Types of taxes in Turkey

There are many types of taxes in Turkey, although the Turkish tax law places 3 main classifications on it, but it is rightly one of the countries where you find different names for these taxes, and if you do not witness a complaint from citizens in this regard, as the government always rejects them In the form of services that made Turkey one of the most promising economies in Europe, in addition to being a country that attracts foreign investments, tourism and encourages people to travel to its lands for study and work, and many people want to hold its citizenship, so let us know in detail about the types of taxes in Turkey.

income taxes

It is the first classification that we can put when talking about the types of taxes in Turkey, and this type of taxes is divided into two parts, the following are mentioned:-

1/ Tax on individual income:-

The responsible authority calculates the annual income that the individual achieves during one year, bearing in mind that this includes the total sum of his net income, which covers the salary he gets from his job, the profits he earns from his agricultural land or his shop, and the income he earns from movable and immovable services. As well as his income from the personal services that he performs, and the tax rate may in the end be between 15% to 35% of the income, although there are two classifications under this item related to the individual income tax that must be taken into account, namely:-

- People who live in Turkey for more than 6 continuous months in one year, and they pay taxes on the money they earn in Turkey and abroad as well.

- If you spend in Turkey for less than 6 continuous months in one year, the state has nothing to do with the money you earn outside Turkey, and taxes are imposed on your profits inside Turkey only.

2/ Tax on corporate income:-

هي ذلك النوع من الضرائب الذي يُطبق على الكيانات القانونية مثل الشركات صاحبة رأس المال، أو المنتمية لنوع الجمعية التعاونية، وأي منشأة اقتصادية ترجع ملكيتها إلى جمعية ما أو مؤسسة حتى لو كانت منشأة عامة، ويدخل في الحسبة أيضًا المشاريع الاقتصادية.

وتكون نوعية الضريبة المفروضة على الشركات خاصعة لتصنيفين، فلو كانت الشركة تحت راية المقيمين في تركيا، فإنها تدفع الضرائب عن الأرباح التي تحققها خلال العام الواحد داخل وخارج تركيا، وفي حالة وقوع الشركة تحت راية غير المقيمين في تركيا، تُفرض عليها الضرائب على مقدار عملها في الاقتصاد التركي فقط.

الضرائب المفروضة على النفقات في تركيا

في قانون الضرائب التركي سنجدها التصنيف الثاني الذي تتفرع منه انواع الضرائب في تركيا، ويتفرع من هذا التصنيف عدة بنود فرعية، سنوردها في الأسطر التالية.

1/ ضريبة القيمة المضافة:-

This tax is subject to all the outputs of industry and trade that you find around you in Turkish society, and it also covers self-employment and the field of import, and does not constitute a crisis for the Turkish people because its rate starts from only 1% and does not exceed the barrier of 18%, and the field of oil exploration as well as transit used for Shipping, and the services you obtain in sea, air and land ports, and in cases of supplying equipment necessary for industry in the form of investment certificates, and goods that are prepared for export as a kind of support for the dissemination of Turkish goods around the world, as well as transit transport and manufacturing not provided in free zones.

2/ Special consumption tax:-

It means the taxes imposed on various types of vehicles such as cars, planes, motorcycles and yachts, and also covers the luxury type of recreational products, and also we are talking here about cigarettes and all tobacco and alcohol products of all kinds, and includes under its banner petroleum products of all kinds and their derivatives.

3/ Taxes on banking and insurance transactions:

By our talk here, we mean the taxes imposed on banks of all kinds and the transactions that occur in them, meaning that for example, you pay 1% tax on every bank deposit transaction you make, and 5% on every loan you take from the bank.

The tax is also imposed on companies operating in the field of insurance, and the percentage of taxes paid to cover this item is only 5%, on insurance transactions of all kinds.

4/ Stamp tax or paper fee:-

This tax is imposed on papers and contracts when establishing a new company, financial and accounting data related to payrolls paid to employees and workers, as well as letters of guarantee, insurance letters and notifications using e-mail, so that you do not worry, dear reader, when you read the article and know that it is related to wages, the value of this tax is less than 1%.

Wealth Taxes in Turkey

As I have already told you, dear reader, that the types of taxes in Turkey have three classifications, the first of which is on the individual and the second on expenses, and we have talked about them previously, and the third of them is on wealth and we are going to talk about it now.

Real estate taxes are the first thing that falls under wealth taxes in Turkey, and they cover buildings, apartments and real estate tax loans, and the rate is less than 1%, and to preserve the immovable cultural heritage represented in antique buildings, the Turkish government imposes a tax of up to 10% on it, and covers Wealth taxes also include automobiles, as well as when distributing inheritances and gifts, and in the latter case ranges between 1% and 30% of the value of the inheritance or gift.

tax incentive system

We cannot talk about the types of taxes in Turkey, and we ignore the tax incentive system there, which was specifically designed; To encourage investments inside Turkey and motivate business owners to reduce the import of vital goods, so that the sovereignty of the Turkish product becomes within the state. Under this system, all local investors get equal opportunities to work in their home country.

Perhaps the main objectives of the tax incentives system in Turkey are the following:-

1/ Encouraging local investors to innovate in the field of technology.

2/ Supporting aggregate activities in Turkey.

3/ Ensuring that the deficit in all current accounts is reduced, so that the local investor has sufficient liquidity to work.

4/ Increasing the volume of investments in the less developed Turkish regions and states, which the local investor is more familiar with and their conditions.

The size of the incentive granted depends on the area to be supported, its level and its economic potential. We can arrange the areas that enjoy this support as follows:-

1/ Mining and searching for various types of oil and its derivatives.

2/ Investments that occur in the field of tourism, and the development of tourist and archaeological areas and cultural heritage.

3/ All investments in the automotive, aviation and defense industries, as well as those that support the Turkish dream of conquering space one day.

4/ Investments in the field of maritime transport and railway development.

5 / Investments that occur in the field of vehicle spare parts of all kinds.

6/ It also includes investments that inject funds into the education sector and kindergarten stages.

7/ It also supports all renewable energy production projects, as it is the future in that field.

8/ Production of materials that are manufactured using carbon fibres, as well as the manufacture of those fibres.

9/ This clause in the Turkish Tax Code also covers those investments aimed at producing flat aluminum, and the industries in which this product is involved.