Corporate taxes in Turkey depend on the company type and on the transaction. Turkish limited companies and joint-stock companies are corporate income tax payers; the owner of what everyday language calls a “personal company” is an income tax payer (a sole proprietorship). This article is based on official sources as of 30 August 2026; it is not personal tax advice.
VAT (KDV), withholding tax and stamp tax can depend on the company type, the transaction, the buyer, the seller and the nature of the document. Provisional tax is not a separate final tax; it is an advance payment of annual income or corporate income tax during the year. The phrase “five basic taxes everyone pays” is technically misleading.
2026 company taxes — short summary
- General corporate income tax for limited / joint-stock companies
- 25% (30% may apply to banks, listed financial institutions and related YİD/KÖİ project companies; that is not the general company rate).
- General VAT rates
- 1%, 10% and 20%; the rate is set by the goods or services class on the annexed lists.
- Dividend withholding
- On dividends distributed by fully liable companies to natural-person shareholders, the general rate has been 15% since 22 December 2024.
- Provisional tax
- An advance payment during the year of final corporate or income tax; it is credited at year-end.
- Sole proprietorship
- Pays income tax, not corporate income tax. VAT, withholding and stamp tax may also arise by transaction.
Which company pays which tax?
What taxes does a Turkish limited company pay?
A Turkish limited company is a corporate income tax payer. The general rate is 25%. VAT may arise on sales, withholding on payroll and other payments, stamp tax on certain papers, and provisional tax during the year. Dividend withholding also arises on profit distribution.
What taxes does a Turkish joint-stock company pay?
A joint-stock company is also a corporate income tax payer. The general rate is the same as for a limited company (25%). If the company is a bank or a listed financial institution, 30% may apply. VAT, withholding, stamp tax and provisional tax depend on the transaction and the document, as they do for a limited company.
What taxes does a sole proprietorship pay in Turkey?
The owner of a sole proprietorship pays income tax as a natural person; corporate income tax does not arise. VAT, withholding and stamp tax are assessed separately according to the activity and the documents.
1. Corporate income tax
Turkish limited companies and joint-stock companies are corporate income tax payers. In 2026 the general corporate income tax rate is 25% (Corporate Tax Law (KVK) Art. 32; Revenue Administration (GİB) Corporate Tax Rate Guide). The 30% rate that may apply to banks, listed financial institutions and related YİD/KÖİ (build-operate-transfer / public-private partnership, BOT/PPP) project companies must not be presented as the general company rate.
How is the tax base determined?
Non-deductible expenses (KKEG) are added to commercial balance-sheet profit; exemptions and deductions permitted by law are subtracted. The remainder is the corporate income tax base. Export and production reductions are not applied automatically to all of the company’s profits.
- Commercial balance-sheet profit (or loss) is taken from the year-end financial statements.
- KKEG is added to the base; undocumented or legally non-deductible spending belongs here.
- Statutory exemptions and deductions are subtracted if their conditions are met. The real-estate disposal exemption depends on the transition date, acquisition date, holding period and activity conditions; this article does not assume an automatic exemption.
- Corporate income tax is generally calculated at 25% on the remaining base. A 5-point reduction may apply to export earnings, and a 1-point reduction may apply only to production earnings of an institution that holds an industrial registry certificate and actually produces; the reductions do not spread to other earnings.
Worked example:
A simplified example aligned with GİB 2026 Domestic Minimum Corporate Tax Guide Example 1: joint-stock company (A) has commercial balance-sheet profit of 2,000,000 TL and KKEG of 400,000 TL in the 2025 accounting period. There is no exemption or deduction in this example.
• Commercial balance-sheet profit: 2,000,000 TL
• KKEG: +400,000 TL
• Exemption and deduction: none
• Corporate income tax base: 2,400,000 TL
• Corporate income tax: 2,400,000 × 25% = 600,000 TL (minimum 10% = 240,000 TL; amount payable 600,000 TL).
Domestic minimum corporate income tax
Under KVK Art. 32/C, corporate income tax calculated under the ordinary rules cannot be less than 10% of corporate earnings before exemptions and deductions. That earnings figure is commercial balance-sheet profit or loss plus KKEG. Not every exemption or deduction is treated the same way; the law lists items that may and may not be subtracted from the minimum base.
Starting point of the calculation
- Take commercial balance-sheet profit or loss.
- Add non-deductible expenses (KKEG).
