Understanding the different tax types in Turkey is essential for individuals and businesses operating in the country. Turkey’s tax system includes a wide range of direct and indirect taxes, each with specific rates and application criteria. This guide provides a comprehensive overview of the main tax types applicable in 2024.
Corporate Income Tax
The corporate income tax rate for 2024 is 25%. Taxpayers whose legal or business seats are located in Turkey are subject to corporate income tax on their worldwide income.
Withholding Tax
Updated withholding rates for various income types:
- Dividend payments: 10-15%
- Rent payments made to individuals: 20% of the gross rent amount
- Payments made to self-employed individuals (e.g., CPA, attorneys, doctors): 20%
- Wages and salaries: Progressive rates from 15% to 40%
Withholding tax is one of the most widely applied tax types in Turkey, especially for non-resident income and independent services.
Value Added Tax (VAT)
Goods and services are subject to VAT at rates of 1%, 8%, and 20% based on their category. As a key part of tax types in Turkey, VAT is imposed on nearly all commercial transactions.
Special Communication Tax
SCT applies to four main product groups with varying rates:
- Petroleum products, natural gas, lubricants, solvents, and derivatives.
- Automobiles, motorcycles, aircraft, helicopters, and yachts.
- Tobacco products and alcoholic beverages.
- Luxury goods.
These consumption-based levies are among the most sector-specific tax types in Turkey.
Special Communication Tax
Tax rates for telecommunication services:
- Mobile electronic communication services: 10%
- Internet services: 10%
- Satellite platforms and cable broadcasts: 10%
Banking and Insurance Transactions Tax (BITT)
Stamp Tax
Stamp tax is levied on documents at rates ranging from 0.198% to 0.948%, depending on the document type.
Resource Utilization Support Fund (RUSF)
For imports:
- Transactions with deferred payment (e.g., credit acceptance or deferred letters of credit): 6%
- Transactions without prepayment: 0%
For loans from foreign financial institutions:
- Loan term less than 1 year: 3%
- Loan term between 1-2 years: 1%
- Loan term between 2-3 years: 0.5%
- Loan term more than 3 years: 0%
Recycling Contribution Fee (GEKAP)
This environmental fee applies to products that may pollute the environment, such as:
- Plastic bags, tires, accumulators, batteries, and other designated goods
Property Tax
- Residential properties within metropolitan areas: 0.2%
- Commercial properties within metropolitan areas: 0.4%
- Residential properties outside metropolitan areas: 0.1%
- Commercial properties outside metropolitan areas: 0.2%
Customs Tax
VAT rates for imported goods vary:
- 1%, 8%, and 20% depending on the type of goods.
Customs duties and import VAT are crucial tax types in Turkey for businesses engaged in international trade.
Conclusion: Understanding Key Tax Types in Turkey
These updated 2024 figures highlight the complexity and scope of tax types in Turkey, which include corporate taxes, consumption taxes, environmental fees, and withholding obligations. Staying informed is essential for maintaining compliance and ensuring effective tax planning.
Contact us if you need assistance navigating the Turkish tax system or managing your obligations.
