Types of taxes in Turkey

What are the most popular types of taxes in Turkey?

Each country in the world is based on its own tax system, and Turkey has a tax system that is commensurate with the nature of the state's policy and the rates of income and revenues in it. The most famous types of taxes in Turkey are:

1. Income tax

Income tax in Turkey is divided into two types, the first type is the individual income tax which is calculated by determining the annual income of each individual, and its value ranges from 15 to 35%.

The second type of income tax in Turkey is the corporate income tax, which is also treated on an annual basis, where the annual corporate income is calculated and then the tax is deducted, ranging from 15 to 20%.

2. Value added tax

This tax is imposed on all types of goods, whether services or products and its values vary from one commodity to another. In Turkey, the value-added tax is divided into three levels, as follows:

• Goods for which VAT is 1% such as vegetables, nuts, and dryers.
• Goods for which VAT is 8% such as animals, bags, shoes, and food.
• Goods for which value-added tax is 18%, such as telecom and Internet services.

3. Real estate taxes in Turkey

There are several types of taxes owed on those who want to buy property in Turkey, whether they are a foreigner or a Turkish citizen, and the types of taxes owed on buying property in Turkey are as follows:

 Title deed transfer tax

It is called the title deed transfer fee, and it is a mandatory tax for transferring ownership of the property from the seller to the buyer, and its value is 4% of the total value of the property registered in the sales contract, and it is usually paid equally between the seller and the buyer or if there is an agreement between the two parties to If one of them pays that tax, there is no problem with that.

 Rental income tax

A tax is collected from owners of rental properties and assessed annually so that if the value of the property's rent exceeds the value declared by the government, a tax is imposed on that value.

 Real estate profit tax

The rate of this tax ranges from 15% to 35%, and it is calculated from the value of the profit obtained on the resold property before five years have passed since its purchase. So if that property is sold by its owner after five years have passed since its purchase, that tax is not calculated on it.

 Annual real estate tax

The municipalities in Turkey impose on real estate owners, whether foreign or Turkish, an annual tax payable, amounting to 0.002% of the value of the property registered in the title deed, and it is paid in two installments to the municipality within which the property is located.

4. Expense tax in Turkey

It is one of the main types of taxes in Turkey, and there are several tax classifications under it, such as value-added tax, special consumption tax for vehicles and their types, tobacco, petroleum, recreational products, etc., banking and insurance transaction tax, and paper fee taxes.

5. Wealth taxes in Turkey

These are represented in the taxes imposed on owned apartments and buildings, whose value ranges between 0.1 to 0.6%, in addition to cars, taking into account the age, type, and engine of the car, and inheritance and gift taxes, whose value may reach 30%.

6. Automobile and motor vehicle tax

The tax system in Turkey imposes a tax on owning cars and motor vehicles, taking into account the type of vehicle, the purpose of its purchase, its age, and the nature of the engine.

7. Inheritance tax

The tax system in Turkey deducts a tax on granting gifts and inheritance so that the value of the withholding tax ranges between 1% to 30%.

How to pay taxes in Turkey?

Taxes are paid in Turkey through tax offices spread in all districts of the Turkish states, where in each district there is a government building for tax in which there is a special section for tax collection, and this building is usually next to the municipal building of that district.

In Turkey, you can pay taxes through the government electronic portal, through the e-devlet website or application, and some types of taxes are paid through the accounts of different private or government banks.

Read more : 

Istanbul Financial Center

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Tax payment website in Turkey

The online tax payment website is logged into the Turkish government e-devlet portal through the following link. Where the button appears on the left side of the main page on the site, via the e-devlet, and after logging in, the value and type of taxes and the possibility of paying them directly appear.

Edited by Gars Consulting Company ©