally operating in Turkey.

How Much Is the Minimum Corporate Tax in Turkey?

Once you decide to register a company in Turkey, you become subject to tax payments. The amount of minimum tax cannot be predetermined, as it depends on the company’s registered articles of association. Your accountant must carefully review this matter and prepare a tax report on a monthly basis.

You can pay taxes conveniently through your banking app in Turkey. By scanning the QR code on your tax statement, you can easily check your company’s outstanding tax liabilities with the Turkish tax authorities. Timely tax payments are essential to ensure smooth business operations in Turkey without legal complications.

How Are Import and Export Taxes Managed in Turkey?

Establishing a company in the import and export sector is one of the most attractive business opportunities for Iranian investors. If you export your products from Turkey to other countries, you are exempt from paying taxes in Türkiye. The Turkish government has introduced this benefit to encourage exports and has made significant efforts to create a favorable environment for exporters.

However, if you import goods into Turkey from abroad, you must pay approximately 20% to 25% of your profit to the Turkish tax authorities. This is one of the key aspects of taxes in Türkiye that importers must consider when planning their business operations.

Similarly, if your products are manufactured in Iran and sold in Turkey, they are also subject to taxes in Türkiye. If you produce a product in Iran and sell it in Turkey, you must pay 20% to 25% in taxes. Even if the Iranian-produced goods are re-exported from Turkey to other countries, they remain taxable under the country’s tax regulations.

Understanding taxes in Türkiye is crucial for businesses to ensure compliance with tax laws and avoid unexpected financial burdens.

What Are the Required Documents for Tax Payments in Turkey?

To pay taxes in Turkey, specific documents are required, which may vary depending on the type of tax. Some of the general documents typically needed for tax payments include:

• Invoice for the sale of goods or services
• Invoice for purchased goods
• Payroll records of company employees
• Financial audit reports

Final Thoughts

If you plan to continue your business operations in Turkey, you must ensure regular tax payments. Throughout this article, we have provided valuable information about corporate taxes in Turkey, which will help you manage your tax obligations more effectively and strategically.

Hiring an accountant or consulting professional tax advisors can significantly assist you in tax compliance and help reduce tax risks. Additionally, corporate taxes in Turkey consist of various types, each with its own regulations and conditions, making tax knowledge essential to avoid financial or legal issues.

The company registration process in Turkey should also be handled by an experienced professional to minimize potential future complications.

If you are considering registering a company in Turkey and need further information, you can contact the professional experts at 4K Group through the phone numbers listed on their website.

Frequently Asked Questions

1. What is the basis for calculating payroll tax in Turkey?
Payroll tax in Turkey is calculated based on employees’ wages and salaries.

2. Are all companies in Turkey subject to taxation?
Yes, all companies—whether manufacturing, service-based, or trading firms—are required to pay taxes in Turkey.

3. Is corporate tax in Turkey based on company profits?
Yes, corporate profits are one of the key factors in determining tax obligations in Turkey.