Turkish Taxation System
In Turkish taxation system; rights, burdens, ways of implementing mandates and carrying out duties along with principals of accrual are regulated by the Tax Procedure (TP) Law. This Law comprises procedural and formal provisions of all tax laws. Taxes, duties and charges, and the ones that belong to provincial private administrations and municipalities are within the scope of the Law. However, taxes, duties and charges collected by customs administrations are not subject to the TP Law. Please click here for details of this law and Turkish Taxation System.
Salaries and Wages
Income derived from dependent personal services is subject to the income tax. This income comprises such income from all kinds of employment in both public and private sector as salaries and wages, as well as associated supplementary income such as allowances, bonuses, anniversary gifts, gratuities, commissions, premiums, compensations and other wage and salary related remunerations including benefits in kind at market value.
In determining taxable amount of salaries and wages, the following expenditures are allowed to be deducted from gross amount:
- Legal deduction made according to various laws or regulations,
- Payments made for pensions,
- Payments made for various insurances,
- Payments made for labor union membership.
Please see the 2024 tax rates for income (salaries and wages):
110.000 TL'ye kadar | % 15 |
230.000 TL'nin 110.000 TL'si için 16.500 TL, fazlası | % 20 |
580.000 TL'nin 230.000 TL'si için 40.500 TL (ücret gelirlerinde 870.000 TL'nin 230.000 TL'si için 40.500 TL), fazlası | % 27 |
3.000.000 TL'nin 580.000 TL'si için 135.000 TL, (ücret gelirlerinde 3.000.000 TL'nin 870.000 TL'si için 213.300 TL), fazlası | % 35 |
3.000.000 TL'den fazlasının 3.000.000 TL'si için 982.000 TL, (ücret gelirlerinde 3.000.000 TL'den fazlasının 3.000.000 TL'si için 958.800 TL), fazlası | % 40 |
To see the answers of those questions:
- I want to buy a real estate in Türkiye. What's my tax liability?
- How can I get my tax identification number?
- Can I get refund of the VAT I paid in Türkiye?
please click here.
Tax Deduction for Research and Development:
Being valid from 31.07.2004, %40 of expenditures oriented to new technology and searching of knowledge realized in the structure of enterprise and being valid from 01.04.2008 %100 of these expenditures can be deducted from the corporate income declared by annual tax return.
For further detail regarding the tax incentives in Türkiye please click here.