TROperating in Turkey
Payroll, accounting, employment, immigration, entity setup, and corporate compliance managed locally through a single international coordination model.
Request a country assessmentThe regulatory landscape
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%.
The second structural feature companies must track is inflation accounting. Turkish tax law requires inflation-adjusted financial statements whenever the producer price index rises more than 10% in the current year and more than 100% cumulatively over the preceding three years — a statutory trigger written into the Tax Procedure Law, not a discretionary policy choice. In December 2025, Turkey's parliament passed a law suspending the inflation-adjustment requirement for the 2025, 2026 and 2027 fiscal years regardless of whether the underlying PPI trigger is met, with presidential authority to extend the suspension a further three years — meaning companies that built inflation-adjustment systems during the high-inflation years since 2023 must now operate without them, while the statutory trigger itself remains on the books and could reactivate once the suspension lapses.
Official language
Turkish
Legal forms
Limited Şirket (LLC) · Anonim Şirket (AŞ, joint-stock company)
Corporate tax rate
25% standard (30% for financial institutions) · domestic minimum tax floor of 10% of pre-exemption income applies to all corporate taxpayers (from FY2025)
Currency
TRY (Turkish lira)
Employer social security
~21.75% of gross salary (SGK: 12% old-age/disability/survivors + 7.5% general health + 2.25% short-term insurance); Treasury incentive reduces the manufacturing-sector rate by up to 5 points through end-2026
Dividend tax
15% withholding tax on dividend distributions (raised from 10% by Presidential Decree, effective December 2024), reduced under applicable double tax treaties
Minimum share capital
Limited Şirket: TRY 50,000 · Anonim Şirket: TRY 250,000 (at least 25% blocked in a Turkish bank pre-registration)
VAT
20% general rate · 10% reduced (food, medicine) · 1% further reduced (basic commodities)
Integrated services in Turkey
Each service is delivered as part of an integrated service model, coordinated across functions under a single point of accountability. Clients engage one team, not a coordination layer between independent providers.
Accounting & Tax Compliance
Statutory bookkeeping under the Turkish Uniform Chart of Accounts, VAT returns across Turkey's three active rates, and corporate tax filings tracking both the standard 25% calculation and the 10% domestic minimum tax floor.
Explore Accounting & Tax CompliancePayroll & Workforce Management
Full-cycle Turkish payroll including SGK employer contributions, the 2026 minimum wage, and employment terms under Turkish labour law.
Explore Payroll & Workforce ManagementCompany Formation & Entity Setup
Limited Şirket and Anonim Şirket incorporation, Trade Registry (MERSIS) filing, and post-formation compliance setup.
Explore Company Formation & Entity SetupWorkforce Mobility
Work permit coordination for foreign partners, managers and key staff relocating to Turkey, filed jointly by employer and employee.
Explore Workforce MobilityClient profiles in Turkey
HR & Employment Advisory
Multinationals restructuring Turkish operations to manage domestic minimum tax exposure
Company Formation & Entity Setup
Companies entering Turkey for the first time, requiring entity setup and initial compliance infrastructure
Workforce Mobility
Companies with R&D or investment incentives that no longer reduce effective tax below the 10% minimum floor
Payroll & Workforce Management
Companies already operating in Turkey consolidating fragmented HR, payroll and accounting providers under a single governance layer
At the center of your HR operations
What clients say about our services in Turkey
Our investment incentives had always brought our effective tax rate below 10%, so the new minimum tax changed our year-end number even though nothing else about the business had changed. Understanding the parallel calculation in advance let us plan for it in our forecast instead of explaining a variance after the fact.
Finance Director, Manufacturing Group — Turkish OperationsInsights on Turkey
Selected articles on regulatory developments and operational frameworks relevant to companies in Turkey.
A parallel minimum tax calculation sets a floor under the effective rate, capping what investment and R&D incentives can actually deliver. How to model the benefit net of the floor.
Read articleInflation accounting is suspended for 2025-2027, but the statutory PPI trigger underneath it remains. What would reactivate it, and how to prepare for that.
Read articleThe withholding rate rose from 10% to 15%. How that changes distribution planning, and what treaty relief remains available.
Read articleFrequently asked questions
Questions raised most often by companies entering or operating in Turkey.
What services does HTLC Network provide in Turkey?
HTLC Network provides Payroll & Workforce Management, Accounting & Tax Compliance, HR & Employment Advisory, Company Formation & Entity Setup, and Workforce Mobility services in Turkey through a coordinated international service model.
Can I hire employees in Turkey without opening a Turkish company?
Depending on the business model this may be possible, but a company should first review payroll obligations, tax registrations, employment law requirements and permanent establishment exposure.
Why do international companies choose Turkey?
Turkey offers access to both European and Middle Eastern markets and is often used for manufacturing, logistics, commercial operations and regional expansion.
What payroll obligations apply in Turkey?
An employer generally administers salary payments, income tax withholding, social security contributions, employee registration and statutory reporting obligations.
How does Turkey's domestic minimum tax work?
Since 1 January 2025, every corporate taxpayer computes liability under two parallel methods — the standard 25% rate after exemptions and deductions, and 10% of income before most exemptions and deductions — and pays whichever produces the higher amount. Unlike OECD Pillar Two, it is not limited to large multinational groups.
Is inflation accounting mandatory in Turkey right now?
No. A December 2025 law suspends the inflation-adjustment requirement for fiscal years 2025 through 2027, regardless of whether the underlying statutory trigger (PPI up more than 10% in-year and 100% over three years) is met. The trigger itself has not been repealed, and the president can extend the suspension further.
What is the dividend withholding tax rate?
15%, applying to distributions to both resident and non-resident shareholders, raised from 10% by Presidential Decree effective December 2024. Lower rates may apply under Turkey's double tax treaties, subject to eligibility conditions.
What's the minimum capital to form a Limited Şirket?
TRY 50,000, which can be paid in over 24 months following incorporation. An Anonim Şirket (joint-stock company) requires TRY 250,000, with at least 25% blocked in a Turkish bank account before registration completes.
Talk to a Turkey expert
For companies structuring a market entry or consolidating an existing Turkish operation under a single governance model.