Taxes in Turkey Explained

Akkas CPA is a globally recognized Turkish Accounting Firm with a long record of excellence and professional leadership in providing services for taxes in Turkey. Our accountants provide all kinds of accounting services in Turkey required to run your company in Turkey.

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Akkas CPA offers the best accounting services, at competitive prices to foreign businessmen who have already established or getting ready to establish a company in Turkey.

Taxes in 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 the local and international contexts.

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 with financial legislation.

Corporate Taxes in Turkey

The Turkish standard tax rate is 25% 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.

Taxes in Turkey

VAT in Turkey

The Turkish VAT is usually 20%, but there are incentives granted to basic foodstuff, pharmaceutical products, and others which are subject to a 10% rate, and to the newspapers, magazines, and some farm products which are subject to a VAT of 1% rate.

How can VAT be Refunded in Turkey?

Turkey’s tax law imposes a VAT standard rate of 20% 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.

The application must 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 are the Dividend Taxes in Turkey?

Under the Turkish tax system, all taxable companies are subject to the dividend withholding tax applied at 10% of profits.

What are the Taxes Rates Applied on Other Payments?

There is only a 10% withholding tax on interest paid on loans from nonresidents who 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 has a value of 20%. The rest of the royalties are not subject to taxation.

The technical service fees are taxed at 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 the 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 straightforward 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 filings 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 Taxes in Turkey

Akkas CPA & Turkish Accounting Firm is one of the globally recognized Turkish Accounting Firms with a long record of excellence and professional leadership in Istanbul, Turkey.

Thanks to its nationally recognized accounting services, our accounting firm is now one of the leading accounting firms in Istanbul, Turkey. You may reach our accountants for taxes in Turkey by sending an email to us.

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