- If profit + KKEG or loss + KKEG is greater than zero, minimum tax can arise; if the total is zero or negative, not every loss-making company automatically pays tax.
- Compare ordinary corporate income tax with minimum corporate income tax; the higher amount applies.
The minimum amount is 10% of corporate earnings before exemptions and deductions. A model that adds staff, rent, depreciation and service costs and treats 50% of that total as the tax base is not used. For companies starting activity for the first time, it does not apply for three accounting periods from the period in which activity begins. Companies formed by merger, transfer, conversion, or a full or partial demerger are not automatically treated as first-time starters. It is also calculated in provisional tax periods.
Worked example:
GİB Guide Example 2: joint-stock company (B) has a commercial balance-sheet loss of 2,000,000 TL and KKEG of 2,400,000 TL. There is no exemption or deduction.
• Commercial balance-sheet loss: 2,000,000 TL
• KKEG: 2,400,000 TL
• Earnings before deduction/exemption: 400,000 TL
• Ordinary corporate income tax: 400,000 × 25% = 100,000 TL
• Minimum corporate income tax: 400,000 × 10% = 40,000 TL
• Payable: 100,000 TL (ordinary tax is higher than the minimum).
If loss + KKEG ≤ 0, minimum tax may not arise. It does not follow that every loss-making company must pay tax.
Example where the minimum tax applies
A numerical comparison aligned with GİB Guide Example 3: commercial balance-sheet profit is 100,000,000 TL and exempt earnings are 70,000,000 TL. The only purpose is to compare ordinary tax with minimum tax; the type of exemption and its conditions in the guide are not generalised here.
• Commercial balance-sheet profit: 100,000,000 TL
• Exempt earnings: 70,000,000 TL
• Ordinary corporate income tax base: 30,000,000 TL
• Ordinary corporate income tax: 30,000,000 × 25% = 7,500,000 TL
• Minimum corporate income tax: 100,000,000 × 10% = 10,000,000 TL
• Corporate income tax payable: 10,000,000 TL (minimum tax is higher than ordinary tax).
This example shows a case where the minimum tax actually applies. It does not mean the exemption works the same way for every company.
📅 When is it filed?
If the accounting period is the calendar year, the corporate income tax return is filed by the end of the fourth month of the following year (April). A weekend, public holiday or GİB extension can move the date.
What are the 2026 company tax rates in Turkey?
The general corporate income tax rate for limited and joint-stock companies is 25%; it may be 30% for certain financial institutions. General VAT rates are 1% / 10% / 20%. General withholding on dividends from a fully liable company to a natural-person shareholder is 15%. The 2026 wage income-tax tariff is 15%–40%. Stamp tax is 9.48 per mille on general contracts and 1.89 per mille on lease contracts.
2. VAT (KDV): tax calculated on each transaction
VAT is a transaction tax added to the price of supplies and services, recovered on purchases, and paid to the Treasury on the difference. An exemption is not the same as a reduced rate.
VAT-1 (KDV-1): the standard VAT return
How does it work?
Deductible VAT is subtracted from output VAT. Deductible VAT is not automatic on every purchase VAT; deduction bans, the nature of the document and a link to the activity may apply.
Worked example:
• This month you made 100,000 TL + VAT of sales
• VAT collected on sales: 100,000 × 20% = 20,000 TL
• VAT paid on raw-material and supplies purchases: 12,000 TL
• VAT payable: 20,000 − 12,000 = 8,000 TL
If the VAT you paid had been higher, the difference would have been carried forward to the next month.
VAT rates (2026):
- General rate 20%: taxable transactions that are not on the annexed lists (GİB VAT rates).
- 1% and 10%: set by the goods or services class on annexed lists (I) and (II). Saying “basic food and books are 1% or 10%” is not a sufficient generalisation.
- A VAT exemption is not a rate reduction; exemption, reduced rate and withholding are separate rules.
VAT-2 (KDV-2): VAT you withhold for others
In some cases the buyer withholds part of the seller’s VAT and files it as the person responsible. This is called VAT withholding. The rate depends on the transaction type, the buyer’s status and the communiqué conditions.
When does it apply?
- Scrap and similar goods supplies do not have a single fixed rate; full withholding or different rules may apply depending on the type of supply, exemption and taxpayer status (this tool focuses on partial service withholding).
- On engineering/architecture services performed together with construction works, the partial withholding share is generally 4/10; buyer coverage and contract-threshold conditions are also required.
