Company Formation
What taxes does a Turkish company pay?
Corporate tax is 25% on net profit (2025–2026). VAT is 20% on standard-rated sales. Payroll taxes (income tax + social security) apply to employees. Companies exporting qualifying services abroad may deduct 100% of those earnings under Article 10/1(ğ) of the Corporate Tax Law — the rate rose from 80% to 100% by Presidential Decree No. 11257, applicable to tax periods beginning on or after 1 January 2026 — though the 10% domestic minimum corporate tax (Article 32/C) limits how far that deduction reduces the final bill.