Tax System in Turkey


Direct and Indirect Taxes in Turkey
Turkey, with the aim of public services to meet the people of the state and the institutions, which have collected way we mean by law as the definition of tax money. In the Turkish Tax System, taxes are classified under two main headings as indirect taxes and direct taxes. Basically, taxes on income and wealth are called direct taxes, and taxes on expenditures are called indirect taxes.

Income tax
Revenues and income are as follows:

1. Commercial earnings
2. Agricultural earnings
3. Fees
4. Profession earnings
5. Real estate capital income
6. Securities income
7. Other earnings and revenues

Full Liability
Below listed natural persons in Turkey and are taxed on all income and gains they have achieved the outside:

1. Those settled in Turkey
2. (202 of Law No. I varying with Article 1) is connected to official departments and institutions or headquarters entities and enterprises in Turkey said circle, institutions, entities and enterprises of the residents in foreign countries with their work on due to Turkish citizens (of these, such as in the country they are located Those who have been subject to Income Tax or similar tax due to their earnings and revenues are not taxed separately on the mentioned earnings and revenues.)

Below listed are considered one settled in Turkey:

1. Residential, located in Turkey (Residential, which are written in place of the 19th and subsequent articles of the Civil Code)
2. (Law No. 202 paragraph by changing Article 2) more than six months in Turkey is constantly sitting in a calendar year (Temporary separations does not interrupt the residence time in Turkey.)

even if they’re in the country more than six months following written foreigners, settled in Turkey not include:

1. Certain tasks and temporary work or coming to Turkey for work, scholars and scientists, experts, officials, media and press correspondents and situations from the other person charged with or similar to their treatment or rest or travel purposes
2. Arrest, detention in Turkey has not achieved for reasons such as illness or conviction or those who have stayed

Corporation tax
Subject of Tax:

The earnings of the following institutions are subject to corporate tax:

a) Capital companies
b) Cooperatives
c) Economic public institutions
ç) Economic enterprises belonging to associations or foundations
d) Business partnerships
The income of the corporation consists of the income elements that are subject to income tax.

Capital companies:

Established in accordance with the provisions of the Turkish Commercial Code no. In the implementation of this Law, funds subject to the regulation and supervision of the Capital Markets Board and foreign funds similar to these funds shall be considered as capital companies.


Refers to cooperatives established in accordance with the Law on Cooperatives dated 11/24/1969 and numbered 1163 or special laws and foreign cooperatives of similar quality.

Public economic institutions:

Commercial, industrial and agricultural enterprises, which are owned or affiliated to the state, special provincial administrations, municipalities, other public administrations and institutions and whose activities are continuous and other than the first and second paragraphs, are economic public institutions.
Commercial, industrial and agricultural enterprises, which are owned or affiliated to foreign states, foreign public administrations and organizations and which fall outside the first and second paragraphs of this article, are considered as economic public institutions.

Economic enterprises of associations or foundations:

Commercial, industrial and agricultural enterprises belonging to or affiliated with associations or foundations, whose activities are continuous and other than the first and second paragraphs of this article, and similar foreign enterprises are the economic enterprises of associations or foundations. In the implementation of this Law, trade unions; congregations are considered foundations. The fact that the economic enterprises belonging to economic public institutions and associations or foundations are not aimed for earnings, their activities are among the duties assigned by law, the absence of legal entities, the absence of independent accounts and their own capital or workplaces shall not affect their obligations. The fact that the cost of goods or services is only sufficient to cover the cost, not making a profit or allocating the profit for the purposes of establishment does not change their economic quality.

Business partnerships:

It is the business partnerships that the corporations written in the above paragraphs, among themselves or with individual persons or with real persons, demand that such partnerships be established in order to undertake the joint work of a certain business jointly and to share their earnings. Their lack of legal personality does not affect their obligations.

Full and Narrow Liability
Full liability:

Law of the few institutions in the legal or business center located in Turkey Article 1, both are taxed on all income derived outside of Turkey and Turkey.

Narrow liability:

both the legal and business centers of the few institutions in Article 1 of the Law are not in Turkey, they are taxed only on the income that you obtained in Turkey. In narrow liability, corporate income consists of the following earnings and revenues:

a) 04/01/1961 213 dated Tax Law according to which work in Turkey or permanent representative possession of these places by foreign institutions or commercial profits derived from the work done by these representatives (These conditions cause any are to be exported, even institutions they take goods purchased in Turkey, earnings arising from referring to without selling the foreign countries in Turkey, does not count obtained in Turkey. in order to sell in Turkey, the buyer or seller or both, or if the contract of sale in Turkey are made in Turkey.)
b) gains derived from agricultural businesses in Turkey
c) the self-employment income obtained in Turkey
d) The rights to movable and immovable are foreclosed obtained letting in Turkey
d) The capital gains obtained in Turkey
e) Other income and revenues obtained in Turkey

Obtaining in Turkey of this article shall be dealt with as income or gain possession of the subject and permanent representative in Turkey, No. 193, dated 31/12/1960 and the relevant provisions of the Income Tax Act applies.

Legal center:

It is the center shown in the presidential decrees, statutes, main statutes or conventions in the establishment laws of taxable institutions (Article added to article 173 of Decree Law No. 700; Effective: 09.07.2018).

Business center:

It is the center where transactions are de facto collected and managed in terms of business.

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