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🇹🇷 Corporate Tax in Turkey

Headline rate: 25%

Limited Liability Company (Ltd Şti)

Ltd Şti companies pay 25% corporate income tax on worldwide income. VAT (KDV) applies at 20% standard rate, with reduced rates of 10% and 1% for certain goods. Dividend distributions to non-resident shareholders are subject to 15% withholding tax, reducible under applicable double tax treaties. Quarterly advance corporate tax payments are required. Companies must maintain statutory books in Turkish and file annual corporate tax returns by the end of April.

Joint Stock Company (AŞ)

AŞ companies are taxed identically to Ltd Şti entities: 25% corporate income tax on worldwide income. Dividends paid to non-resident shareholders are subject to 15% withholding tax, reducible under double tax treaties. The AŞ is eligible for the same tax incentives, including technology development zone exemptions and R&D deductions. AŞ companies above certain revenue thresholds must have their financial statements independently audited under Turkish Financial Reporting Standards.

Key Facts

  • Double tax treaties: 89
  • Memberships: NATO, G20, OECD, WTO, Council of Europe, Customs Union with EU
  • Legal system: Civil law (European-influenced)
  • Fiscal year: January – December

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.