Tax law in Turkey regulates the obligations, rights, and penalties related to taxation. It ensures the collection of taxes for public services and governs how tax liabilities are calculated and enforced. At ER&GUN&ER Law Firm, our experienced tax lawyers in Turkey provide guidance to individuals and corporations on matters such as audits, disputes, penalties, and compliance.
Objectives of Turkish Tax Law
- Ensure continuity and fairness in tax collection
- Define taxpayer rights and obligations
- Regulate the process of assessment, collection, and penalty enforcement
- Provide dispute resolution mechanisms for taxpayers
Our Legal Services Include:
- Tax objection petitions and appeals
- Conciliation and settlement procedures
- Representation in nullity lawsuits and tax audits
- Consultation for Turkish and foreign taxpayers
Turkish Tax Code for Individuals
Turkish residents and those spending over 6 months in Turkey are subject to income tax on global income. Income sources include commercial earnings, salaries, agricultural profits, and more.
Corporate Tax Law
Law No. 5520 applies to corporations, cooperatives, public economic enterprises, and foundations. Taxable income includes both profit-seeking and cost-recovery activities. Special provisions apply for business partnerships and investment entities.
Value Added Tax (VAT)
VAT is a consumption tax applied to goods and services. The standard rate is 18%, with reduced rates of 1% or 8% for specific categories. VAT registration is mandatory for entities involved in trade, import/export, or manufacturing.
Tax Crimes and Penalties
- Tax Loss: Hiding income, falsifying documents, or inaccurate reporting
- General Irregularity: Failing to submit required documents
- Special Irregularity: Failing to issue invoices, receipts, or follow bookkeeping rules
- Tax Evasion: Intentional misreporting or concealing business activities
Penalties may include:
- Fines based on missing or evaded taxes
- Late payment interest and administrative sanctions
- Criminal charges and imprisonment for repeat or severe violations
FAQ About Taxation in Turkey
Do foreigners have to pay tax in Turkey?
Yes. Non-residents pay tax on Turkish-sourced income. Residents are subject to worldwide income taxation.
How are taxes calculated?
Income taxes are progressive (15–40%). Corporate tax is 20–25%. VAT and special consumption taxes apply separately.
Is legal support required for tax filings?
Not mandatory, but highly recommended to ensure accuracy and avoid penalties, especially in audits or disputes.
