What is Gelir Vergisi?
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.
Current Rate (2025)
15% (TRY 0-158,000), 20% (TRY 158,001-330,000), 27% (TRY 330,001-800,000), 35% (TRY 800,001-4,300,000), 40% (TRY 4,300,001+). Employment income above TRY 4,300,000 taxed at 45%.
Example
A self-employed consultant earning TRY 500,000 net business income in 2025 pays: 15% on TRY 158,000 = TRY 23,700; 20% on TRY 172,000 = TRY 34,400; 27% on TRY 170,000 = TRY 45,900. Total Gelir Vergisi = TRY 104,000 (effective rate ~20.8%).
How Gelir Vergisi works in Turkey
Gelir Vergisi (GV) is Turkey's personal income tax, governed by Income Tax Law No. 193. It applies to resident individuals on worldwide income and non-residents on Turkish-source income. Turkey taxes seven distinct categories of income under separate rules before combining them into a final declaration.\n\n**Seven categories of income**\n1. Ticari Kazanc (Business income): net profit from commercial activities\n2. Zirai Kazanc (Agricultural income): income from farming and animal husbandry\n3. Serbest Meslek Kazanci (Professional/self-employment income): income from independent professional activities (lawyers, doctors, architects, consultants)\n4. Ucret (Employment/salary income): wages including benefits-in-kind, share options, bonuses\n5. Gayrimenkul Sermaye Iradı (Rental income): income from renting immovable property\n6. Menkul Sermaye Iradı (Capital income): dividends, interest, bond income\n7. Diger Kazanc ve Iratlar (Other income): capital gains, occasional income\n\n**Progressive brackets (2025)**\nThe brackets are adjusted annually for inflation via a revaluation coefficient (yeniden degerleme oranı) published by the Revenue Administration. The 2025 brackets are substantially higher than 2024 due to Turkey's high inflation environment:\n- 15%: TRY 0 to 158,000\n- 20%: TRY 158,001 to 330,000\n- 27%: TRY 330,001 to 800,000\n- 35%: TRY 800,001 to 4,300,000\n- 40%: above TRY 4,300,000\nEmployment income only: a 45% rate applies to wage income above TRY 4,300,000.\n\n**Annual declaration requirement**\nNot all taxpayers must file an annual Gelir Vergisi Beyannamesi. Employees whose entire income is wage income subject to withholding from a single employer are generally not required to file annually — the employer's withholding is final. However, taxpayers with business income, professional income, rental income above TRY 33,000 (2025 threshold), or multiple employment sources must file an annual declaration by 31 March of the following year.\n\n**Advance quarterly payments (Gecici Vergi)**\nSole traders and self-employed professionals pay quarterly advance Gecici Vergi at 25% of quarterly commercial/professional profit (same rate as corporate Gecici Vergi). These are credited against the final annual Gelir Vergisi liability.\n\n**Deductions and exemptions**\nKey deductions from taxable income include: mandatory SGK premiums paid by the self-employed, private pension (BES) contributions up to 15% of net income, private health insurance premiums for the taxpayer and family (up to TRY 28,900 for 2025), educational and childcare expenses, and charitable donations to certain public institutions. An annual minimum living allowance (Asgari Gecim Indirimi) previously existed but was restructured into payroll tax credits from 2022.
Related terms
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.
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.
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.
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