- 9/10 may apply to cleaning, environment and garden-maintenance services supplied to a VAT taxpayer or a designated buyer; 7/10 may apply to machinery/vehicle repair and maintenance supplied to a designated buyer.
- On survey, planning-design, consulting, audit and similar services, 9/10 generally applies to designated buyers; it does not automatically extend to every VAT taxpayer.
- A rate should not be chosen without assessing transaction type, buyer status, withholding scope and the current transaction amount / invoicing threshold together. A yearly billing-volume cutoff is not a substitute for the official rule.
Worked example:
You received a 10,000 TL + VAT cleaning service (buyer is a VAT taxpayer; partial withholding conditions are met).
• Invoice amount (base): 10,000 TL
• VAT (20%): 2,000 TL
• Invoice total: 12,000 TL
• Withholding share 9/10: withheld VAT 1,800 TL
• Payable to the cleaning company: 10,000 + 200 = 10,200 TL
• The withheld 1,800 TL is declared as the person responsible on VAT-2 (KDV-2)
📅 Filing deadlines (GİB): VAT-1 (KDV-1) is generally filed by the 28th of the month following the tax period; VAT-2 (KDV-2) filed as the person responsible is due by the 25th of the following month. A weekend, public holiday or administrative extension can move the date.
To test rate and threshold scenarios step by step, use the VAT withholding calculator page.
3. Income-tax withholding: tax on your employees and collaborators
Your company must withhold tax from the payments it makes. There are two main categories:
A) Wage withholding
On wage payments the employer withholds employee SGK and unemployment premiums plus income tax and stamp tax from the payroll. The minimum living allowance (AGİ) has been abolished since 2022; it is not used as a calculation step.
How is it calculated?
- The employee SGK premium is generally 14% and the employee unemployment premium 1%, deducted from gross pay.
- The income-tax base is found; the 2026 wage tariff of 15%–40% is applied according to the cumulative base.
- The minimum-wage income-tax exemption and the stamp-tax exemption corresponding to the minimum wage are subtracted.
- Other statutory deductions and exemptions are applied if they apply; the remainder is net pay.
- The minimum living allowance (AGİ) is not a payroll step.
Income-tax bands:
2026 wage tariff (GİB): 15% up to 190,000 TL; 20% up to 400,000 TL; on wages 27% up to 1,500,000 TL; 35% up to 5,300,000 TL; 40% on the excess. Bands are applied to the cumulative base.
Worked example:
January 2026, standard status, no incentive, 75,000.00 TL gross wage (same as the project payroll engine and lock tests):
• Gross: 75,000.00 TL
• Employee SGK (14%): 10,500.00 TL
• Employee unemployment (1%): 750.00 TL
• Income tax: 5,351.18 TL
• Stamp tax: 318.55 TL
• Net: 58,080.27 TL
For monthly and cumulative payroll, you can use the salary / payroll calculator.
Minimum-wage tax exemption (after 2022)
Since 2022 the minimum living allowance (AGİ) has been abolished. A simpler system replaced it: earnings up to the minimum-wage amount are fully exempt from income tax and stamp tax. The exemption is the same for everyone, regardless of marital status or number of children.
B) Other withholding
Withholding other than wages depends on the transaction and the status of the recipient under Income Tax Law Art. 94.
- Payments to a self-employed natural person on a freelance receipt are generally subject to 20% withholding.
- If a lawyer, accountant or consultant invoices through a capital company, the same 20% withholding is not applied automatically.
- Workplace rent paid to a natural person is generally 20%; the lessor’s status and the nature of the transaction are assessed separately.
- Copyright, patent and intangible rights have different rules by owner and transaction; a single unexplained 17–20% band is not given (Income Tax Law 94/2-a: 17% for copyright, 20% for other self-employment).
- On dividends distributed by fully liable companies to natural-person shareholders, the general withholding rate has been 15% since 22 December 2024. Adding profit to capital is not a distribution.
- For non-resident and foreign shareholders, a double-tax treaty rate may change the result.
Freelance receipt example
A freelance receipt issued to a self-employed natural person (not a company invoice):
• Gross professional fee: 10,000 TL
• VAT 20%: 2,000 TL
• Withholding 20%: 2,000 TL
• Net payable to the professional: 10,000 TL (10,000 − 2,000 withholding + 2,000 VAT).
For the receipt breakdown, see the freelance receipt calculator.
