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Tax Law
The ratio of corporate tax is 20%.
Complete taxpayers are subjected to a 15% ratio of tax deduction from the profit shares in which they acquire. However the share profit of up to 239.000 TL is exempted from tax. Narrow taxpayers (the ones which are residing abroad) do not have to declare their profit share income they acquired in Turkey.
Securities which have been sold out by the banks and agent institutions apart from the investment partners’ participation shares for the profits gained by participation shares the income tax stoppage rate is 0 %, and for other profits it is 10%.
Payments gained from the copyrights and patents are subjected to 20% income stoppage tax.
Keeping in mind that the tax system in which the income has been gained can or cannot provide the possibility to have the same level of tax in which the Turkish tax system provides (same tax capacity) and keeping in mind the information exchange matter as well, in countries which the council of ministers have declared for entities which are residing or functioning (including the business places found in the countries with these qualities of complete taxpayer institutions) from every payment made in cash, to accounts or assed without looking if these payments may be subjected to tax or not or if the institution is charged with it or not a 30 % tax cut is made.
Income tax
ratios
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Income assessment
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Tax rate
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0 – 8 700 TL
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15%
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8 701 – 22 000 TL
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20%
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22 001 – 50 000 TL
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27%
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50 001 – …
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35%
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Social insurance
institution premium rates
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Type of Insurance
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Employee share (%)
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Employer share (%)
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Total
(%)
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Premium for Work Accidents and Occupational
Illnesses (According to the danger level of the workplace the rates may
change)
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-
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1-6,5
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1-6,5
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General Health Insurance
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5
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7,5
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12,5
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Disability, Old age and Death Insurance Premium
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9
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11
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20
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Disability,
Old age and Death Insurance Premium
(for underground works and heavy, abrasive and
poisonous works)
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9
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14-21
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23-30
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Voluntary Insurance
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32
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-
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32
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Social Security Supporting Premium (for people who
are retired workers according to the 506 numbered law)
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7,5
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23,5-29
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31-36,5
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Value added tax (VAT- Katma Deger Vergisi KDV) rate is 18%.
VAT rate 1%; certain agricultural products, newspapers and magazines, construction promise works made to housing establishment cooperation’s, funeral services etc.
VAT rate 8%, certain food substances, cinema, theatres, operas, operetta, bale, museum entrance fees, shows made form every type of material, slippers, boots and similar things, bags, suitcases, trunks and similar things made from every type of material, textile and garment works made as fashion, humane medical products licensed and allowed to be imported by the Health Ministry, books etc.
Property Tax
rates
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Properties in
the Metropolitan Municipality and in the adjacent areas
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Normal Rate
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On Buildings (Households)
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0,2%
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0,1%
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On Buildings (others)
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0,4%
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0,2%
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On Lands
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0,6%
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0,3%
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On Estates
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0,2%
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0,1%
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During the period of buying a property, the buyer and seller must separately pay a land registry procedure fee which is 15% of the sales procedure. The sales of properties which are included in the special assets of real people are not subjected to VAT. For property sales made by institutions a VAT of 18 % is applied. However for places which net area does not exceed 150 M2 a VAT of 1% is applied.
The conflicts are solved at the administrative stages in the frame of the Tax Procedure Law (income, Institutions, value added tax, inheritance and succession, estate, customs, motor vehicles and other taxes and other legal dues). At the administrative stages tax conflicts may be solved by correction, reduction of punishment, regret and amendment and also coming to an agreement.
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