Tax System in Turkey: Business Tax Guide 2026

Running a company in Turkey comes with a different set of tax questions than living there as an individual. A founder is not asking "how much income tax do I pay on my salary?" — they are asking what the company itself owes, what has to be withheld from payments the company makes, what the company owes on top of employees' wages, and what bookkeeping keeps all of that defensible during an audit. This guide covers exactly that: the obligations that attach to the business entity, not to an individual's personal VAT or income tax situation. If you are looking for the individual side — VAT on everyday purchases, personal income tax as an employee or freelancer — see our companion VAT and income tax guide. If you already understand the compliance basics and want to think about structuring, residency and timing at a strategic level, see our tax planning guide.

Key Takeaways

• Turkey's standard corporate income tax rate is 25% as of 2026, with some sectors (notably financial institutions) historically taxed at a higher rate.
• Minimum capital for a limited company (Ltd. Şti.) is TRY 50,000 and for a joint stock company (A.Ş.) is TRY 250,000, following a 2024 increase — existing companies have until the end of 2026 to comply.
• Businesses must apply withholding tax (stopaj) on certain payments they make, such as rent to individual landlords and payments to freelance professionals — rates vary by payment type.
• Employers pay social security (SGK) contributions on top of gross wages, commonly cited around 23.75% before incentives — a real cost that must be budgeted alongside net salary.
• Turkish companies must maintain statutory books and generally work with a certified accountant (SMMM); monthly VAT filing and periodic advance corporate tax are standard obligations.
• All figures here are current as of 2026 and are revised periodically — confirm with a licensed accountant before finalizing a budget or filing.

Why Business Tax Is a Different Conversation Than Personal Tax

An individual's Turkish tax exposure is largely about what they earn and spend personally. A company's tax exposure is about what it earns, what it pays out (to employees, landlords, contractors, shareholders), and what obligations attach purely because it exists as a registered legal entity — annual filings, statutory books, an accountant of record. These obligations exist regardless of whether the company is profitable yet, which surprises many first-time foreign founders who assume "no profit, no tax problem." A dormant or loss-making company still has bookkeeping, VAT filing and payroll obligations if it has any activity or employees at all.

Corporate Income Tax: The Basics

Turkish resident companies are taxed on worldwide income; non-resident companies with a Turkish branch or permanent establishment are taxed on Turkish-source income. The standard corporate income tax rate is 25% of taxable profit as of 2026. Historically, certain sectors — banks, financial leasing and factoring companies, and other financial institutions — have been subject to a higher rate than the general rate, so do not assume the standard rate applies to every business type without checking your specific sector.

Corporate tax is generally paid through a combination of:

1. Provisional (advance) corporate tax — paid quarterly during the year based on interim profit, credited against the final annual liability.
2. Annual corporate tax return — reconciling the year's actual profit and settling any balance due, filed and paid according to the statutory calendar (typically in the months following the fiscal year-end for most companies using a calendar fiscal year).

Choosing a Legal Structure and Meeting Minimum Capital

Most foreign-owned businesses in Turkey are structured as a limited liability company (Limited Şirket, Ltd. Şti.) or a joint stock company (Anonim Şirket, A.Ş.). Following a capital increase that took effect on 1 January 2024, the minimum capital requirements are:

Structure	Minimum capital (from 2024)	Notes
Limited Şirket (Ltd. Şti.)	TRY 50,000	Most common for SMEs and foreign-owned single-shareholder companies
Anonim Şirket (A.Ş.)	TRY 250,000	Suited to larger operations, easier share transfer, can go public
Non-public A.Ş. under the registered capital system	TRY 500,000 initial capital	Allows capital increases without a full general assembly amendment each time

Companies that existed before the increase were given until 31 December 2026 to bring their registered capital up to the new minimums, after which non-compliant companies risk being treated as dissolved. If your company was formed before 2024 and has not reviewed its capital position, this is worth checking with your accountant well before the deadline — not in December 2026.

Withholding Tax on Business Payments

Beyond its own corporate tax bill, a Turkish company acts as a withholding agent on certain payments it makes to others, deducting tax at source and remitting it to the tax office. Common triggers include:

• Rent paid to individual (non-corporate) landlords for business premises.
• Payments to freelance professionals (serbest meslek) such as independent consultants, lawyers or accountants issuing a freelance receipt rather than a corporate invoice.
• Dividend distributions to shareholders, both resident and non-resident (a separate withholding regime from operating withholding — see our tax planning guide for the strategic angle on dividend timing).
• Certain payments to non-resident companies, which can also be affected by an applicable double taxation treaty.

