Find out about some of the taxes paid by Turkish residents…
Tax liability in Turkey depends on whether the tax authorities regard a person as being a Turkish resident. Foreigners are regarded as tax residents (vergi mükellefi) if they live in Turkey for more than six months per calendar year, or if they acquire legal residence status.
Non-resident Taxes
The same tax rates are applied to Turkish and foreign people in the following circumstances:
- Non-residents in Turkey are only liable to taxation on their income earned in Turkey and are regarded as limited taxpayers.
- Residents who stay in Turkey for more than six continuous months exclusively to fulfil specific and temporary duties are also regarded as limited taxpayers.
Value Added Tax
VAT (Katma Değer Vergisi – KDV) is an indirect tax borne by the consumer, paid on imports to Turkey and goods and services in Turkey. Those engaged in taxable transactions must pay VAT, regardless of their legal status and their position with regard to other taxes.
- For further information on VAT from the Turkish Revenue Office: Click here
VAT rates
The standard rate is 18 percent, but rates vary between 1 and 18 percent.
- 8 percent VAT is applied to basic foods, medical products and books
- 1 percent VAT is applied to agricultural products, certain residential properties, newspapers and magazines
Stamp Duty
Stamp Duty (Damga Vergisi) is levied on a wide range of documents:
- Agreements
- Capital contributions
- Contracts
- Financial statements
- Leases
- Letters of credit
- Letters of guarantee
- Payrolls
Rates range from 0.15 to 0.75 percent depending on the value of the contract.
