Overview of Stamp Tax in Turkey
Stamp Tax in Turkey is a transaction-based tax imposed on a wide range of documents, including contracts, payrolls, and financial statements. The applicable rates range between 0.189% and 0.948%, depending on the document type and monetary value involved. For salary payments, a 0.759% stamp tax is applied on the gross amount. Some documents, such as printed financial statements, are subject to fixed stamp tax amounts instead of percentage-based rates.
Legal Basis of Stamp Tax
The legal basis for Stamp Tax in Turkey is established under Law No. 488, which outlines.
- Article 1 of the Law defines the conditions under which stamp tax liability arises.
- Annex (1) lists the types of documents subject to tax and their respective rates or fixed values.
- Annex (2) outlines the documents exempt from stamp tax.
The term “papers” under the law refers to written and signed documents used as evidence or for establishing a legal situation. This includes documents produced electronically or digitally signed.
Does a Document Need to Be Stamped to Be Valid?
No, stamp tax payment is not required for a contract or document to be legally valid. However, if the document is to be submitted to public authorities or used in legal proceedings, the stamp tax must be paid in advance.
Who Pays the Stamp Tax in Turkey?
According to Article 3, the parties who sign the document are liable to pay the stamp tax.
- The responsibility can be mutually agreed in the contract.
- For public transactions, the individual (not the public authority) is responsible.
- For foreign-issued documents used in Turkey, the party submitting or benefiting from them bears the responsibility.
Stamp Tax Payment Methods
Outlined in Article 15 and Article 22 of the Stamp Tax Law:
- Payments can be made via receipt, deduction, or printed stamps.
- Taxpayers must declare monthly stamp tax totals by the 26th of the following month.
- In other cases, payment is due within 15 days of the document date.
📌 Note: Joint stock companies (A.Ş.) are required to maintain a stamp tax ledger.
Stamp Tax on Framework Agreements
Framework agreements without a monetary amount are generally not subject to stamp tax.
However, subsequent documents issued under these agreements with specified amounts are taxable.
Territorial Scope of Stamp Tax
Documents signed abroad are only taxable if they are:
- Submitted to Turkish institutions, or
- Used in commercial/legal processes within Turkey.
Documents signed at foreign consulates or embassies in Turkey also fall within the law’s scope.
How to Calculate Stamp Tax in Turkey
Stamp tax calculation is based on Articles 5, 6, 7, and 14:
- Article 5: For proportional taxes, only one copy is taxed; fixed taxes apply to each copy.
- Article 6: Unrelated agreements in a single document are taxed separately; interconnected agreements are taxed on the highest amount.
- Article 7: Multiple signatures do not increase tax, except for fixed-sum documents.
- Article 14: If the contract value increases or the duration is extended, the additional amount or time is also taxed.
Stamp Tax Audits in Turkey
Audits may be triggered by:
- Anonymous complaints,
- Sector-specific investigations,
- Risk analysis,
- Or random selection.
Authorities may initiate a stamp tax audit even without a specific trigger.
Statute of Limitations
Per Article 14 of the Tax Procedure Law (TPL):
If a tax is not assessed and notified within five years from the start of the year following the year of liability, it becomes time-barred.
Penalties for Non-Compliance
- Article 344 (TPL): Tax loss penalty equal to the unpaid tax. A 50% discount applies if declared before audit.
- Article 355 (TPL): Special irregularity penalty:
- 10% for proportional tax
- 50% for fixed tax
- Article 336 (TPL): Only the higher penalty is enforced if both apply.
- Article 371 (TPL): Allows voluntary disclosure without penalty under “regret” provisions.
Responsibility for Unpaid Stamp Tax
Per Article 24 of the Stamp Tax Law:
- The party to the transaction is primarily responsible for the tax.
- However, those submitting the document to an institution also become secondarily liable, with the right to recourse against the taxpayer.
Conclusion
Understanding and complying with Stamp Tax in Turkey is a critical part of doing business, particularly for contracts, payrolls, and commercial agreements. Proper classification, timely payment, and record-keeping are crucial for compliance. To avoid risks and penalties, it is highly advisable to seek guidance from professional tax advisors or legal experts familiar with Turkish stamp tax law.For professional guidance on stamp tax compliance in Turkey, contact us today and let our experts assist you.