Taxes in Turkey depend on what you are doing, not simply on whether you own a Turkish business. Selling, importing, hiring, renting an office, paying a consultant, distributing dividends and signing a contract can each trigger a different tax analysis.
For an entrepreneur, the practical approach is to ask: What transaction is happening, who are the parties, where are they tax-resident, and which tax rules apply? This page is a decision map. It routes each common transaction to the right Turkish tax question instead of duplicating detailed rate tables that can become outdated.
Last verified: 17 September 2026. The Revenue Administration currently publishes dedicated 2026 guides for newly starting corporate taxpayers, corporate tax, minimum corporate tax and other tax topics, and maintains a live tax calendar and Digital Tax Office.
Which Tax Applies to Which Business Transaction?
| Transaction |
Main tax questions |
Where to go next |
| Sell goods or services in Turkey |
VAT classification, taxable corporate profit, invoice/e-document rules |
VAT in Turkey |
| Import goods |
Customs classification/value/origin, customs duty, import VAT, possible SCT or product controls |
Customs clearance in Turkey |
| Export goods or services |
VAT exemption/refund conditions, corporate-tax treatment, customs/origin evidence |
VAT refunds for exporters |
| Pay a freelancer or independent professional |
Recipient status, income-tax withholding, VAT/document type |
Stopaj / withholding tax |
| Pay an overseas supplier |
Non-resident withholding, treaty, VAT/reverse-charge route, permanent-establishment issues |
VAT route for foreign businesses |
| Rent an office |
Landlord status, possible rent withholding, VAT treatment, lease stamp tax |
Stamp tax / damga vergisi |
| Hire an employee |
Payroll income tax, SGK, payroll declarations, payslip and payment controls |
Payroll in Turkey |
| Distribute company profit |
Corporate tax already borne by the company, dividend withholding, treaty position |
Corporate tax in Turkey |
| Sign or amend a contract |
Whether the document itself falls within the Stamp Tax Law and whether an exemption applies |
Damga vergisi guide |
| Receive personal income as a foreign individual |
Personal tax residence, Turkish-source income, annual return and treaty credits |
Income tax in Turkey for foreigners |
Map tax and reporting triggers before your Turkish company starts trading.
1. Starting a Turkish Company Does Not Create One Single “Startup Tax”
Incorporation creates a legal and tax identity, but the company’s ongoing tax profile depends on what happens after registration. Capital contributions, operating revenue, payroll, imports, leases and dividends are not the same tax event.
A new limited or joint-stock company should establish its accounting and filing workflow before trading. The Revenue Administration’s 2026 publications include a specific brochure for newly starting corporate taxpayers, which is a better starting point than carrying forward a generic 2024 or 2025 checklist.
For the recurring first-year timetable, use the 2026 business-tax calendar. This page instead answers the earlier question: which tax issue should be tested before a transaction is approved?
2. Selling in Turkey: VAT on the Transaction, Corporate Tax on Profit
For most operating companies, two different layers are easy to confuse. VAT is generally transaction-based, while corporate income tax is based on taxable company profit after the relevant tax adjustments.
The general corporate income tax rate for ordinary corporate taxpayers is 25% for the 2026 accounting period. The Revenue Administration’s 2026 corporate-tax guide lists a 30% rate for specified financial-sector taxpayers and certain build-operate-transfer / public-private-partnership categories, while qualifying export and manufacturing income can benefit from statutory rate reductions where the legal conditions are met. Use the dedicated corporate tax in Turkey guide for the rate calculation rather than applying the 25% headline to every company.
Do not infer a VAT rate merely from a broad product label. Turkey currently uses main VAT rate categories of 20%, 10% and 1%, with classification and exemptions determined by the applicable rules. The detailed VAT guide should control the rate decision.
3. Imports: Customs and Tax Must Be Analysed Together
An import can involve more than one payment at the border. The correct result depends on the product’s customs classification, customs value, origin or preferential status, import regime and any sector/product controls.
Potential layers include customs duty, import VAT, additional customs measures and Special Consumption Tax for covered products. An A.TR document, preferential origin document or Customs Union status does not mean every import becomes tax-free.
Assess customs procedures and domestic VAT treatment separately. The importer customs-execution guide explains the shipment process; the VAT guide explains domestic VAT treatment.
4. Exports: “VAT Exempt” Does Not Mean “No Tax Questions”
Qualifying exports can benefit from VAT exemption and refund mechanisms, but the evidence and transaction conditions matter. A Turkish exporting company can still have corporate income tax, payroll, withholding, customs and document obligations.
For exporters, separate three questions:
- Does the supply qualify for the relevant VAT exemption?
- Is there recoverable input VAT and, if so, what refund/offset route applies?
- What is the company’s corporate-tax treatment for the resulting profit?
This prevents a common mistake: turning one VAT exemption into a claim that the entire export business is tax-exempt.
5. Paying a Consultant: Individual and Company Suppliers Are Not the Same
A Turkish company paying an individual independent professional can face income-tax withholding where the statutory rule applies. An ordinary service invoice issued by another resident Turkish company is not automatically subject to the same 20% withholding just because it says ‘consulting’.
Before payment, classify the supplier as an employee, self-employed individual, Turkish company or non-resident. Then test stopaj, VAT and documentation separately. The transaction description alone is not enough.
6. Paying a Foreign Supplier: Run Two Separate Tests
Cross-border payments can create both an income/corporate withholding question and a separate VAT question. The result can depend on the income category, place of supply, whether the foreign company has a Turkish establishment, treaty provisions, beneficial ownership and other transaction facts.
