Tax Return in Turkey

Tax Return in Turkey: A Complete Guide to Compliance - 2025

Tax return in Turkey is a critical aspect of business operations and personal financial management. Understanding the tax system, deadlines, and compliance requirements is essential for individuals and businesses to avoid penalties and ensure smooth operations. This article provides a detailed overview of tax filing in Turkey, including the types of taxes, filing procedures, deadlines, and tips for efficient compliance.

Table of Contents

• Tax Return in Turkey
• Tax Filing in Turkey: A Complete Guide to Compliance - 2025
• Overview of the Turkish Tax System
• 1- Income Tax (Gelir Vergisi)
• 2- Corporate Tax (Kurumlar Vergisi)
• 3- Value Added Tax (VAT or KDV):?
• 4- Withholding Tax: (Stopaj Vergisi)
• 5- Tourism Tax
• 6- Valuable Housing Tax (VHT or De?erli Konut Vergisi)
• 7- Capital Gains Tax
• Who Needs to File Taxes in Turkey?
• Individuals
• Businesses
• How to File Taxes in Turkey
• Penalties for Late Filing or Non-Compliance
• Tips for Efficient Tax Return in Turkey
• Contact Us For Tax Filing in Turkey
• FAQs About Tax Return in Turkey

Overview of the Turkish Tax System

1- Income Tax (Gelir Vergisi)

Levied on the income of individuals, including wages, salaries, business income, and other sources of income. Tax rates are progressive, ranging from 15% to 40% based on income levels.

2- Corporate Tax (Kurumlar Vergisi)

The standard corporate tax rate applied to the profits of companies established in Turkey or established outside Turkey but generating income through a permanent establishment or branch in Turkey and the following organizations is?25%.

• Funds
• Cooperatives
• Economic organizations belonging to associations or foundations
• Joint Ventures

3- Value Added Tax (VAT or KDV):?

VAT is a significant source of revenue for the Turkish government and is levied on the supply of goods and services. The standard VAT rate is?20%, with reduced rates of 18%, 8% and 1% applicable to specific goods and services, such as basic food items and medical products.

4- Withholding Tax: (Stopaj Vergisi)

Withholding tax in Turkey is a mechanism where the tax is deducted at the source of income by the payer, instead of being paid directly by the recipient.This system ensures that the tax authorities receive tax revenue in a timely and efficient manner.

In Turkey, WHT applies at a rate of generally 20% for various types of income, including but not limited to:

• Dividends: 10%
• Interest: 7,5%?
• Royalties: 20%?
• Rental Income: 20%
• Freelancer Services: 20%?
• Employment Income: 15% to 40%??

5- Tourism Tax

• For tourist: Tourism tax is a standard rate of?2%?of the accommodation fee and may vary based on government revisions or specific exemptions.
• For Toursim Businesses: Tourism tax is applied to tourism businesses at varying rates depending on the business’s concept, bed capacity and services offered with between 2? ‰ – 5 ‰

6- Valuable Housing Tax (VHT or De?erli Konut Vergisi)

Valuable Housing Tax, also known as “De?erli Konut Vergisi” in Turkish, is a tax levied on high-value luxury residential properties in Turkey as rates ranking from?0,3% to 1%.

7- Capital Gains Tax

Capital gains tax is levied on the profit earned from the sale of certain assets. In Turkey, these assets typically include:

1. Real Estate: Properties held for less than five years.
2. Securities: Shares, bonds, and other financial instruments.
3. Other Assets: Artwork, precious metals, and intellectual property rights.

The tax is applied to the difference between the purchase price and the sale price of the asset, adjusted for inflation where applicable.

Who Needs to File Taxes in Turkey?

Individuals

• Residents: Turkish residents are subject to taxation on their worldwide income. Residency is determined by spending more than six months in Turkey within a calendar year or establishing a place of residence in the country.
• Non-Residents: Non-residents are only taxed on their income sourced from Turkey.

Businesses

• Companies registered in Turkey, including branches of foreign entities, must file corporate taxes. Freelancers and self-employed individuals also need to report their earnings.

How to File Taxes in Turkey

The tax filing process involves several steps:

1. Registration:
2. Preparation of Documents:
3. Online Filing:
4. Payment of Taxes:
5. Confirmation:
6. Professional Guidance: Receive expert assistance from a Turkish Financial Advisor to ensure compliance, maximize tax benefits, and avoid penalties.

Penalties for Late Filing or Non-Compliance

Failure to comply with tax filing requirements can result in:

• Late filing penalties.
• Interest on unpaid taxes.
• Legal actions by tax authorities for persistent non-compliance.

Timely filing and payment are essential to avoid these consequences.

Tips for Efficient Tax Return in Turkey

To ensure smooth and efficient tax filing:

1. Stay Updated: Monitor updates to Turkish tax laws and regulations.
2. Use Technology: Leverage accounting software to maintain accurate records.
3. Seek Professional Help: Engage a Certified Accountant to handle complex filings.
4. Organize Documentation: Maintain a systematic record of all financial transactions.
5. Plan Ahead: Set reminders for filing deadlines to avoid last-minute rushes.

Turkey is continuously modernizing its tax administration system. The adoption of digital solutions, such as the E-Beyanname platform and E-Invoice (“E-Fatura”), is streamlining tax filing and compliance processes. Businesses and individuals should embrace these innovations to enhance efficiency and transparency.

Contact Us For Tax Return in Turkey

Tax filing in Turkey is a structured process that requires attention to detail and compliance with local laws.

Whether you are an individual, a business owner, or an investor, understanding the Turkish tax system and adhering to deadlines is critical for financial stability and legal compliance.

By staying informed and seeking professional assistance when needed, taxpayers can navigate the system effectively and avoid potential pitfalls.

Need help for your tax filing in Turkey? Contact us today to explore tailored solutions for your business.

A&M Consulting Co. is an business consultancy firm specialized in Tax Services for especially global investor and foreign companies & indivicual entrepreneurs.

We continue to provide cost-effective professional tax services as for global companies and individual entrepreneurs & indivicuals who want to enter the Turkey’s market smoothly, quickly, and fully comply with local legislation.

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You can reach out to our experienced consultans via email or by filling out the Contact Form on our website’s contact page

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