August 5, 2018by Ezgi Aydemir0

Liability of Income Tax in Turkey

  Turkey have two types of income tax. These are ‘income tax’ and ‘corporation tax’.

The main differences between these two taxes are
For  income tax, a liable person is an individual while in corporation tax, liability lies with the corporation itself.

  1. Income Tax:


       Yearly Income                               The Amount of the Tax
          14.800TL  %15
          34.800TL Up to 14.800TL, the tax is 2.220TL; for the rest the percentage is %20
          80.000TL Up to 34.000TL the tax is 6.060TL; for the rest the percentage is %27
      over 80.000TL Up to 80.000TL the tax is 18.480TL; for the rest the percentage is %30

Currently income tax is calculated based on the amount of the income. The tax percentage varies between the rate of 15% up to 30%. You may see the detailed chart below:

Are you liable for paying the income tax?

      You might be earning in Turkey but living abroad, or not earning anything in Turkey but live there; these do not necessarily mean that you are supposed to be a taxpayer in Turkey.

In Turkish Tax Law, taxpayers are divided into two types:

  1. a) Full Taxpayer b) Limited Taxpayer
  2. a) Full Taxpayers: Full taxpayers are responsible for paying the tax for every income they earn in one calendar year.
  3. The people who are resident in Turkey for 6 months or more, in a calendar year, must pay taxes for all the income they earn in a year.
  4. The people who work in a firm or company which is based in Turkey and had to go overseas for work necessities are also liable to pay taxes for every income they get. But if a person pays taxes in a foreign country as well, these payments are going to be reduced from the amount of tax which is supposed to be paid in Turkey.
  5. b) Limited Taxpayers:
  6. If someone is resident in Turkey due to being treated, imprisoned or conviction, they are not obligated to pay taxes for the income which is earned in Turkey.
    II. The scholars, scientists, experts, officials, media and press correspondents who come to Turkey for a limited time and specified tasks are only responsible for paying the tax if they are earning in Turkey.
  7. Corporate Tax: The subject of corporate tax is basically taxes on corporate earnings. In other words, they are taxes on the net profits that legal entities earn in a calendar year.
    The Corporate Tax Law includes some exceptions when it comes to identifying which corporates are liable for this tax. Current rate is announced as 22% for the year of 2018.Corporate taxpayers are also divided to two, which are again named as:
    a) Full Taxpayers b) Limited Taxpayer

    a. Full Corporate Taxpayers: Institutions whose legal or work centres are based in Turkey are liable for all the income they receive, even if they receive most of their income from foreign countries.
         b. Limited Corporate Taxpayers: Institutions whose legal or work centres are not based in Turkey are liable for only the income they receive from Turkey.


For more information and questions please email b.orhan@londonlegalint.co.uk Mrs Burcu Orhan Holmgren is the senior partner in London Legal International and is in charge of our Turkish Civil Law division.

Ezgi Aydemir

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