💼 Taxes for Limited Companies in Turkey + Real Example 💸

If you’re planning to register a company in Turkey, understanding its tax structure is crucial. Below are the main taxes to consider after company formation, followed by a real-world example of profits and taxes.

📊 Main Taxes After Company Registration

1️⃣ Corporate Tax (Kurumlar Vergisi)

• 💰 Rate: 25% on net profits

2️⃣ VAT (KDV – Value Added Tax)

• 📥 On purchases: 20% VAT payable

• 📤 On sales: 20% VAT collected

• 🧾 Payable to tax office: Output VAT – Input VAT

• 📉 With a tax consultant, the rate may be reduced to 8% or even 1%

3️⃣ Withholding Tax (Stopaj)

• 🏢 25% of your office rent is paid as tax

• ❌ No tax if using a virtual office

4️⃣ Bağ-Kur (Social Security for Self-Employed)

• Covers retirement, health, and disability

• 🔒 Minimum monthly payment: 6,500 TRY

• 📅 Subject to change after 2025

📈 Real Example: Import and Sales Profit Calculation

Step 1: Import Costs

• Product cost: $30,000

• Customs (2%): $600

• ✅ Total import: $30,600

Step 2: Additional Costs

• Shipping: $3,000

• Business costs: $5,000

• ✅ Total extras: $8,000

Step 3: Total Cost

• $30,600 + $8,000 = $38,600

Step 4: Sales Revenue

• Total sales: $40,000

Step 5: VAT Calculation

• VAT on purchase: $6,000

• VAT on sales: $8,000

• ✅ VAT payable to tax office: $2,000

Step 6: Gross Profit

• $40,000 – $38,600 = $1,400

Step 7: Corporate Tax

• 25% of $1,400 = $350

Step 8: Net Profit

• After-tax profit: $1,050

• ✅ VAT to be paid: $2,000

🧮 Final Summary