Corporate Tax
"What is the corporate tax rate in Turkey?"
Quick Answer
As of 2025, the standard corporate income tax rate is 25%. Certain sectors (e.g., banks and some financial institutions) may be taxed at 30%, and sector/incentive-based exemptions may apply. Incentives or exemptions may apply in specific regimes (e.g., free zones, technology development zones) and for qualifying investments. Corporate taxpayers generally pay provisional (temporary) corporate tax on a quarterly basis, subject to periodic legislative changes.
Turkish Tax Framework
Corporate income tax is primarily governed by the Corporate Income Tax Law No. 5520 and the Tax Procedure Law No. 213. VAT is governed by the VAT Law No. 3065, alongside other tax and incentive legislation depending on the activity and sector.
Key Points to Remember
- The standard corporate income tax rate is 25%; certain sectors (e.g., banks/financial institutions) may be taxed at 30%.
- The standard VAT rate is 20%, with reduced rates (e.g., 10% and 1%) for certain goods and services.
- Double tax treaties may reduce withholding tax rates
- Tax incentives are available for qualifying investments
Tax Planning Considerations
Effective tax planning requires understanding both domestic Turkish tax law and applicable international tax treaties. Transfer pricing rules follow OECD guidelines and require proper documentation.
Businesses should work with qualified tax advisors to optimize their tax position while ensuring full compliance with Turkish tax authorities' requirements.
Türkiye has introduced a domestic minimum corporate income tax (10%), subject to exceptions and specific rules. Companies should assess how exemptions and deductions interact with the minimum tax regime.
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