Turkey Income Tax Rates for 2015 and Deductions

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%

Above are the 2015 brackets and relevant income tax rates. In principle, individual income and gains calculated on a cumulative basis are subject to income tax at progressive tax rates which vary between 15% and 35% and are calculated on a cumulative basis.

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.

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.