TAX TYPES IN TURKEY

TAX TYPES IN TURKEY

Corporate Income Tax

The corporate income tax rate for 2022 is 23%. The rate will be reduced to 20% for 2023.

The following entities are subject to taxes on income levied under the Corporate Income Tax Code, No. 5520.

Taxpayers whose legal or business seats are located in Turkey, are subject to corporate income tax on their worldwide income. In cases where both of the legal and business seats are not located in Turkey.

Withholding Tax

According to the main topic, the withholding rates are as follows;

·?0-15% in dividend payments.

·?20% of the gross rent price in the rent payments made to real persons.

·?20% in the payments made to the self-employed (CPA, Attorney, MDs, and etc.).

·?Wages & salaries (progressive rates are applied for employees' income taxes) from 15% to 40.

Value Added Tax

According to Turkish Taxation System, deliveries of goods and services are subject to VAT. The rates varying from 1% to 18%.

Special Consumption Tax

There are four main product groups subjected to SCT at different tax rates and depending on on the tariff numbers;

·?Petroleum products, natural gas, lubricating oil, solvents, and derivatives of solvents.

·?Automobiles and other vehicles, motorcycles, planes, helicopters, yachts.

·?Tobacco and tobacco products, alcoholic beverages.

·?Luxury products.

Special Communication Tax

Telecommunication services are subjected to a special communication tax. This tax is not included in the VAT base. Special communication tax rates are as follows:

·?On mobile electronic communication services (including sales for pre-paid lines): 10%

·?The services regarding the transmission of radio and television broadcasts on satellite platforms and cable medium: 10%

·?The wired, wireless, and mobile provision of internet services: 10%

·?Electronic communication services not listed above: 10%

Banking and Insurance Transactions Tax

BITT at a rate of 10% in general (some transactions are subject to 1% or 0% BITT).

Stamp Tax

Stamp duty is levied according to the type of documents at diferent tax rates (between 0.189%- 0.948%).

Resource Utilization Support Fund (RUSF)

On import: regarding to the payment option; the transactions with credit acceptance, deferred letter of credit and cash against goods. There will be 6% RUSF applicable. But the transactions executed without prepayment, RUSF shall not be applicable. 0%.

On the bank and financial institutions; If the loans or borrowings obtained from an abroad institution the RUSF rates shall be applicable as below;

·?If the loans due date is less than 1 year, RUSF rate is 3%

·?If the loan’s due date is between 1-2 years, RUSF rate is 1%

·?If the loan’s due date is between 2-3 years, RUSF rate is %0,5

·?If the loan’s due date is more than 3 years, there will be no applicable RUSF 0%.

GEKAP (Recycling Contribution)

This is the declaration regarding the payment of the recycling contribution fee, which must be paid for the products supplied to the market by the importers for plastic bags, sales points for other products, in the method determined by the Revenue Administration.

It was enacted within the scope of prevention of environmental pollution and protection of the environment.

Products: Plastic bags, tires, accumulator, zinc-carbon batteries and other battery types.

Property Tax

This is type of tax paid to government for properties such as flat, building and land.

Tax rates are 0.2% for houses, 0.4% for offices, 0.6% for land within the metropolitan borders.

0.1% for houses, 0.2% for offices, 0.3% for land outside metropolitan borders.

Customs Tax

The VAT rates are 1%, 8%, and 18%, varying according to the type of goods imported.