What is Income Tax According to the Turkish Tax Legislation?
Income tax is a type of tax levied on the income of real persons, that is, unincorporated persons who can acquire rights and exercise authority in law. Income is the net amount of earnings and revenues earned by a natural person in a calendar year.
What are the elements of income?
Income subject to income tax according to Turkish Tax Laws and this tax is being determined in the “Income Tax Law”. Accordingly, the income and revenues included in the income are as follows:
- Commercial earnings
- Agricultural earnings
- Wages
- Self-employment earnings
- Real estate capital gains
- Securities capital gains
- Other earnings and revenues.
Who are the income taxpayers? Who pays income tax?
Full taxpayers for income tax are as follows:
- Those whose domicile is in Turkey,
- Those who reside in Turkey continuously for more than six months in a calendar year,
- They are Turkish citizens who are affiliated with official offices and institutions or establishments and undertakings headquartered in Turkey and who reside in foreign countries due to the work of the aforementioned departments, establishments, establishments and undertakings.
- These taxpayers are taxed on all of their earnings and revenues in and out of Turkey.
Real persons who are not resident in Turkey are considered limited taxpayers and are taxed only on their earnings and revenues in Turkey.
What is the income tax return, where to find it, when is it filed?
Income tax return is the declaration that shows your income and is given for the realization of the tax assessment. You can access the declaration from the relevant section of the Revenue Administration Web Site.
The annual income tax return is submitted until the evening of the last day of March of the following year. If the income consists only of the commercial earnings determined in the simple method, it is given from the beginning of February to the evening of the 25th day of the following year.
When is the income tax paid due?
Income Tax is paid in two instalments. If the income does not consist only of the commercial earnings determined in the simple method, the first installment is paid until the end of March and the second installment until the end of July.
If the income consists only of the commercial gains determined in the simple method, the first installment is paid until the end of February, and the second installment is paid until the end of the month.
Where is the income tax paid to be paid?
Payments can be made through the tax office where the taxpayer’s residence is located, the tax office where the workplaces are affiliated, or through banks.
What are the income tax tariff rates for the calendar year of 2022?
| The Monetary Tax Amount | Tax Rate |
| Up to TRL 32,000 | 15% |
| TRL 4,800 for the part of TRL 32,000 out of TRL 70,000 and for exceeding amounts within this tax bracket. | 20% |
| TRL 12,400 for the part of TRL 70,000 out of TRL 170,000 and for the exceeding amounts within this bracket (For the wage earnings TRL 12,400 for the part of TRL 70,000 out of TRL 250,000) | 27% |
| TRL 39,400 for the part of TRL 170,000 out of TRL 880,000 and for the exceeding amounts within this bracket (For the wage earnings TRL 61,000 for the part of TRL 250,000 out of TRL 880,000) | 35% |
| TRL 287,900 for the part of TRL 880,000 out of more than TRL 880,000 and for the exceeding amounts (For the wage earnings TRL 281,500 for the part of TRL 880,000 out of more than TRL 880,000) | 40% |
