Legislation Categories
Legislative Updates
Here you can access most recent articles on legislative updates regarding Personal Data Protection Law, Social Security Law, Taxation Law, Occupational Health and Safety Law, Code of Obligations, Labor Law, Turkish Commercial Code, Law on Protection of the Value of Turkish Currency, Foreign Exchange Legislation, and Immigration Law in Türkiye.
Bilateral Treaties
You can access the dates of the most recent international bilateral social security and double taxation treaties made between Türkiye and other countries and relevant documents here.
There are many countries with a taxation system, which has various layers and
a complex structure. In this regard, tax regime in Türkiye is no exception. The first step is to have an
understanding on the fundamental concepts of the tax regime in Türkiye.
The taxes in practice in the Turkish tax system are mainly as follows,
Fixed tax and progressive tax are applied to various incomes in Türkiye. At this point, it is better to emphasize two topics that concern individuals and organizations.
The earnings that can be collected from the natural persons in a calendar year under the following topics are described as income tax in Trukey.
Other income and earnings usually refer to an incidental income. For example, it can be the income obtained from the National Lottery or in the way if a person without salary income earns an income from a non-continuous activity.
Income Tax Rates of Employees: For the income tax of employees, a progressive tax system has been determined according to the cumulative income obtained. These rates are applied as 15%, 20%, 27%, 35% and 40% to the earning brackets announced every year.
Corporate Tax Rate: As of 2020, the corporate tax rate is the fifth-lowest tax rate among OECD countries. With a provisional law, the rate was applied as 22% for 2018, 2019, and 2020. In 2021, the corporate tax rate was applied as 25%. From 2022, the corporate tax rate will be applied as 23%.
TAXATION TYPE | DECLARATION PERIOD OF THE TAX | TAX PAYMENT DUE DATE | ADDITIONAL NOTES |
---|---|---|---|
Corporate Tax Return | It is declared until the end of April, in the following year | Taxation fee shall be paid at the end of April | Corporate Tax rate is set as 23% of the profit for 2022, and 22% for the export tradin companies and industrial corporation. |
Income Tax Return | It is declared until the end of March, in the following year |
|
The tax calculated in the annual income tax return is calculated according to the cumulative percentile. The tax is calculated over the rates starting from 15% up to 40%. |
Provisional Corporate Tax Return Provisional Income Tax Return |
Declared quarterly within a yearly period. The Q4 Quarterly Tax Return will be no longer submitted as of 2022
|
|
|
MUHSGK 1003A - MUHSGK 1003B (Withholding and Premium Service Declaration) |
In cases where the Withholding and Premium Service Tax Return Decleration is conducted quarterly;
|
Taxation fee shall be paid by the 26th of the month of declaration, by evening. |
|
VAT Return | Declaration shall be made by the 26th of each month. | Taxation fee shall be paid by the 26th of the month of declaration, by evening. | VAT Return shall be declared on a monthly basis. |
Recycling Contribution Share Declaration | 2022 GEKAP declaration will be declared quarterly, until the end of the following month. | Taxation fee shall be paid by the end of following month. | Declared quarterly. |
Tourism Share Declaration | For the related period, it is declared on the last day of the following month. | Taxation fee shall be paid by the end of following month. | It is declared and paid monthly by the corporate taxpayers on the last day of the following month. It is declared and paid by non-Corporate Taxpayers in three-month periods on the last day of the month following the relevant period. |
Stamp Tax Duty | In case where there is an Agreement(rent contract etc.) that shall be liable to Stamp Tax Duty, the tax fee shall be paid by the 26rd of the following month. | Taxation fee shall be paid by the 26th of the month of declaration, by evening. | In cases of having a legal Agreement between the parties, declaration shall be conducted. |
Social Security Declaration (MUHSGK 1003A - MUHSGK 1003B) |
For the EE registered into the SSI system, declarations shall be conducted by the 26th of each month. It is declared via MUHSGK 1003A or MUHSGK 1003B. | Tax payments shall be conducted by the last work day of the related month of the declaration. | Shall be declared monthly as long as the legal entity has employees on payroll. |
TAXATION TYPE | DECLARATION PERIOD OF THE TAX | TAX PAYMENT DUE DATE | ADDITIONAL NOTES |
---|---|---|---|
MUHSGK 1003A - MUHSGK 1003B (Withholding and Premium Service Declaration) |
In cases where the Withholding and Premium Service Tax Return Decleration is conducted quarterly;
|
Taxation fee shall be paid by the 26th of the month of declaration, by evening. |
|
Stamp Tax Duty | In case where there is an Agreement (rent contract etc.) that shall be liable to Stamp Tax Duty, the tax fee shall be paid by the 26rd of the following month. Liaison Offices, due to entity type cannot register for stamp tax duty responsibility. Therefore, if there is an agreement that is subject to stamp tax, the tax can be declared and paid by the other signatory party and the half of the tax can be reflected to the LO. Or, the relevant LO can apply to the tax authority the entity is registered to and declare the tax. |
Taxation fee shall be paid by the 26th of the month of declaration, by the evening. | In cases of having a legal Agreement between the parties, stamp duty shall be declared. |
Social Security Declaration (MUHSGK 1003A - MUHSGK 1003B) |
For the EE registered into the SSI system, declarations shall be conducted by the 26th of each month. It is declared via MUHSGK 1003A or MUHSGK 1003B. | Tax payments shall be conducted by the last work day of the related month of the declaration. | Shall be declared monthly as long as the legal entity has employees on payroll. |
Notification!
Contents provided in this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance put in the preparation of this article, CottGroup® and its member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject.
Please consult your client representative if you are a customer of CottGroup® or consult a relevant party or an expert prior to taking any action in regards to the above content.
Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Benefits, Payroll and Compliance informed by data and designed for people.
Learn more at www.adp.com
ADP, ADP logo and the slogan "Always Designing for PeopleTM" belong to the registered trademark of ADP, LLC.
Awards for CottGroup® Services
(*) Services Exporters' Association - 2021
(**) Bilişim 500 - 2022
Lets start
Get a quote for your service requirements.