Foreign Branch vs. Company in Turkey – Key Differences & Best Choice
Companies with headquarters abroad can operate in Turkey by establishing a branch or a company. There are significant differences between these two structures, and in certain cases, setting up a branch may be more advantageous. Comparison of Foreign Branch and Company in Turkey Criteria Company Branch Legal Entity and Management Has an independent legal entity; […]
Types of VAT Withholding and Rates in Turkey (2025 Updated Guide)
VAT Withholding and Its Role in the Turkish Tax System VAT withholding (KDV Tevkifatı) is a mechanism applied in Turkey to secure tax collection and reduce the risks associated with informal economic activities in specific sectors. Under the Turkish VAT system, a portion of the VAT calculated on certain transactions is withheld by the purchaser […]
What is VAT Withholding Refund in Turkey?
VAT withholding refund is a tax reclaim process that allows businesses to recover excess Value Added Tax (VAT) that cannot be deducted due to withholding mechanisms. This process prevents financial losses from accumulated VAT balances and helps improve cash flow. In Turkey, VAT withholding is widely applied in industries such as construction, consultancy, workforce supply, […]
Self-Employment Income in Turkey: Taxation, Exemptions & Expenses
What is Self-Employment Income in Turkey? Self-Employment Income in Turkey refers to earnings generated through professional, scientific, or artistic activities conducted independently, without an employer, and without a commercial nature. According to Article 65 of the Personal Income Tax Law (PITL), all forms of self-employment income in Turkey fall under this category. Income earned by […]
Inheritance Tax, Inheritance Procedures, and Citizenship by Investment in Turkey
Inheritance Tax In Turkey, inheritance tax is applied to the assets inherited by legal heirs after the death of an individual. This tax is calculated based on the total value of the inheritance as follows: Tax Base Through Inheritance (%) Gratuitous Transfers (%) Up to 1,700,000 TL 1 10 Next 4,000,000 TL 3 15 Next […]
Annual Income Tax Declaration for Employees in Turkey
According to the Turkish Income Tax Law, wages include monetary payments, in-kind benefits, and other earnings convertible into money provided by an employer in return for services. Employees with high levels of income or complex compensation structures may be required to assess their annual income tax declaration obligations carefully under Turkish tax legislation. The circumstances […]
Minimum Wage in Turkey (2026)
Discover the updated minimum wage in Turkey for 2026: Description Gross (TRY) Net (TRY) Minimum Wage 33,030.00 28,075.00 Tip: Knowing the minimum wage is crucial for both employees and employers in Turkey. Insurance Premium Base Earnings Limits Stay updated on social security premiums in Turkey for 2026: Daily Earnings Limit (TRY) Monthly Earnings Limit (TRY) […]
Corporate Taxation in Turkey
Corporate taxation in Turkey is imposed at a rate of 20% on both resident and non-resident companies. Corporations in Turkey are classified as either limited taxpayers or unlimited taxpayers based on their tax liability. Resident vs. Non-Resident Taxpayers Tax Year and Filing Taxable Income Capital Gains Tax Tax Losses Foreign Tax Credit Participation Exemption Holding […]
Transfer Of Imported Goods At Customs And Tax Implications in Turkey
Companies operating in Turkey occasionally transfer goods imported from abroad to other domestic firms at customs without releasing them into free circulation. This practice, known as Transfer Of Imported Goods At Customs, involves specific procedures and tax implications in Turkey. It is crucial for businesses to comply with the applicable legal framework to avoid potential […]
International Tax Environment
Our experienced team at ÖzbekCPA is ready to assist both foreign investors with their operations in Turkey and Turkish investors with their international ventures. Working with our global tax teams in the relevant countries, we ensure that business processes are carried out quickly and efficiently, working closely with project teams to provide quick and practical […]
