TAXATION IN TURKEY

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For international investors looking to establish businesses in nations with low corporate taxes, Turkey is a desirable location. Since 2006, Turkey's Corporate Tax Law No. 5520 has

governed these levies. The current rates are among the most affordable in the OECD region (Organization for Economic Cooperation and Development). According to its statute, this organization's goal is to advance measures that will improve people's economic and social well-being. More details about Turkey's tax laws are available from our attorneys there.

Residency is the foundation of the Turkish taxation system. Both natural people and businesses are subject to the same rule. Companies must have their registered offices in a Turkish city, whereas natural persons must reside in Turkey to be considered tax residents. Residents of Turkey will be charged an income tax on their worldwide earnings.

Only the income earned in Turkey will be taxed by the local government on non-residents. Turkey has signed agreements to prevent double taxation because it is possible that non-residents will be subject to taxes twice—once in Turkey and again in their home countries. Both the direct and indirect tax systems in Turkey are similar to those in other European nations, but in contrast to other European nations, Turkey has very competitive taxes. If they decide to invest in Turkey, foreign business owners should be aware of the tax rates, which could open up a lot of business opportunities for them.

Turkey's direct taxation system includes both individual and corporate income taxes. In Turkey, a natural person is required to pay income tax on their wages and other income, while legal entities are responsible for paying corporate tax. We can assist with doing them and supplying information about the tax system.