# What is Muhasebe?

Country: Turkey

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.

## Current rate (2025)

N/A (accounting system). Licensed accountant fees vary: TRY 3,000-8,000/month for a small Limited Sirketi, rising to TRY 15,000+/month for audit-required companies.

## Example

An Istanbul e-commerce Anonim Sirketi maintains its accounts using the Tek Duzen Hesap Plani, records all transactions on an accrual basis, and engages a licensed SMMM (Serbest Muhasebeci Mali Musavir) to review monthly VAT returns, file quarterly Gecici Vergi, and sign the annual Kurumlar Vergisi declaration.

## How Muhasebe works in Turkey

Muhasebe (accounting) in Turkey operates within a strict statutory framework that combines tax-aligned chart-of-accounts requirements with professional licensing rules. Understanding this framework is essential for any business operating in Turkey.\n\n**Tek Duzen Hesap Plani (Uniform Chart of Accounts)**\nAll commercial enterprises are required to use the Tek Duzen Hesap Plani (TDHP), the national chart of accounts prescribed by the Accounting System Implementation General Communique No. 1 issued in 1992 and updated subsequently. The TDHP is a five-tier hierarchical system:\n- 0: Capital and fixed assets\n- 1: Current assets\n- 2: Non-current assets\n- 3: Short-term liabilities\n- 4: Long-term liabilities\n- 5: Equity\n- 6: Revenue\n- 7: Cost of goods sold\n- 8: Other income/expenses\n\nCompanies subject to Bagimsiz Denetim use TMS/TFRS (Turkish Accounting Standards, equivalent to IFRS) instead of TDHP, but the chart of accounts structure remains largely compatible.\n\n**Accrual basis requirement**\nAll accounts must be maintained on an accrual basis (tahakkuk esasi). Cash-basis accounting is not permitted for registered commercial businesses. Revenue is recognised when earned, and expenses when incurred, regardless of cash movement.\n\n**Record retention**\nBusiness records, accounting books (defter-i kebir, yevmiye defteri), and supporting documentation must be retained for 5 years under VUK. For companies subject to customs declarations or social security records, longer retention may apply. E-Fatura and e-Arsiv records are retained in the GIB system and can be retrieved from there.\n\n**Licensed accountants (SMMM and YMM)**\nTurkey has a two-tier professional accounting licensing system:\n- SMMM (Serbest Muhasebeci Mali Musavir): Certified Public Accountant, authorised to handle accounting, tax returns, and advisory for businesses below certain thresholds\n- YMM (Yeminli Mali Musavir): Sworn Financial Adviser, higher-level qualification authorised to certify certain tax refund claims and provide attestation services; cannot also act as bookkeeper for the same client\n\nMost annual tax returns (Kurumlar Vergisi, Gelir Vergisi) must be signed by a licensed SMMM or YMM. This means even a sole-director Limited Sirketi must engage an external accountant.\n\n**Electronic accounting records**\nTurkey has progressively mandated electronic records. E-Defter (electronic accounting books, the general ledger and journal in electronic format) is mandatory for companies subject to e-Fatura. All electronic records are timestamped and logged with the Revenue Administration, providing the tax authority with near-real-time visibility of accounting data.

Source: https://www.gib.gov.tr/muhasebe-standartlari

## Related terms

- [Kurumlar Vergisi](https://accounts-os.com/tr/glossary/kurumlar-vergisi-tr)
- [KDV (Katma Deger Vergisi)](https://accounts-os.com/tr/glossary/kdv-tr)
- [Bagimsiz Denetim](https://accounts-os.com/tr/glossary/bagimsiz-denetim-tr)
- [Limited Sirketi](https://accounts-os.com/tr/glossary/limited-sirketi-tr)