Akkas CPA & Turkish Accounting Firm is a globally recognized Turkish Accounting Firm with a long record of excellence and professional leadership in Istanbul, Turkey. Akkas CPA provides a wide range of services designed to provide effective tax compliance and advice, aiming to give your business a competitive advantage both in local and international context. At Akkas CPA, we provide tax certification, audit and consultancy services on a local and global scale. Using our in-depth experience and knowledge, we are providing competitive analyses and alternative solutions to our clients while offering them services in terms of compliance to financial legislation.
Corporate Taxes in Turkey
The Turkish standard tax rate is 20% but certain incentives are granted, for example the incomes provided by software development are exempt from paying taxes until January 2024. Also major reductions may be granted for operating in certain regions.
VAT in Turkey
The Turkish VAT is usually 18%, but there are incentives granted to basic foodstuff, pharmaceutical products and other which are subject to an 8% rate and to the newspapers, magazine and some farm products which are subject to a VAT of 1% rate.
How can VAT be Refunded in Turkey?
Turkey tax law imposes a VAT standard rate of 18% which has to be paid by companies. Paying this tax produces effects on the companies’ profits and implies certain procedures. However the Turkish VAT can be recovered by submitting a refund application to the Tax Authorities in Turkey. It is mandatory for the application to contain original invoices, a copy of a recent tax certificate and other documents. Usually the VAT return is completed within 3 to 9 months, but in some cases it can take up to 12 months.
What is the Dividend Taxes in Turkey?
Under Turkish tax system all taxable companies are subject to the dividend withholding tax applied at 15% to profits.
What are the Taxes Rates Applied on Other Payments?
There is only a 10% withholding tax on interest paid on loans from nonresidents which are not financial entities. The rest of the interests are not taxable.
A withholding tax on royalties derived from sales or transfer of intangible assets have the value of 20%. The rest of the royalties are not subject to taxation.
The technical service fees are taxed with 20%. A 15% tax is imposed on branch remittances.
Are there any Incentives for Foreign Investors in Turkey?
Turkey ranks as one of the most sought after companies to invest in, due to its geographical location, natural resources abundance, agricultural heartland, heavy industry and favorable relations with other countries. As a plus, foreign investment is highly valued as the government offers a welcoming environment as well as incentives for investors. Privatization programs in fields of energy, telecommunications, infrastructure, education and health are available for foreign entrepreneurs wishing to invest in Turkey.
Why do I Need a Local Accountant for my Turkish Business?
Even though the financial system in Turkey is straight-forward and there is a well established communication system with the public, it is advisable for a new company, especially foreign-owned to work with a local accountant. Tax fillings and all financial procedures are easily taken care of by a local accountant who has a better understanding of all the required procedures, and more experience in dealing with formalities.
Reach us for Company Taxes in Turkey
Since its foundation, Akkas CPA & Turkish Accounting Firm has been the choice of numerous clients in Turkey. Thanks to its nationally recognized accounting and legal services, our accounting firm is now one of the leading accounting firms in Istanbul, Turkey. You may reach our accountants and lawyers for company taxes in Turkey by sending an email to email@example.com or fill in Contact Form in Contact page.