What taxes arise on profit distribution in Turkey?
The company first calculates corporate income tax. On a distribution of the remainder to a fully liable natural-person shareholder, 15% dividend withholding is generally deducted (since 22 December 2024). Adding profit to capital is not a distribution. For a non-resident, the treaty rate may differ.
📅 The Withholding and Premium Service Return (MPHB) is as a rule filed by the 26th of the following month. Taxpayers who meet the conditions may file quarterly. “All withholding on the 26th of every month” is not an absolute rule. A holiday or GİB extension can move the date.
4. Stamp tax: tax on documents
Stamp tax is applied as a proportional or lump-sum duty according to the nature of the paper in Table (1) annexed to Law No. 488. Employment contracts, suretyship, leases, undertakings, cheques and promissory notes are not under a single rate or a single regime.
Which documents are subject to stamp tax?
- On contracts, undertakings and assignments that state a definite sum, the general rate is 9.48 per mille.
- On lease contracts, the general rate on the rent for the term is 1.89 per mille.
- Suretyship, guarantee and pledge instruments have a separate line in the table; the lease rate is not applied to them.
- Cheques, notes and commercial papers follow their own lines and exemptions.
- Tax returns in 2026 are subject to lump-sum stamp tax; they are not exempt.
- Notary fees, certification fees, trade-registry fees and stamp tax are separate liabilities.
2026 stamp-tax amounts on returns (GİB)
- Annual income-tax return: 1,189.50 TL
- Corporate income tax return: 1,605.80 TL
- VAT return: 791.00 TL; withholding return: 791.00 TL; other tax returns: 791.00 TL
- Combined Withholding and Premium Service Return (MPHB): 939.70 TL
How is it calculated?
Proportional stamp tax:
On a general contract, undertaking or assignment that states a definite sum, the rate is 9.48 per mille (0.00948). That rate is not applied to a lease; leases use 1.89 per mille (0.00189). 0.948% is mathematically the same as 9.48 per mille, but it must not be applied to a lease contract.
Worked example — lease contract:
You signed a contract for 120,000 TL annual rent:
• Stamp tax: 120,000 × 0.00189 = 226.80 TL
A contractual split between the parties is separate from joint/legal liability toward the tax authority; it is not said that “the tenant and the landlord usually pay half each”.
Worked example — service contract:
A 500,000 TL consulting contract:
• Stamp tax: 500,000 × 0.00948 = 4,740 TL
Lump-sum stamp tax:
Some papers carry a lump-sum (fixed) stamp tax. Certification of commercial books and trade-registry filings are not automatically “lump-sum stamp tax”; notary, certification and registration fees are separate.
- Tax returns: the 2026 lump-sum amounts above.
- When a balance sheet and income statement are submitted to an official office or a bank, the table has separate lump-sum lines; that is not a return exemption.
- Each paper’s exemption is checked separately under Table (1) and special laws.
📅 When is it paid? It can be paid when the contract is drawn up, or with a monthly combined return.
5. Provisional tax: corporate tax paid in advance during the year
Provisional tax is an advance tax credited against final corporate (or income) tax. It is not a separate final tax. For corporate income tax payers the 2026 general rate is 25%; institutions subject to a different statutory rate may have a special rate.
How is it calculated?
Period accounts are cumulative: the second period is calculated on January–June profit, and provisional tax paid in the previous period is credited. From 2025 the fourth provisional-tax period applies again.
Worked example:
Period 1 (January–March):
• Profit: 100,000 TL
• Provisional tax: 25,000 TL
• File and pay by **17 May** (a weekend, holiday or GİB extension can move the date)
Period 2 (January–June total):
• Profit: 250,000 TL
• Total provisional tax: 62,500 TL
• Previously paid: 25,000 TL
• Payable this period: 37,500 TL
• File and pay by **17 August** (a weekend, holiday or GİB extension can move the date)
Periods and dates
| Period | Months | Filing date |
|---|---|---|
| 1. Period | January–March | 17 May |
| 2. Period | April–June | 17 August |
| 3. Period | July–September | 17 November |
| 4. Period | October–December | 17 February of the following year |
What happens at year-end?
When you file your annual corporate income tax return:
• Corporate income tax calculated: 500,000 TL
• Provisional tax paid during the year: 450,000 TL
• Payable: 50,000 TL
If provisional tax was overpaid, you may claim a refund or set it off against other taxes.
Tax calendar: what is paid when?
