Turkey Income Tax Rates for 2015 and Deductions
Turkey individual income tax rates, corporate taxation, non-resident taxation, capital gains treatment, inheritance and gift tax, and filing and payment information for 2015.
Turkey Income Tax Rate for Individual Tax Payers
Lowest Individual Tax Rate in Turkey is 15% and Highest Rate is 35%.
Residents
| Taxable Income TL | Income Tax Rate % |
|---|---|
| 1 - 12,000 | 15% |
| 12,001 - 29,000 | 20% |
| 29,001 - 1,06,000 | 27% |
| Above 1,06,000 | 35% |
Corporate Tax Rates in Turkey
The corporate tax rate is 20 percent. A resident company is liable to corporate income tax on its worldwide income. A non-resident company is liable to corporate income tax on its Turkish-source income only.
Inheritance and Gift Tax in Turkey
Turkish citizens are subject to inheritance and gift tax on worldwide assets received. Resident foreigners are subject to inheritance and gift tax on worldwide assets received from Turkish citizens and on assets located in Turkey received from resident foreigners or non-residents. Non-resident foreigners are subject to inheritance and gift tax on assets located in Turkey only.
Non Resident Tax Rates in Turkey
Non-residents (limited liability taxpayers) are taxed only on earnings and revenues derived in Turkey.
Capital Gain Tax Rates in Turkey
Capital gains are normally considered to be ordinary income. However, capital gains derived from transfers of shares are exempt from income tax in certain cases. Under a Council of Ministers' Decree, the withholding tax rate is reduced to 0% for capital gains derived by resident and non-resident individuals from the sale of shares traded at the ISE. This is the final taxation.
Capital gains derived from the disposal of the shares without the intermediation of a bank or an intermediary institution (that is, capital gains derived by resident and non-resident individuals from the sale of shares not traded on the ISE) are subject to tax at the general progressive income rates and reported in the annual income tax return. However, if the shares are issued by Turkish resident companies and held for more than 2 years, the gain is not subject to income tax.
Turkey Dates of Filing Returns / Reporting and Payment
Tax Year: 1 January to 31 December
Tax Return Due Date: Tax returns must be filed between 1 March and 25 March.
A taxpayer who derives commercial or self-employment income must file and pay advance income tax quarterly. The advance tax amount equals 15% of net income. The advance payments must be made by the 17th day of the second month following the end of the quarterly tax period. Advance tax paid is deducted from the income tax payable in the final tax return.