In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The tax year begins on 1 January and finishes on 31 December of the same year. It is permitted to use a special accounting period with the agreement of the Ministry of Finance.
- Accounting Standards
Since the control of accounts has no longer been totally under government influence, account certification has been carried out in agreement with the " Turkish Code of Commerce".
The results obtained have to be sent to the Ministry of Finance.
Public companies must comply with the accounting principles and standards of the capital market board which are generally in line with IFRS.
- Accounting Regulation Bodies
- Accounting Reports
The accounting structure includes:
- Consolidated Balance Sheet
- Floating Assets (liquid assets; Treasury bonds; short term investments; receivables; stocks; other floating assets)
- Total Floating Assets
- Fixed assets
- commercial receivables
- Publication Requirements
The balance sheet and the profit and loss account must be expressed in Turkish currency and drawn up in a clear, complete and easily understandable way quarterly and annually (annual accounting balance sheet).
- Professional Accountancy Bodies
Expert Accountants' Association of Turkey
TÜRMOB , Union of Chambers of Certified Public Accountants of Turkey.
- Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact audit companies:
- Mazars Denge
- Pricewaterhouse Coopers
- Accounting News
Turkish accounting news
EIN News on Turkey
- Nature of the Tax
KDV: Katma Deger Vergisi (= Value added tax)
- Tax Rate
Standard rate of 18%.
- Reduced Tax Rate
There are reduced rates of 8% which is applicable to basic foodstuff, pharmaceutical products, books and ebooks and other items; and 1% for journals, newspapers, certain farm products. Also, certain supplies are VAT exempt in Turkey.
- Other Consumption Taxes
OTV (Özel Tüketim Vergisi = Special consumption tax) concerns petroleum products, vehicles, tobacco, alcohol, sodas and luxury products.
Learn more about Service Providers in Turkey on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
- Tax Rate For Foreign Companies
Turkish companies are taxed on their global income, while companies whose headquarters and "effective management" are abroad are only taxed on their income in Turkey. For additional information access the Invest in Turkey website (in English).
- Capital Gains Taxation
Long term capital gains are taxed in Turkey at the normal corporate income tax rate.
- Main Allowable Deductions and Tax Credits
40% of expenses for research and development inside a company are deductible from the tax base. For further details on company tax deduction, consult the Revenue Administration.
- Other Corporate Taxes
For further information on company other taxes, consult the Revenue Administration.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
||Eastern Europe & Central Asia
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
| Income tax rate
||Progressive, from 15% to 35%
|From YTL 0 to 10,700
|From YTL 10,701 to 26,000
|From YTL 26,001 to 94,000
|Over YTL 94,000
- Allowable Deductions and Tax Credits
The set annual deduction must not go over 35% of the salary. There are other deductions which depend on each person's status (marriage, dependent children, etc.).
- Special Expatriate Tax Regime
There is no specific additional tax for expats, but an equal treatment between locals and expats.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
- Withholding Taxes
Dividends: 15%, Interest: 0% for "financial entities" / 10% (interest on loan for nonresidents), Royalties: 20%
Learn more about Taxes and Accounting in Turkey on Globaltrade.net, the Directory for International Trade Service Providers.
- National Organizations
Turkey is adapting the legal framework of industrial property to the directives of the EU. The main advances in this domain are the creation of the Turkish Patents Institute (TPI), the introduction of a regime of penal sanctions and the updating of the Law on Trademarks through a series of decrees. Since 2008, Turkish government have tried to improve intellectual property regulations. The TIP and the Turkish Ministry of Justice are working to develop a new patent law that will fully comply with EU law, but this process has taken longer than expected. Some problem remain, including the delays in the judicial and legislative processes which contribute to deficiencies in the overall Intellectual Property Rights protection.
- Regional Organizations
For the protection of patents: the European Patents Office.
- International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
National Regulation and International Agreements
- Independence of Justice
Turkish constitution guarantees independent judicial power.
- Equal Treatment of Nationals and Foreigners
Turkey is practically a constitutional State and reforms are introduced where necessary with a view to joining the European Union. Foreign nationals can in principle expect to benefit from an impartial trial in judicial matters. Corruption is a big problem and it exists in all domains. The government is introducing laws to fight it, but they are not implemented severely enough. In general, there is a certain culture of tolerance towards corruption among the population.
- The Language of Justice
- Recourse to an Interpreter
- Sources of the Law and Legal Similarities
The main source of the law is the constitution of 1982. The country's judicial system is based on a system of civil law derived from different systems in continental Europe:
- Civil and company law close to the German model
- Law of obligations inspired by the Swiss code
- Penal law inspired by the Italian Penal Code
- Administrative Law inspired by that of France
Turkey is a member of the European Court of Human Rights (ECHR).
- Checking National Laws Online
Learn more about Lawyers and Legal in Turkey on Globaltrade.net, the Directory for International Trade Service Providers.
- National Standards Organizations
Turkish Stardards Institution
- Integration in the International Standards Network
- Member of ISO (International Standard organization)
- Member of IEC (International Electrotechnical Commission)
- Classification of Standards
TSE is the national certification marking.
CE is the European certification marking.
- Online Consultation of Standards
- Certification Organizations
- General Information
CODA, Business Development Council
- Opening Hours and Days
Banks are open from 8.30 am to 12 noon and from 1.30 pm to 5.30 pm Monday to Friday.
Public administrations: from 8.30 am to 12.30 pm and from 1.30 pm to 5.00 pm Monday to Friday.
Shops: from 9.00 am to 7.30 pm from Monday to Saturday and the few shopping malls from 10.00 am to 10.00 pm, 7/7.
In some Aegean and Mediterranean regions, public administrations and some establishments close in the afternoon during the summer season. These opening hours are fixed every year by the Provincial Governors.
|New Year's Day (Yilbasi)
|Children's Day (Çocuk Bayrami)
|Youth and Sports Day (Gençlik Bayrami)
|Victory Day (Zafer Bayrami)
|Republic Day (Cumhuriyet Bayrami)
|Festival of the Sacrifice (Kurban Bayrami)
||November - December
||Change every year
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Last Updates: October 2014