Types of Taxes in Turkey

Anyone who lives in Turkey should be fully aware of its tax issues and familiarize themselves with accurate and detailed information on this subject due to the significance of it if you want to reside, invest, or engage in any other economic activities. It is also a good idea to be familiar with the tax laws in Turkey in order to know what you own and what you owe.

Turkish tax incentives:

Turkey started implementing a system of tax incentives at the beginning of 2012 to promote both domestic and international investment. The fact that Turkish tax incentives for investments are open to both domestic and foreign investors makes them special.

Turkey has four distinct tax incentive programs, including: 

• The global order
• The local network
• The system is complex.
• The tactical framework

Turkey's tax rates are competitive:

Turkey's taxes are competitive with those of several first- and second-world nations as well as many European nations. Turkey's tax rates are among the competitive pricing that attract investment at the level of the Organization for Economic Cooperation and Development (OECD).

Turkey also has clear and open tax regulations, which increases your sense of security and comfort throughout legal processes. Most taxes in Turkey are reasonable, realistic, and compliant with global tax norms.

Turkey's real estate taxes are occasionally subject to legislation and revisions that, in an effort to stimulate the economy, lower the values of various taxes either permanently or temporarily.

Are there any additional taxes in Turkey for foreigners?

One of the rumors you might occasionally hear is this one. The truth is that you will have to pay taxes for every economic activity you engage in, anywhere in the world. Turkey stands out because foreigners are not subject to any additional taxes.

While under Turkish legislation, foreigners are permitted to start businesses, purchase real estate, and engage in any other commercial activity since they will be required to pay the same taxes as Turkish citizens who engage in the same activity.

These expenses are not considered taxes in Turkey; rather, they are needs that you have that vary depending on your capacity to perform your duties independently or the nature of your investment. Foreigners may incur minor expenses in Turkey for the translation of some documents, escorting a translator, or the requirement to employ Turks within your institutions.

Turkish taxation types:

In Turkey, there are three main categories of taxes, and each category has a number of subcategories.

Income Taxes

The components and sources of income as well as the net income value are the two major areas of attention for income taxes.

Turkey divides taxes into two primary categories when referring to income:

• Individual income tax: The amount of earnings and returns that an individual receives is determined on a net basis within one year.
• Corporate Income Tax: If the income is derived from companies or establishments in Turkey, the taxes are levied on the legal entities that represent the company.

Tax expenses

VAT: Value-Added Tax

Turkish law mandates the payment of value-added tax on all delivery of products and services, as well as on commercial, industrial, agricultural, and autonomous artisanal goods and services.

SCT Special Consumption Tax

There are four primary categories of goods that are subject to SCT, each with a separate tax rate and category of items.

These categories are:

• Petroleum products (lubricating oils, solvents and their derivatives, natural gas, and oil derivatives)
• All types of vehicles automobiles, motorbikes, helicopters, boats, and aircraft.
• Alcoholic drinks and tobacco products are entertainment goods.
• The SCT is only paid once.

Taxes on wealth and real estate

There are three different wealth taxes in Turkey:

• taxes on real estate ownership
• auto taxes
• Gift and inheritance taxes

One of the topics that foreigners, particularly Arabs, in Turkey are most curious about and questioned about is taxes. We have covered the many forms of taxes in Turkey in precise and thorough depth in this post, thus we have included all the information about them. sides of it.