Tax
Corporate tax at 25 percent with VAT and a general anti-avoidance approach
Corporate income tax is levied under Law No. 5520 at 25 percent, raised from 20 percent in 2023, with a higher rate for financial institutions. Personal income tax is progressive and VAT under Law No. 3065 has a standard rate of 20 percent.
Key rules
- Jurisdiction — National. Administered by the Revenue Administration; disputes go to the tax courts.
- Deadline — Corporate tax return: by the end of the fourth month following the accounting period
- Deadline — Monthly VAT return: by the 28th of the following month
Governing law
- Corporate Tax Law No. 55202006
- Income Tax Law No. 1931960
- Value Added Tax Law No. 30651984
- Tax Procedure Law No. 2131961
In practice
The corporate rate rose to 25 percent for 2023 onwards, with 30 percent applying to banks and financial leasing, factoring and financing companies. VAT was raised to 20 percent in July 2023. Turkey applies transfer pricing rules and thin capitalisation limits, and has a broad treaty network. Inflation accounting rules under the Tax Procedure Law were reactivated for 2023 year-ends, which materially affects taxable profit computation and is a live issue for anyone advising on Turkish accounts. Tax disputes proceed to the tax courts and then the Council of State, with a settlement mechanism available before litigation.