Taxpayers in the Scope
Corporate Tax Law defines below entities as subject to Corporate Income Tax in Turkey;
- Capital Stock Companies
- Public Economic Enterprises
- Economic Enterprises of Associations or Foundations
- Joint ventures
Scope of the Tax
Corporate Tax is calculated over the pure corporate income after deducting business related expenses from the revenue of the corporate.
Standard Corporate Income Tax rate is 20% in Turkey. However, with a recent decision of the parliament, this rate is raised to 22% for Fiscal Years of 2018, 2019 and 2020.
Period of Taxation
Definitive determination of a corporate income is done yearly. However, authority requests temporary calculations in each quarter to collect advance corporate income tax. When the final calculation is made in the last quarter, advance paid taxes are deducted and final corporate income tax is paid.