Tax Rates and Tax Returns

Information about tax rates, income tax deductions, tax returns and the tax year in Turkey...

Tax Rates

The rate of income tax varies with earnings from 15 to 35 percent. In 2011, gross incomes up to TRY 9,400 were taxed at 15 percent, while gross earnings in excess of TRY 53,001 were taxed at 35 percent.

Tax Returns

Tax is paid by declaration and there are three types of tax return:

  1. An annual tax return is used to declare all income earned during a calendar year. Individuals who receive a monthly wage from an employer do not need to file an annual tax return as their employer pays their taxes each month. This tax return must be submitted by 15 March of the following year. Individuals who leave Turkey permanently must submit their return 15 days before they leave. In the event of a death, a return must be submitted for the deceased within four months of the death.
  2. A withholding tax return is used to declare total taxes withheld by employers and any other people withholding tax with their net income.
  3. A special tax return is used by non-resident taxpayers to declare their earnings.

Deductions

The following are all deductible from taxable income for residents in Turkey:

  • Social security contributions
  • Unemployment insurance contributions
  • Contributions to approved pension schemes - up to ten percent of gross salary
  • Personal insurance premiums - up to five percent of gross salary

There is also a tax credit scheme for employees with families. It is possible to claim a tax refund for a proportion of a family's spending on food, education, clothing, health and residential rent. The amount that can be claimed depends on the amount spent, up to ten percent.

 

Disclaimer

Any statements concerning taxation are based upon our understanding of current taxation laws and practices in Turkey which are subject to change. While every effort has been made to offer information that is current, correct and clearly expressed the publisher is not responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. Readers are encouraged to seek professional advice concerning specific matters before making any decision.