​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Türkiye has one of the most competitive corporate tax rates among OECD member countries. The Turkish corporate tax legislation has noticeably clear, objective, and harmonized provisions that are in line with international standards. The Turkish tax legislation may be classified under three main headings: 

1. Income Taxes 

The Turkish tax legislation includes two main income taxes, namely, personal income tax and corporate income tax.​ 

1.1. Personal Income Tax

Real persons' income is subject to personal income tax. Income is defined as the net amount of all earnings and revenues derived by an individual within a single calendar year. An individual’s income may consist of one or more of the following income elements:  ​

​Agricultural profits​​​​​

B​​usiness profits

​Salaries and wages

​​Income from 
independe​​nt personal services

​​Income from immovable property and rights (rental income)

Income from movable property (income from capital investment​)

O​ther income and earnings
The Turkish income tax scale is progressive, meaning that tax rates increase as one’s income grows. Individual income tax rates vary from 15% to 40%. Individual income tax rates applicable for 2024 are as follows: 

Employment Income Tax Brackets


​Taxable Income (TRY)
​Tax on Lower End (TRY) Tax on Excess (%)
Lower End Upper End

Wages up to the minimum wage are not subject to income tax and stamp duty. This also applies to daily meal and transportation allowances, which have been set at TRY 110 and TRY 56, respectively, for 2023. 

Non-Employment Income Tax Brackets


​Taxable Income (TRY)
Tax on Lower End (TRY) Tax on Excess (%)
Lower End Upper End


Assuming an individual has an annual taxable employment income of TRY 300,000, the following tax amounts would be payable: 

Lower End (TRY) Upper End (TRY) Tax Rate (%) Calculation Tax Amount (TRY)
0110,00015110,000 * 0.1516,500.00
230,00020(230,000 - 110,001) * 0.2024,000.00
300,00027(300,000 - 230,000) * 0.2718,900.00
Total Tax Amount59,400.00
Minimum Wage Tax Exemption*35,305.13
Payable Tax Amount 24,094.89​

*For 2024, the annual minimum wage tax exemption is TRY 35,305.13 and applies to all employment income.

1.2. Corporate Income Taxes (CIT)

When the income elements specified in the Income Tax Law are derived by corporations, taxation is applied to the legal entities of these corporations. Corporate taxpayers defined in the law are as follows:  ​

C​apital companies


P​ublic economic enterprises

Economic enterprises owned by associations and foundations​

J​oint ventures
The corporate tax rate in Türkiye for general business income in 2023 is set at 25%. However, the tax rate is 30% for banks and financial institutions such as electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reassurance companies, and pension companies. In addition, exporters will benefit from a reduced corporate tax rate of 5% on their export income.

2. Taxes on Expenditure 

2.1. Value Added Tax (VAT)

The generally applied VAT rates are set at 1%, 10%, and 20%. Commercial, industrial, agricultural, and independent professional goods and services, goods and services imported into the country, and deliveries of goods and services as a result of other activities are all subject to VAT. 

2.2. Special Consumption Tax (SCT)

Four main product groups are subject to SCT at different tax rates: 

  • Petroleum products, natural gas, lubricating oil, solvents, and derivatives of solvents
  • Automobiles and other vehicles, motorcycles, planes, helicopters, yachts
  • Tobacco and tobacco products, alcoholic beverages
  • Luxury products
Unlike VAT, which is applied on each delivery, SCT is charged only once.

2.3. Banking and Insurance Transaction Tax

Banking and insurance company transactions remain exempt from VAT but are subject to a Banking and Insurance Transaction Tax. This tax is levied on the income earned by banks, such as loan interest. Although the general rate is 10%, certain transactions, such as consumer loans, are taxed at %15 as of July 2023. Moreover, interest generated on interbank deposits is taxed at a lower rate of 1%. A tax of 0.2% has been introduced for the sales of foreign currency.

2.4. Stamp Duty

Stamp duty applies to a wide range of documents, including contracts, notes payable, capital contributions, letters of credit, letters of guarantee, financial statements, and payrolls. Stamp duty is levied as a percentage of the value of the document at rates ranging from 0.189% to 0.948% or is collected as a fixed price (a pre-determined price) for some documents.

3. Taxes on Wealth 

There are three kinds of taxes on wealth: 

  • ​Property taxes
  • Motor vehicle tax
  • Inheritance and gift tax
Property tax is levied on buildings, apartments, and land owned in Türkiye at a rate of 0.1% to 0.6%, while Contribution to the Conservation of Immovable Cultural Property is levied at a rate of 10% of this property tax. Motor vehicle taxes are collected each year in fixed amounts that vary according to the age and engine capacity of the vehicles. Meanwhile, inheritance and gift taxes are levied at a rate of 1% to 30%.​​​