Turkish economy has steadily grown by an average of 7% in the last 10 years. Thus Turkey was able to advance to the world’s 17th place according to the size of the gross domestic product. For the future, a continuous growth of the economy can be assumed.
With over 75 million inhabitants, Turkey is a big market. Particularly, İstanbul, with its 15 million inhabitants, its developed infrastructure and its diverse culture offers an ideal location for foreign companies. Located in the center between Europe, Russia and Asia, an office in Turkey can be a bridge to open up more markets.
Great Staff potential
Turkey has a very well trained and highly motivated workforce. This is an excellent base for commercial activities of all kinds.
Brief Information
Dates of tax returns and payment dates
| Tax Return Type | Deadlines ** | Payment dates |
|---|---|---|
| Tax (VAT) | Until the 24th of the following month | Until the 26th of the following month |
| Collecting tax return * | Until 23rd of the following month | Until the 26th of the following month |
| Preliminary corporate tax declaration first quarter | Until May 14 | Until May 17 |
| Preliminary corporate tax declaration Q2 | Until August 14 | Until August 17 |
| Preliminary corporate tax declaration third quarter | Until November 14 | Until November 17 |
| Preliminary corporate tax declaration fourth quarter | Until 14th February the following year | Until February 17 next year |
| Annual corporate tax declaration | Until April 25 the following year | By the end of April the following year |
| Annual Einkommesteuererklärung | Until March 25 the following year | By the end of March the following year |
*) Collecting tax return (withholding tax): withholding tax, income tax and other various taxes
**) Tax returns are submitted electronically via online financial (tax office-GIB)
Social security declarations and payment dates
| Tax Return Type | Deadlines | Payment dates |
|---|---|---|
| Social Security | Until 23rd of the following month | By the end of the following mont |
Income tax rate for 2017
| Of | To | Tax rate (%) |
|---|---|---|
| 0 TL | 13.000 TL | 15% |
| 13.001 TL | 30.000 TL | 20% |
| 30.001 TL | 70.000 TL | 27% |
| 70.001 TL | 35% |
Payroll tax in 2017
| Of | To | Tax rate (%) |
|---|---|---|
| 0 TL | 13.000 TL | 15% |
| 13.001 TL | 30.000 TL | 20% |
| 30.001 TL | 110.000 TL | 27% |
| 110.001 TL | 35% |
Social Security Contributions
| Of | To | Minimum contribution (TL) | Maximum contribution (TL) |
|---|---|---|---|
| 01.01.2017 | 31.12.2017 | 1.777,50 TL | 13.331,40 TL |
Contribution rates with respect to the insurance
| Employee’s share | 15,00 % |
| Employer’s contribution | 22,50 % |
| Total | 37.50 % |
Various Tax Rates
| Corporate tax rate | 20% |
| Preliminary income tax rate | 15% |
| Rental taxes | 20% |
| VAT Standart | 18% |
| VAT Food | 08% |
| VAT Food Wholesale | 01% |