Turquia: Entorn econòmic
Long-term capital gains of a company are taxed as ordinary income, with an exemption of 75% of capital gains from the sale of shares in domestic participations (provided that the shares have been held for at least two years and the gains from the sale will be kept in a special reserve account for at least five years).
Capital gains from the sale of immovable property held for a minimum period of two years are exempt from tax up to 50%.
A Turkish international holding company can avoid corporate income tax on capital gains from selling foreign participation, as long as the foreign participation has been held for a minimum of two years. To qualify as an international holding company, the Turkish company needs to meet the following criteria:
Start-up expenses are considered deductible expenses as incurred. Moreover, the taxpayer has the option to capitalise such expenses and depreciate them over five years in equal amounts.
Donations to listed charities and for the construction of schools, hospitals, and scientific research organisations are deductible at up to 5% of the company’s gross profit. Under certain conditions, payments for pensions and employee termination benefits are deductible for corporate income tax purposes.
"Strategic" investments (as determined by the government, such as investment in the production of products that rely heavily on imports) give rise to a deduction of up to 100% of corporate tax, along with several other advantages concerning customs duties, employer's social security contributions, etc.
Companies, excluding those in the banking, finance, and insurance sectors, may benefit from a tax incentive called the notional interest deduction when making cash capital contributions. This deduction allows companies to subtract a calculated notional interest, based on their capital amounts contributed after July 1, 2015, from their taxable income. The deduction is equal to 50% of the notional interest calculated on the qualifying capital increase (after accounting for qualifying decreases). However, for capital sourced from abroad, the deduction rate is increased to 75%. The notional interest rate is determined by the annual interest rates announced by the Turkish Central Bank for commercial bank credits.
Tax losses can be carried forward for up to five years. The carryback of losses is prohibited. Charges for royalties and interest paid to foreign affiliates may be deductible for corporate income tax purposes when transfer pricing and thin capitalisation rules are followed.
For further information on available tax incentives, consult the dedicated page on the Revenue Administration portal.
Stamp tax applies to a wide range of documents, including, financial statements, and payrolls. Stamp tax is levied as a percentage of the value stated on the agreements at rates varying between 0.189% and 0.948%. Salary payments are subject to stamp tax at a rate of 0.759% over the gross amounts.
From 1 March 2020, Turkey levies a "Digital Service Tax" of 7.5% on service providers whose revenue derived from digital services during the previous fiscal year exceeds TRY 20 million in Turkey or EUR 750 million worldwide. The president is authorized to double the rate or reduce it to 1%, depending on the type of digital service.
A banking and insurance transaction tax applies at a general rate of 5% on bank and insurance charges. A Resource Utilisation Support Fund applies on foreign currency-denominated loans at varying rates according to their maturity, as well as on TRY-denominated loans with a maturity of less than a year. Foreign exchange purchases from banks, insurance companies, and foreign exchange offices, are subject to a 0.2% rate.
Other taxes include a tourism share (levied at TRY 2 and TRY 7.5 per TRY 1,000 of total net sales and leasing income) and an accommodation tax (set at 2%, the tax was implemented from 1 January 2023).
Social security contributions for both the employer and the employee total 34.5% of an employee’s salary; 14% paid by the employee and 20.5% by the employer. In addition to social security payments, unemployment contribution is 3% of the salary, 1% for the employee and 2% for the employer. The monthly social security ceiling is TRY TRY 75,060 for the period running from 1 January to 31 December 2023.
Türkiye | Eastern Europe & Central Asia | United States | Germany | |
Number of Payments of Taxes per Year | 10.0 | 13.9 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 170.0 | 226.2 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 42.3 | 36.5 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Income Tax Rate (Employment Income) | 2023 |
TRY 0 to 70,000 | 15% |
TRY 70,001 - 150,000 | 20% |
TRY 150,001 - 550,000 (370,000 for non-employment income) | 27% |
TRY 550,001 (370,000 for non-employment income) - 1,900,000 | 35% |
Above TRY 1,900,000 | 40% |
Donations to specific institutions are tax-deductible. Individuals paying their taxes via annual tax returns can deduct their documented education expenses incurred in Turkey by themselves and their families from income declared on the tax return, up to 10% of the income tax base. Personal insurance premiums (for self, spouse, and/or children) are deductible but are limited to 15% of the individual's monthly gross income and annual minimum wage amount.
For business income, the same general deductions as apply to corporations are available.
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Actualitzacions: November 2023