For every international entrepreneur establishing a business in Türkiye, understanding the country’s tax system is an essential step toward sustainable growth. Türkiye’s tax framework is modern, transparent, and closely aligned with global standards, but its local procedures can be unfamiliar to new investors.
At Synergia, we guide foreign founders through every stage of business setup, from incorporation to post-registration tax compliance. This overview explains the main types of taxation in Türkiye: Value Added Tax (VAT), Corporate Income Tax (CIT), and Withholding Tax (WHT). It also outlines what international companies should know before starting operations.
Value Added Tax (VAT) in Türkiye
The Value Added Tax (Katma Değer Vergisi or KDV) is one of the most common taxes applied to goods and services in Türkiye. The standard VAT rate is 20%, while reduced rates of 10% and 1% apply to specific sectors such as food, healthcare, and real estate.
All companies that sell goods or provide services in Türkiye must register for VAT. Once registered, businesses are required to issue VAT-compliant invoices, file monthly VAT returns, and pay the due amount to the Tax Office.
Exporters and companies providing services abroad can often apply for VAT exemption or refund, which helps improve cash flow for international operations. At Synergia, we coordinate this process through our network of local accounting partners to ensure filings are accurate and on time.
Corporate Income Tax (CIT)
Corporate tax applies to both resident and non-resident companies operating in Türkiye. As of 2025, the general corporate income tax rate is 25%, though this may vary depending on the sector and fiscal adjustments each year.
Resident companies are taxed on their worldwide income, while non-resident companies are taxed only on income generated in Türkiye. Every company must file an annual tax return, usually by the end of April for the previous fiscal year, and make quarterly advance tax payments.
For foreign shareholders, Türkiye allows profit repatriation after taxes have been settled. Dividends paid to foreign entities may be subject to withholding tax, but double taxation agreements (DTAs) can reduce or eliminate this obligation depending on the investor’s home country.
As Synergia, we help founders set up compliant accounting structures from the beginning, ensuring that all financial activities meet Turkish tax and reporting standards.
Withholding Tax (WHT)
Withholding tax applies when certain payments are made to individuals or non-resident entities. These include dividends, interest, royalties, rent, and professional service fees.
The standard withholding rates are as follows:
Türkiye has signed double taxation agreements with more than 80 countries, which helps foreign investors avoid being taxed twice on the same income. The applicable rate depends on the treaty between Türkiye and the investor’s home jurisdiction.
We work closely with tax experts who specialize in cross-border transactions to ensure that our clients fully benefit from these agreements.
At Synergia, we simplify complex regulatory requirements for global entrepreneurs. We provide guidance throughout the tax registration and reporting process, ensuring each company remains compliant with local and international obligations.
Our network of professionals also supports tax compliance for companies registered abroad through Synergia’s international establishment services in the USA, Poland, Estonia, France, KKTC, the UK, and UAE. This ensures a seamless tax and reporting structure between Türkiye and other jurisdictions.
Türkiye’s tax system is designed to encourage investment and business stability. Once entrepreneurs understand the framework and meet their obligations, they can focus on growth without administrative concerns.
As Synergia, we make this process transparent and manageable. Whether you are preparing your first VAT declaration, filing annual corporate tax, or managing cross-border transactions, our team ensures full compliance while helping your company thrive in Türkiye’s competitive market.
