Accounting & Tax Compliance in Turkey

How accounting and tax compliance work in Turkey

Turkey's standard corporate tax rate is 25% (30% for financial institutions), applied after deductions and exemptions — but since 1 January 2025 a parallel domestic minimum tax regime requires every corporate taxpayer to also compute liability at 10% of taxable income before most exemptions and deductions, paying whichever of the two results is larger. Unlike the OECD Pillar Two minimum tax it echoes, Turkey's version is not restricted to large multinational groups above a consolidated-revenue threshold: it applies broadly, which caps the practical effect of investment incentives, R&D deductions and other reliefs that would otherwise reduce a company's effective rate below 10%.

Operating in Turkey means tracking a domestic minimum tax floor that applies regardless of group size alongside an inflation-accounting regime whose statutory trigger has not been repealed, only suspended — a combination that keeps both the tax base and the accounting framework in flux year to year.

Rate structure and what it applies to

25% standard (30% for financial institutions) · domestic minimum tax floor of 10% of pre-exemption income applies to all corporate taxpayers (from FY2025)

• Domestic minimum tax floor — from FY2025 — every corporate taxpayer computes liability under both the standard 25% regime and a parallel 10% pre-exemption calculation, paying whichever is higher; unlike OECD Pillar Two, this is not limited to large groups
• Inflation-accounting trigger vs. suspension — — the statutory test (PPI up >10% in-year and >100% over three years) remains law, but a December 2025 act suspends the adjustment requirement for FY2025–2027 regardless of whether the test is met, with presidential power to extend it further
• Dividend withholding tax increase — — raised from 10% to 15% by Presidential Decree effective December 2024, applying to distributions to both resident and non-resident shareholders, subject to treaty relief
• Independent audit thresholds raised for 2026 — — total assets TRY 500M (up from TRY 300M), net sales revenue TRY 1B (up from TRY 600M), employee threshold unchanged at 150; 2 of 3 criteria over the last two fiscal periods trigger mandatory audit

Rates that apply in Turkey

Turkish Uniform Chart of Accounts (Tekdüzen Hesap Planı), per the Tax Procedure Law, and when an audit is required

Statutory bookkeeping in Turkey follows Turkish Uniform Chart of Accounts (Tekdüzen Hesap Planı), per the Tax Procedure Law. Independent audit mandatory for companies exceeding 2 of 3 thresholds over the last two fiscal periods: total assets TRY 500M, net sales revenue TRY 1B (both raised in a Decision published 17 March 2026, effective for periods from 1 January 2026), 150 employees (unchanged).

Annual accounts and registration

Corporate income tax return and payment due by the 30th day of the 4th month after fiscal year-end (30 April for calendar-year filers); quarterly advance tax due the 17th of the second month following each quarter.

Entity registration runs through the Trade Registry (Ticaret Sicili), filed via the MERSIS central registration system, typically taking 1–2 weeks for a Limited Şirket with complete documentation.

Frequently asked questions