In Turkey, limited companies (“Limited Şirket”) benefit from a separate legal identity and limited liability. However, they must also adhere to a range of taxation obligations.1 This article explains the primary taxes applicable to limited companies in Turkey and outlines a payment calendar to help you to track payment deadlines.
Key Taxes for Limited Companies in Turkey
1. Corporate Income Tax (Kurumlar Vergisi)
Overview:
Limited companies in Turkey must pay Corporate Income Tax on their net profits, calculated after deducting eligible business expenses from total revenue.
Tax Rate:
The standard rate is subject to periodic updates by the Turkish government. The Corporate income tax for the year 2025 is defined as 25%.
Filing & Payment:
Companies must file an annual tax return and make prepayments during the year. The final tax settlement for the previous fiscal year is typically due by 25th of April in the following year. Tax filing is done by your CPA but you are responsible for ensuring payments. Payments are only possible through national banks (Ziraat Bank, Halk Bank, Vakif Bank) or via the government portal with a credit card.
2. Value Added Tax (KDV)2
Overview:
VAT in Turkey is applied to the sale of most goods and services. As a company you collect VAT with your invoices and pay VAT for your purchases. You have to report and pay the balance to the Turkish Revenue Administration. There is no minimum threshold for VAT registering in Türkiye.
Rates:
Common VAT rates are 1% for basic food products; 10% for textiles & clothing, restaurants, hotels; and 20% for the rest of the goods and services. 3
Filing & Payment:
VAT returns are filed on a monthly basis, with the payment deadline usually falling by the 24th of the month following the taxable period. Proper management of VAT ensures that companies can reclaim input VAT on eligible business purchases. Payment is similar to corporate tax.
3. Withholding Tax (Stopaj Vergisi)
Overview:
Withholding tax is applicable on various payments, such as dividends, interest, and certain service fees. Limited companies may be required to withhold tax at source when making specific types of payments.
Application:
The withheld amounts must be remitted to the tax authority, and detailed reporting is required to ensure compliance.
Filing & Payment:
The monthly withholding tax returns are generally due by the 26th of the following month.
4. Social Security Contributions and Payroll Taxes
Overview:
For companies with employees, social security contributions and payroll taxes are an integral part of the tax obligations.
Employer Obligations:
Limited companies must deduct income tax and social security contributions from employee wages and contribute the employer’s share.
Filing & Payment:
These contributions are typically calculated on a monthly basis and must be paid to the relevant social security institution by the end of the month following the period in which they were accrued.
5. Stamp Duty (Damga Vergisi)
Overview:
Stamp duty is levied on various documents and transactions, including contracts, loan agreements, and other legal instruments.
Application:
The duty is calculated based on the transaction value or a fixed percentage as prescribed by law(e.g., contracts at 0.948%, payroll at 0.759%, fixed fees for some documents like passports).
Payment:
Stamp duty is usually paid at the time of the transaction or when the document is executed, ensuring that records are updated promptly.
Tax Payment Calendar for Limited Companies in Turkey
A clear payment calendar is crucial for maintaining compliance. While exact deadlines may vary depending on specific circumstances or any updates to Turkish tax legislation, the following schedule provides a general framework:
| Tax Type | Filing Deadline | Payment Deadline |
|---|---|---|
| VAT | 24th of the following month | 26th of the following month |
| Withholding Tax | 26th of the following month | 26th of the following month |
| Social Security Contributions | End of the following month | End of the following month |
| Corporate Income Tax Prepayments | May 17, Aug 17, Nov 17, Feb 17 | Same as filing date |
| Final Corporate Tax Settlement | April 25 (following year) | April 25 (following year) |
| Stamp Duty | Paid at the time a transaction occurs |
Note:
Because Turkish tax regulations can be subject to changes and may vary based on the specific activities and structure of a limited company, it is important to consult with a local tax professional or refer to the latest publications from the Turkish Revenue Administration (Gelir İdaresi Başkanlığı) for the most current information.
Final Thoughts
Navigating the taxation landscape in Turkey requires a clear understanding of the various tax types and their respective deadlines. For limited companies, staying compliant with Corporate Income Tax, VAT, Withholding Tax, Social Security Contributions, and Stamp Duty is crucial for smooth operations. A well-structured tax payment calendar not only helps avoid penalties but also supports efficient financial planning.
By tailoring tax strategies to the specific context of Turkish law, you can optimize your tax positions while ensuring compliance. Regular consultations with tax experts and keeping abreast of any regulatory changes will further enhance your ability to manage these obligations effectively.
Your CPA will handle all your bookkeeping and reporting. While EnableTurk isn’t a CPA firm, we can help you if you reach us to find the right CPA who meets your specific needs—whether that means affordability, thorough financial reporting, or fluency in English and German.