Exact withholding rates vary by payment category and are periodically adjusted — do not assume a rate you saw for one type of payment applies to another. Your accountant should be applying the correct rate on each payment type as part of routine bookkeeping.

Employer Obligations: SGK and Payroll

Hiring even one employee brings Turkey's social security (SGK) system into play. On top of gross salary, the employer pays its own share of social security contributions — commonly cited as roughly 23.75% of gross salary before incentives (made up of contributions across pension/disability/death insurance, general health insurance and short-term insurance branches, plus unemployment insurance), though eligible employers can see this reduced through government incentive programs, and the earnings ceiling subject to contributions is itself periodically adjusted. This employer-side cost is separate from what is withheld from the employee's own paycheck, and it is a real, ongoing cost of headcount that founders sometimes underestimate when budgeting a hire.

Obligation	Who pays	Frequency
Employee income tax withholding	Withheld by employer from salary	Monthly, via payroll
Employee SGK contribution	Withheld by employer from salary	Monthly
Employer SGK contribution	Paid by employer, on top of gross salary	Monthly
Stamp duty on wages	Withheld by employer	Monthly, alongside payroll

Accounting, Bookkeeping and the Tax Calendar

Turkish companies are required to maintain statutory commercial books (defter) in accordance with the Tax Procedure Law and Turkish Commercial Code, and in practice this is handled by a certified public accountant (Serbest Muhasebeci Mali Müşavir, SMMM). Larger companies, or those needing certain certifications (such as full corporate tax exemption certifications or specific incentive applications), may also require a sworn financial advisor (Yeminli Mali Müşavir, YMM), whose signature carries additional legal weight with tax authorities.

A simplified annual rhythm looks like this:

1. Monthly: VAT return and payment; withholding tax (stopaj) return and payment; SGK payroll declarations and payment.
2. Quarterly: Provisional (advance) corporate tax return and payment based on interim profit.
3. Annually: Corporate income tax return reconciling full-year profit, filed and paid according to the statutory calendar; statutory financial statements finalized.

Missing any of these triggers late-filing and late-payment penalties plus accruing default interest, and a pattern of missed filings tends to draw closer scrutiny from the tax office over time.

Common Mistakes

1. Assuming a loss-making company has no filing obligations. VAT, payroll and bookkeeping obligations generally continue regardless of profitability.
2. Underbudgeting the true cost of an employee. Founders often price a hire at gross salary alone and forget the employer-side SGK contribution stacked on top.
3. Applying the wrong withholding rate on freelancer or rental payments. Different payment categories carry different withholding treatment — this is not a "one rate fits all" system.
4. Ignoring the 2024 minimum capital increase. Companies formed under the old TRY 10,000 / TRY 50,000 minimums need to confirm their current compliance position well before the 2026 deadline.
5. Treating company tax questions like personal tax questions. The rules, forms and deadlines are different — mixing up personal and corporate obligations is a common source of missed filings for first-time foreign founders.
6. Not engaging an accountant from day one. Waiting until the first VAT deadline is looming to find an SMMM is a common and avoidable source of stress and penalties.

How FTurkey Helps

FTurkey connects foreign founders and business owners with licensed Turkish accountants and legal advisors who handle company formation, bookkeeping setup, payroll registration and ongoing filings, so you are not learning the tax calendar the hard way. Our tax advisory services and commercial law consulting team can help you choose the right structure before you incorporate, and our tax consulting and planning service supports ongoing compliance once you are operating. If you are weighing how to hold Turkish investments alongside a company — individually, through the company, or through a separate holding structure — see our investment consulting and portfolio management service, and for cross-border payment questions, our foreign exchange and cryptocurrency consulting service. Contact us to get started.

This article is general information, not individualized tax or legal advice. Turkish corporate tax rates, minimum capital requirements, SGK contribution rates and filing deadlines change periodically — confirm current figures with a certified accountant (SMMM/YMM) or the Revenue Administration (Gelir İdaresi Başkanlığı) before acting.