Türkiye has one of the mostcompetitive corporate tax rates among OECD member countries. The Turkishcorporate tax legislation has noticeably clear, objective, and harmonizedprovisions that are in line with international standards. The Turkish taxlegislation may be classified under three main headings:
1. Income Taxes
The Turkish tax legislation includes two main income taxes, namely personal income tax and corporate income tax.
1.1. Personal Income TaxIndividual income tax rates vary from 15% to 40%.
1.2. Corporate Income TaxesIn Türkiye, the corporate income tax rate levied on business profits is 20% for 2023 and the following years.
2. Taxes on Expenditure
2.1. Value Added Tax (VAT)
The generally applied VAT rates are set at 1%, 8%, and 18%. Commercial, industrial, agricultural, and independent professional goods and services, goods and services imported into the country, and deliveries of goods and services as a result of other activities are all subject to VAT.
2.2. Special Consumption Tax (SCT)
There are four main product groups that are subject to SCT at different tax rates:
• Petroleum products, natural gas, lubricating oil, solvents, and derivatives of solvents
• Automobiles and other vehicles, motorcycles, planes, helicopters, yachts
• Tobacco and tobacco products, alcoholic beverages
• Luxury products
Unlike VAT, which is applied on each delivery, SCT is charged only once.
2.3. Banking and Insurance Transaction Tax
Banking and insurance company transactions remain exempt from VAT but are subject to a Banking and Insurance Transaction Tax. This tax applies to income earned by banks, such as loan interest. Although the general rate is 5%, some transactions, such as interest on deposit transactions between banks, are taxed at 1%. No tax has been levied on sales from foreign exchange transactions since 2008.
2.4. Stamp Duty
Stamp duty applies to a wide range of documents, including contracts, notes payable, capital contributions, letters of credit, letters of guarantee, financial statements, and payrolls. Stamp duty is levied as a percentage of the value of the document at rates ranging from 0.189% to 0.948% or is collected as a fixed price (a pre-determined price) for some documents.
3. Taxes on Wealth
There are three kinds of taxes on wealth:
• Property taxes• Motor vehicle tax
• Inheritance and gift tax
Dealing with Tax Responsibilities in Antalya is easy with Business in Antalya Team:
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