Türkiye taxes corporate profits at a headline 25%, applies VAT at three rates and runs an almost fully electronic filing system. This guide summarises what a company operating in Türkiye actually pays and files.
Last reviewed: August 2026
The standard corporate income tax (CIT) rate is 25%. Banks and financial-sector institutions pay 30%. Exporting companies benefit from a reduced rate on qualifying export income — one of several incentives that reward outward-facing businesses. Provisional CIT is paid quarterly against the annual liability, and the annual return is filed in the following year.
Turkish VAT (KDV) applies at three rates: 1% (a narrow list including certain agricultural goods), 10% (many food items, some services) and the standard 20% covering most goods and services. VAT returns are filed monthly. Input VAT is credited against output VAT; refund mechanisms exist for exporters and reduced-rate sellers.
Employment and personal income is taxed on a progressive scale from 15% to 40%, with brackets updated annually. Employers withhold income tax and stamp duty through payroll, and a minimum-wage-level exemption applies to all employment income. On top of gross salary, the employer bears social security contributions of roughly 16.75–19.75% depending on sector and incentive eligibility — so total employer cost is typically around 1.2× gross salary.
Türkiye's tax administration is heavily digitised: e-invoice (e-fatura), e-archive invoice, e-ledger (e-defter) and e-declarations are mandatory for most companies above modest thresholds. This is good news for foreign founders — filings, ledgers and invoices can be managed entirely online, which is exactly the layer a technology platform automates.
| Filing | Frequency |
|---|---|
| VAT return (KDV) | Monthly |
| Withholding return (Muhtasar & SGK combined) | Monthly |
| Provisional corporate tax | Quarterly |
| Annual corporate income tax return | Annually |
| E-ledger submissions (berat) | Monthly/quarterly per scope |
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This guide is for general information only and does not constitute tax, legal or investment advice. Figures are periodically reviewed and may change; verify current rates with official sources. Compiled from public data of the Investment Office of the Presidency of Türkiye (invest.gov.tr) and Turkish official gazette announcements. yenisirketim.com is a technology and business support platform; statutory accountancy services are performed by independent licensed professionals.