Turkey » Taxes

Real Estate Tax	Corporate Tax	VAT	EST	Personal Income Tax

Real Estate Tax

Annual Real Estate Tax rates for uncultivated land, cultivated land, non-residence-purpose buildings, and residential buildings are 0.1%, 0.3%, 0.2%, and %0.1 respectively. Tax is calculated on the basis of the declared value of the asset which could not be less than a threshold determined by tax authorities. Tax payments are made in two equal installments in the period March-to-May and November each year and those are collected by the local governments. The tax base is annually updated by a coefficient determined by the Ministry of Finance taking into account the inflation rate.

Corporate Tax

Corporate entities have to pay a tax of 30% of their previous year profits.

VAT

General VAT rate is 18%. However, some goods and services are taxed at either 1% or 8%. Commercial delivery of a residential property with net area up to 150 m2 is subject to a VAT of 1% whereas commercial delivery of those with more than 150 m2 is subject to a VAT of 18%.

Environmental Services Tax

Local water suppliers charge EST of YTL 0.12 per one m3 of water used to residences. It ranges between YTL 12 and YTL 1,400 per year for the other types of buildings. The rates for metropolitan cities, on the other hand, are 25% higher the normal rates. These figures are updated annually. ESTs are reflected to the water invoices.

Personal Income Tax

Personal income tax is updated by a Council of Ministers for every calendar year. Main personal income items which are taxed are commercial income, agricultural income, wages, self-employment revenues, rent, interest and other incomes.