Turkey Accounting & Tax Glossary

Amortisman is the Turkish term for depreciation — the systematic allocation of the cost of a tangible fixed asset over its useful economic life. Turkey uses a statutory depreciation system where the Revenue Administration publishes a General Communique setting standard useful lives and maximum annual depreciation rates for categories of assets. The straight-line method is the default; the declining-balance method is permitted for movable assets.

Muhasebe is the Turkish word for accounting. Under Turkish law, all commercial enterprises must maintain accounting records conforming to the Tek Duzen Hesap Plani (Uniform Chart of Accounts) prescribed by the Ministry of Finance. Accounting records must be prepared on an accrual basis, kept for 5 years, and be accessible to tax inspectors on demand. Licensed accountants (SMMM or YMM) must sign most business tax declarations.

Anonim Sirketi (A.S.) is Turkey's joint stock company structure, required for certain regulated industries, companies seeking stock exchange listing, and businesses needing more than 50 shareholders. It requires a minimum share capital of TRY 250,000, a board of directors (Yonetim Kurulu), and mandatory independent audit if meeting size thresholds.

Limited Sirketi (Ltd. Sti.) is Turkey's private limited liability company structure and the most common entity type for small and medium businesses. It requires a minimum share capital of TRY 50,000, between 1 and 50 shareholders, and must be registered with the Trade Registry. Shareholders' liability is limited to their capital contribution.

Bagimsiz Denetim is Turkey's mandatory independent statutory audit requirement for companies meeting size thresholds. Companies required to undergo Bagimsiz Denetim must have their annual financial statements audited by a licensed audit firm (KGK-accredited) and the auditor's report must be included in the annual report. This is a prerequisite for filing certain tax returns and disclosures.

Vergi Levhasi is Turkey's mandatory tax identification placard that all businesses subject to income or corporate tax must obtain from the Revenue Administration and display visibly at their registered business premises. It shows the taxpayer name, Tax Identification Number (Vergi Kimlik Numarasi), tax office, and business address. Failure to display it is a misdemeanour punishable by a fixed fine.

Gecici Vergi is Turkey's quarterly advance corporate and personal income tax payment system. Commercial businesses and self-employed professionals calculate and pay tax on their quarterly commercial profit at the applicable tax rate (25% for companies, progressive rate for individuals) four times per year. These payments are credited against the final annual income tax or corporate tax liability.

Gelir Vergisi is Turkey's personal income tax applying to individuals on seven categories of income: employment, business, agricultural, self-employment, immovable property, movable capital, and other income. For 2025, rates range from 15% (up to TRY 158,000) to 40% (above TRY 880,000), with an additional 45% bracket applicable to employment income above TRY 4,300,000.

KDV (Katma Deger Vergisi) is Turkey's value-added tax. The standard rate is 20% as of 2023, with a reduced rate of 10% for many food items, medical goods, and certain professional services, and a 1% rate for basic foodstuffs and agricultural products. All businesses above the KDV registration threshold must charge, collect, and remit KDV monthly via e-Beyanname.

Kurumlar Vergisi is Turkey's corporate income tax levied on the profits of capital companies, cooperatives, state-owned enterprises, and business associations. The standard rate is 25% for 2025, having been raised from 20% in 2021 as part of fiscal consolidation measures. Certain manufacturing and export companies may qualify for reduced rates under investment incentive certificates.

Stopaj Vergisi (withholding tax) is a mechanism under which the payer deducts income tax at source before making payments to the recipient. In Turkey, employers withhold Gelir Vergisi from salaries, companies withhold tax on dividends (15%), professional fees (20%), rental payments (20%), and certain other payments. The payer remits the withheld amount to the tax authority via the Muhtasar Beyanname.

SGK (Sosyal Guvenlik Kurumu) is Turkey's Social Security Institution responsible for collecting social insurance premiums from employers and employees covering health insurance, pension, and unemployment. Total employer social security contributions are approximately 22.5% of gross wages, with employees contributing 15%. Employers also pay 2% for unemployment insurance.