All persons living in Turkey, whether of Turkish citizenship or otherwise,
are subject to taxation on income. Certain categories of foreigners are taxed
only on income earned in Turkey - specifically, foreign business
representatives, consultants, scientists, government officials, press
correspondents, and others who do not intend to become permanent residents
regardless of length of stay.
A foreigner is considered a tax resident if he/she resides in Turkey for
more than six months per year and has a legal residence in the country. There
are no special tax provisions for expatriates. Pensions and social security
payments from abroad may be considered taxable income.
Income tax is imposed at progressive rates and can reach up to 55%. The
basic corporate tax is 25%; however, a withholding tax of 10% for public
companies and 20% for private companies is levied. There is also a surcharge of
10% assessed bringing the total effective corporate tax rate to 45–55%,
Married couples are required to file individual tax returns
on their incomes. Deductions and allowances are not mutually transferable if
one of the incomes does not meet the requirements for allowance utilization.
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