Inflation accounting is suspended for 2025-2027, but the statutory PPI trigger underneath it remains. What would reactivate it, and how to prepare for that.
- Dividend withholding tax increase
- Independent audit thresholds raised for 2026
- Is inflation accounting mandatory in Turkey right now?
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.
What a company pays in Turkey. Every figure below is published on the Turkey country page.
| Turkey | |
|---|---|
| Official language | Turkish |
| Legal forms | Limited Şirket (LLC) · Anonim Şirket (AŞ, joint-stock company) |
| 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) |
What makes it complex in Turkey
- 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.
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.
Dividend withholding tax increase is one of the points HTLC Network handles for clients operating in Turkey, within a single engagement that covers every other country they operate in — executed locally, governed centrally.
In Turkey the scope is: 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.
See Accounting & Tax Compliance in Turkey for the full scope, or the Turkey country page for the statutory framework across every service.
Figures as published on the HTLC Network country pages, reviewed September 2026 and collected from public sources. They are not a substitute for advice on a specific case and should be verified before being relied on.