Turkey Accounting Questions Answered

What is the corporate tax rate in Turkey for 2025?

Turkey's corporate income tax rate (Kurumlar Vergisi) is 25% for the 2025 tax year. All Limited Sirket and Anonim Sirket companies pay this flat rate on taxable profit. Quarterly advance payments (Gecici Vergi) are made at the same 25% rate throughout the year and credited against the annual liability.

How does Gecici Vergi (quarterly advance tax) work in Turkey?

Gecici Vergi is Turkey's quarterly advance income and corporate tax system. Companies pay 25% of their quarterly commercial profit four times per year (Q1 in May, Q2 in August, Q3 in November, Q4 in February). These payments are credited against the final annual Kurumlar Vergisi or Gelir Vergisi liability when the annual return is filed.

What are Turkey's transfer pricing rules and thresholds?

Turkey's transfer pricing rules require that all transactions between related parties (group companies, controlled entities) be priced at arm's length under Kurumlar Vergisi Kanunu Article 13. Documentation requirements kick in for transactions exceeding TRY 30,000 per year with any single related party. The Country-by-Country Reporting (CbCR) threshold is EUR 750 million consolidated group revenue.

What business expenses are deductible for corporate tax in Turkey?

Turkey's corporate tax law allows deduction of all ordinary business expenses that are genuinely incurred for commercial purposes (ticari kazancın elde edilmesi ve idame ettirilmesi için). Salaries, rent, depreciation, professional fees, marketing, and bank interest are all deductible. Non-deductible items (Kanunen Kabul Edilmeyen Giderler — KKEG) include fines and penalties, entertainment above 0.5% of net sales, disallowed interest under the FGK rule, and thinly capitalised related-party interest.

How and when do I file the annual corporate tax return in Turkey?

Turkey's annual Kurumlar Vergisi Beyannamesi (corporate tax return) is due by 30 April of the year following the tax year — so 30 April 2026 for the 2025 tax year. It is filed electronically via the GIB e-Beyanname portal and must be countersigned by a licensed SMMM or YMM accountant. The balance of tax due (after crediting quarterly Gecici Vergi payments) must be paid on the same date.

When does a business need to register for KDV (VAT) in Turkey?

In Turkey, KDV (Katma Deger Vergisi) registration is mandatory for virtually all businesses from the date they commence commercial or professional activity. Unlike the UK or EU, Turkey does not have a simple annual turnover registration threshold for most business types — registration is a requirement of commencing taxable activity, not a consequence of exceeding a revenue level.

What is the difference between a Limited Sirketi and Anonim Sirketi in Turkey?

Both Limited Sirketi (Ltd. Sti.) and Anonim Sirketi (A.S.) are corporate structures providing limited liability and paying 25% Kurumlar Vergisi. The key differences are: minimum capital (TRY 50,000 vs TRY 250,000), shareholder limit (50 vs unlimited), share transferability, governance complexity, and audit requirements. Most SMEs use Ltd. Sti.; A.S. is for regulated sectors, stock exchange candidates, or businesses needing more than 50 shareholders.

How much do employers pay in SGK social security contributions in Turkey?

Turkish employers pay SGK social security contributions of 22.5% of gross wages plus 2% unemployment insurance, totalling 24.5%. Employees contribute 15% plus 1% unemployment (16% total). On a TRY 30,000 gross salary, total employer cost is TRY 37,350/month. All contributions are capped at 7.5× the minimum wage (approximately TRY 165,780/month for 2025).

When is e-Fatura (e-invoice) mandatory in Turkey and how does it work?

E-Fatura is mandatory for Turkish businesses with annual gross turnover above TRY 3,000,000. It is also mandatory for all importers, exporters, e-commerce operators, banks, and regulated financial entities regardless of turnover. Once mandatory, all B2B invoices to e-Fatura registered counterparties must be issued through the GIB system or a licensed e-transformation provider. Paper invoices are legally invalid and carry a 10% penalty.

What are the withholding tax rates in Turkey for dividends, royalties, and services?

Turkey's Stopaj Vergisi (withholding tax) rates for 2025: dividends to Turkish individual shareholders 15%, professional service fees to individuals 20%, rental payments to individual landlords 20%, non-resident royalties and technical services 20% (reduced by tax treaty, typically to 10%), non-resident dividends 15% (reduced by treaty).