Business in Turkey

Income tax

An individual who stays more than 183 days in a calendar year is treated as resident.

Resident individuals resident in Turkey are liable to pay income tax on all their income derived from all sources in Turkey and, in theory, from abroad.

A major deduction is available for wage earners for family living expenses. It is calculated as one third of the total annual expenditure on items such as education, health, food and clothing. The amounts must be documented and the total must not exceed 35% of wages, and the relief is deductible from the tax payable the following year.

QUESTION:

Is this still applicable? Yes

The individual tax rate is progressive, starting at 15% and rising to 35 on wages. For other income, the tax rate is between 20 - 40%. A tax return is due in March and payable tax is due in two installments, in March, and July. At the same time advance tax is assessed at 20 % of quarterly net commercial and professional incomes of individuals, and is creditable against the year’s final tax.

Gift and inheritance tax

Any kind of benefit acquired by inheritance or gift is subject to tax. Different rates are used for gifts and inheritance:

- For gifts progressive from 10 % to 30%.

- For inheritance progressive from 1% to 10%