Do not use one generic ‘foreign service’ tax rate. For material payments, retain the contract, invoice, service description, tax-residence certificate where relevant and the documented tax analysis before funds are released.
7. Renting an Office: The Landlord’s Status Changes the Tax Analysis
Workplace rent can create different results depending on whether the landlord is an individual or a company and on the legal/tax characteristics of the lease. A business paying rent to an individual landlord may have a withholding obligation; a corporate landlord is not automatically treated the same way.
The lease itself can also require a stamp-tax review. That review concerns the document, not simply the fact that the company has an address. Avoid rules that claim a particular address type by itself creates a fixed withholding percentage.
8. Hiring: Payroll Creates a New Compliance Stream
Once a company hires, it adds payroll and social-security obligations to its existing tax map. Typical controls include gross-to-net payroll, employee income-tax withholding, SGK contributions, payslips, the Muhtasar ve Prim Hizmet Beyannamesi and payment/reconciliation evidence.
Employment does not change the company’s VAT or corporate-tax guides; it adds another recurring layer. Keep first-hire SGK activation and monthly payroll as separate processes.
9. Dividends: Company Tax and Shareholder Withholding Are Different Layers
A company first calculates its own corporate tax. When distributable profit is later paid to shareholders, dividend withholding can create a second, separate tax event. For many individual and non-resident recipients, the current domestic starting rate is 15%, while an applicable double taxation treaty may cap the Turkish rate differently.
Do not calculate the shareholder’s net distribution from an old 10% blog example. Confirm the recipient type, treaty and supporting residence evidence before payment.
10. Contracts: Damga Vergisi Is Document-Specific
Turkey’s stamp tax does not apply as one flat charge to every contract, invoice or business document. The signed instrument must be classified under the Stamp Tax Law, and exemptions or zero-rate provisions must be checked before applying a rate.
A commercial agreement, lease, guarantee, amendment or assignment can produce different results. Use the executed document and all related undertakings, not a draft title alone.
11. Some Taxes Apply Only to Specific Sectors or Business Models
Do not add every Turkish tax to every company forecast. Sector- or transaction-specific taxes can include Special Consumption Tax, Banking and Insurance Transactions Tax, Digital Services Tax, accommodation tax, tourism contribution and other levies.
For example, Digital Services Tax applies only when the statutory service and threshold conditions are met; its rate became 5% from 1 January 2026 and is scheduled to become 2.5% from 1 January 2027. A normal local software company is not automatically a Digital Services Tax taxpayer merely because it operates online.
Use This Five-Step Tax Decision Before Approving a Transaction
- Define the transaction: sale, purchase, import, export, rent, salary, service fee, royalty, interest, dividend or document.
- Identify both parties: individual/company, resident/non-resident, related/unrelated.
- Identify the relevant tax areas: corporate tax, VAT, withholding, payroll/SGK, customs, stamp tax or a sector levy.
- Check the live rule and date: use the current Revenue Administration calendar, current-year guides and any extension circular.
- Keep evidence: contract, invoice, declaration, receipt, residency/treaty evidence, customs documents and calculation file as applicable.
The Revenue Administration’s current tax calendar is especially important because deadlines can fall on the next working day or be extended. For example, its July 2026 calendar separately lists income/corporate withholding, quarterly withholding for eligible taxpayers and VAT-withholding events rather than treating them as one filing.
Official Starting Points
How Workon Fits into the Tax Workflow
Workon can coordinate the operational setup around a Turkish company: company formation, registered-address and office solutions, collection of corporate documents, bank-account process support and the tax/compliance handoff. Where the transaction requires regulated tax, legal or customs judgement, Workon can align the relevant licensed CPA/SMMM, lawyer or customs professional with the wider company workflow so the operational and professional workstreams stay connected.
For a newly established company, use the Workon company registration service together with the first-year tax calendar so tax ownership is assigned before the first invoice, payment or hire.
Frequently Asked Questions
The answer depends on the transaction. Common tax areas include VAT on supplies, corporate tax on taxable profit, withholding tax on certain payments, payroll and SGK for employees, customs and import taxes, stamp tax on certain documents, and sector-specific taxes where their legal conditions are met.
No. Incorporation creates a legal and tax identity, but taxes arise from later events such as sales, payroll, imports, leases, payments to suppliers, dividends and taxable documents. Each transaction should be classified separately.
VAT is generally transaction-based and applies to taxable supplies under the applicable rate or exemption rules. Corporate income tax is calculated on the company’s taxable profit after the relevant tax adjustments. The two are separate tax layers.
No. Qualifying exports can benefit from VAT exemption and refund mechanisms, but an exporting company can still have corporate tax, payroll, withholding, customs, documentation and other obligations. The VAT exemption does not make the entire business tax-exempt.
Start by defining the transaction, identifying the parties and their residence status, selecting the relevant tax areas, checking the current official rule and date, and keeping the supporting contracts, invoices, declarations and other evidence. Material tax decisions should be confirmed with the appropriately qualified Turkish professional.
Because VAT, corporate income tax, withholding, payroll, customs, stamp tax and sector-specific taxes arise from different legal events and taxpayer facts. A headline rate from one tax should not be carried into another transaction without first classifying the payment, supply or profit being taxed.
Current-rule note: Last reviewed 17 September 2026. The correct Turkish tax treatment depends on the transaction, parties, tax residence, product or service, documentation, treaty position and current legislation. Confirm material decisions against the current official rule; Workon can coordinate the relevant licensed CPA/SMMM, legal or customs workstream with the wider company process where needed.
