Business in Turkey

10.1. Individuals/income tax
Income earned by individuals in Turkey is subject to income tax. Regulating laws are Income Tax and Tax Procedures Law. Turkish resident individuals are taxed on their worldwide income. The definition of Turkish residents or assumed residents has been laid in the Income Tax Law.
According to this definition; […]

Value Added Tax (KDV) is levied on all goods and services supplied as a business activity.
Imports of goods and services are subject to tax at the customs clearing. Goods are considered movable and immovable, property and supplies are almost all business transactions. The KDV is applied on the invoice. The […]

For the taxation of foreign individuals double taxation relief is available only when there is an agreement with the country in question.
These agreements are set and determine some tax exemptions, deductions and the maximum percentages of withholding taxes.
Double taxation agreements have been made so far with many countries including USA, […]

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 […]

6.1. Corporation tax
All legal entities incorporated in Turkey are subject to both corporation tax and various withholding taxes. In principle, a branch of a foreign company is taxed in the same way as a company. Tax is levied on profit attributable to a branch.
Corporation tax is assessed on taxable profit, […]

The government encourages investment with higher incentives for underdeveloped regions. Incentives are available to both Turkish and foreign investors.
Current Tax Incentives are:
- Customs duty exemption for investment in imported machinery and equipment and associated expenses.
- Investment incentive allowance which may be granted from 40% to 200% of the amount […]