Corporate Tax in Turkey: A 2026 Guide for Foreign Companies
Corporate tax is one of the most important obligations for any company operating in Turkey, including foreign-owned businesses. This guide explains how corporate income tax works in Turkey, who must pay it, the main rates, filing deadlines and the most common questions foreign investors ask. Tax rates and thresholds can change with annual legislation, so always confirm the current figures with your accountant before filing.
Who Pays Corporate Tax in Turkey?
Companies that are tax resident in Turkey are taxed on their worldwide income, while non-resident companies are generally taxed only on income earned in Turkey. A company is usually treated as resident if its legal seat or place of effective management is in Turkey. Foreign-owned companies registered in Turkey, such as a Limited Liability Company or Joint Stock Company, are Turkish tax residents and file corporate tax in the same way as locally owned firms.
Corporate Tax Rates and Key Taxes
The headline corporate income tax rate in Turkey is 25% of company profits. Alongside it, companies typically deal with several other taxes during the year. The table below summarises the main ones and their current rates; because rates are set by annual legislation, confirm the latest figures with your advisor before filing.
| Tax | Current rate | Applies to | Typical frequency |
|---|---|---|---|
| Corporate Income Tax | 25% | Annual company profits | Annual return |
| Provisional (Advance) Tax | 25% | Quarterly profits, credited against the annual liability | Quarterly |
| VAT (KDV) | 1% / 10% / 20% | Goods and services, depending on category | Monthly |
| Withholding Tax | Varies by payment type | Salaries, rent, certain payments | Monthly |
| Stamp Tax | Varies by document | Contracts and certain documents | As incurred |
The standard VAT rate is 20%, with reduced rates of 10% and 1% applying to specific categories of goods and services.
Filing and Payment Deadlines
Corporate tax is reported on an annual return, while provisional tax is calculated and paid quarterly during the year and offset against the final annual liability. VAT and withholding tax are generally filed monthly. Missing a deadline can trigger penalties and interest, so most foreign-owned companies use a local accountant to manage the full tax calendar.
Common Deductions and Allowances
Legitimate business expenses incurred to generate income are generally deductible, provided they are properly documented under Turkish accounting rules. Depreciation, eligible financing costs and certain incentives may also reduce the tax base. Because documentation requirements are strict, accurate bookkeeping is essential to claim deductions safely.
How We Help Foreign Companies
We manage corporate tax and the surrounding compliance calendar for foreign-owned companies in Turkey, in English. Explore our tax compliance and tax services and accounting services, or see how it fits with payroll and fiscal representation. New to Turkey? Start with our guide on how to set up a company in Turkey as a foreigner.
Frequently Asked Questions
What is the corporate tax rate in Turkey?
The general corporate income tax rate in Turkey is 25% of company profits, with certain sectors and situations taxed differently. Because rates are set by annual legislation, confirm the current rate with your accountant before filing.
Do foreign-owned companies pay the same corporate tax as local ones?
Yes. A company registered in Turkey is a Turkish tax resident and is taxed on the same basis regardless of who owns it.
What is provisional tax?
Provisional tax is an advance payment of corporate tax, charged at the same 25% rate, made quarterly during the year and credited against the final annual liability.
Are foreign companies without a Turkish entity taxed in Turkey?
Non-resident companies are generally taxed only on Turkey-sourced income. Depending on your situation, fiscal representation may be enough to meet your obligations.
Talk to Our Tax Team
For tailored advice on corporate tax in Turkey and a clear quote for ongoing compliance, contact our team. We work in English and support foreign investors at every stage.