Monthly filing deadlines:
- ✓ Withholding and Premium Service Return (MPHB): as a rule the 26th of the following month; quarterly filing is also possible for taxpayers who meet the conditions.
- ✓ KDV-1 (VAT-1): the 28th of the following month
- ✓ KDV-2 (VAT-2 as the person responsible): the 25th of the following month
Every 3 months:
- ✓ Provisional tax (by the 17th — 17 May, 17 August, 17 November and 17 February of the following year)
- ✓ Quarterly KDV-1 return: by the 28th of the following month
Once a year:
- ✓ Corporate income tax return (by the end of the 4th month after the accounting period)
When are company taxes filed in Turkey?
VAT-1 (KDV-1) is due on the 28th of the following month, VAT-2 (KDV-2) on the 25th, MPHB as a rule on the 26th (quarterly filing is conditional), provisional tax on 17 May / 17 August / 17 November / 17 February of the following year, and corporate income tax at the end of April of the following year. Deadlines can be affected by a weekend, public holiday or GİB extension.
Does a loss-making company pay corporate tax?
A loss can reduce the corporate income tax base to zero; but after KKEG is added, minimum corporate income tax may arise. VAT, withholding and stamp tax can arise independently of the transaction and the document. It does not follow that every loss-making company must pay corporate income tax.
Practical tips
1. Organise your document system
Archive all invoices, receipts and contracts regularly. Create digital folders: “Incoming invoices”, “Outgoing invoices”, “Contracts”, “Payroll”, and so on. Keeping records every month saves you at year-end.
2. Build a tax calendar
Set reminders on your phone or computer:
- MPHB: 26th of the following month (quarterly option is conditional); KDV-1: the 28th; KDV-2: the 25th
- Provisional tax: 17 May, 17 August, 17 November and 17 February of the following year
- 4th month after year-end: corporate income tax
Penalties and interest can be genuinely high. Even one day’s delay can result in a penalty.
3. Check the e-Invoice and e-Ledger requirement
e-Invoice and e-Ledger obligations are not automatic for all companies. They are assessed by turnover, sector, activity, licence, e-Invoice obligation and the relevant communiqué. Optional transition and mandatory transition are different. Current monetary thresholds are not written here without checking the official communiqué.
4. Always work with a certified public accountant
The tax system is complex and keeps changing. A professional certified public accountant (SMMM):
- Does tax planning
- Informs you about statutory incentives
- Prevents return errors
- Stands with you in tax audits
The fee you pay is small compared with the benefit.
5. Do not neglect withholding and deduction follow-up
VAT-2 and withholding you make as the person responsible must not be forgotten. If you forget, you pay the withheld amount out of your own pocket and also receive a penalty. It must be on your monthly checklist.
6. Plan cash flow around tax periods
Especially in provisional-tax and corporate-tax periods, keep enough cash in the treasury. Pay before the last day and avoid the stress.
7. Use exemptions and incentives
Do not miss R&D incentives, regional support or investment deductions. Discuss with your accountant which incentives you can use.
8. Retention periods: VUK 5 years, TTK 10 years
Under the Tax Procedure Law (VUK) there is generally a five-year retention period for tax books and documents. Under the Turkish Commercial Code (TTK) a ten-year retention period generally applies to commercial books and documents (Art. 82). Special laws, an ongoing audit or lawsuit, carried-forward losses, depreciation and investment can make actual retention longer. It does not follow that you may destroy documents after five years.
Related calculators and articles
Closing remarks
In a limited or joint-stock company, corporate income tax, VAT, withholding, stamp tax and provisional tax are not a single “package”. Each liability follows its own law, transaction and document.
- Corporate income tax: general 25% for limited/joint-stock companies; minimum rate 10% (earnings before deduction/exemption).
- VAT: general rates 1% / 10% / 20%; do not confuse exemption with a reduced rate.
- Withholding: wages, freelance receipts, rent and dividends (15%) are separate regimes.
- Stamp tax: general contracts 9.48 per mille, leases 1.89 per mille; returns are subject to lump-sum stamp tax in 2026.
- Provisional tax: an advance payment of the final tax; the fourth period is 17 February.
Before an important transaction, check the current GİB communiqué, tariff and calendar, or consult your certified public accountant.
This article is general information; it is not a guarantee that applies to every case.
Note: Sources were checked as of 30 August 2026. Legislation can change; confirm the official text before acting.
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