#

Paying Taxes in

Turkey

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Turkey to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 1 online 46 20% taxable profit 18.16
Employer paid - Social security contributions 1 online 80 15.5% gross salaries 17.66
Employer paid - Unemployment insurance contributions 0 jointly 2% gross salaries 2.28
Property transfer fee 1 2% sale price 1.21
Property tax 1 0.1% and 0.3% (doubled in Istanbul) value of building and land (reevaluated each year) 0.88
Stamp duty on property sale 1 0.948% sale price 0.57
Tax on interest 0 withheld 10%-12%-13%-15%-18% interest income 0.38 included in other taxes
Vehicle tax 1 TRY 2,338 fixed fee 0.21
Transaction tax on checks 1 TRY 5.25 per check number of checks 0.11
Environment tax 1 varies between TRY 3,125 to TRY 25 0.02
Value added tax (VAT) 1 online 91 General rate is 18% but varies between 1%-18% value added 0.00 not included
Advertising tax 1 various rates advertising expense 0.00 small amount
Fuel tax 1 included in fuel price 0.00 small amount
Employee paid - Social security contributions 0 jointly 14% gross salaries 0.00 withheld
Employee paid - Payroll tax 0 jointly 0.66% gross salaries 0.00 withheld
Employee paid - Unemployment insurance contributions 0 jointly 1% gross salaries 0.00 withheld
Totals: 11 216.5 41.1
  • Answer
    Profit tax (% of profit) 18.2
    Labor tax and contributions (% of profit) 19.9
    Other taxes (% of profit) 3.1
    Answer Score
    Postfiling index (0-100) 3.9
    VAT refunds 0.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? No
    Restrictions on VAT refund process Restricted to international traders and others
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A 0.0
    Time to obtain a VAT refund (weeks) N/A 0.0
    Corporate income tax audits 15.6
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 47.5 15.6
    Time to complete a corporate income tax audit (weeks) 32.1 0.0
    Administrative appeal process
    First level administrative appeal authority Reconciliation committee
    Is the appeal authority independent? Different auditor
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines Online/in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.