Income Taxes in Turkey

Corporate Income Taxes in Turkey

The determined basic company income tax rate on business profit is levied by 20% in Turkey.

Withholding Tax (stopaj Vergisi)

According to Turkish tax regulation, certain amount of taxes in Turkey is obtained by means of withholding from the corporates in order to be secure of paying tax by payers.

•  Income tax on salaries of employees
•  rent payments to landlords of the workplace
•  Independent professional service fee payments to resident and non-resident individuals
•  Royalty, license and service fee payments to non-residents.
  withholding taxes are required for companies and they must declare them through their withholding tax returns.

Dividends

Interest

Royalties And Fees

Withholding taxes on received payments of resident corporations:

• Dividends are reqiured to 15%
• The resident corporations taking interest on treasury bills and treasury bonds are subject to pay 0%
• Interest on other bonds and bills derived by resident companies are required to 0%,
• Bank deposits are subject to 10%-18% (for bank deposits opened after January 2, 2013).
• Profit shares paid by participation banks in consideration of participation accounts are subject to 10%-18% (for participation accounts opened after January 2, 2013).
• REPO agreements are subject to 15%.

Withholding taxes on received payments of non-resident corporations:

• Dividends are subject to 15%.
• Interest on treasury-bill and treasury bonds derived by non-resident corporations is subject to 0%.
• Interest on other bonds and bills derived by non-resident corporations is subject to 0%,
  bank deposits are subject to 10%-18% (for bank deposits opened after January 2, 2013).
• Profit shares paid by participation banks in consideration of participation accounts are subject to 10%-18% (for participation accounts opened after January 2, 2013).
• REPO agreements are subject to 15%