Turkey, known officially as the Republic of Turkey, is a transcontinental Eurasian country. Its location at the crossroads of Europe and Asia makes Turkey a country of significant geostrategic importance. The capital of Turkey is Ankara, and the official currency is the Turkish lira (TRY). The official language of Turkey is Turkish.
The modern Republic of Turkey was established in 1923, with Mustafa Kemal Atatürk as its first president. Turkey is a democratic, secular, unitary, constitutional republic. It has become increasingly integrated with the West through membership in organisations such as the Council of Europe, North Atlantic Treaty Organization (NATO), Organisation for Economic Co-operation and Development (OECD), Organization for Security and Co-operation in Europe (OSCE), and the G-20 major economies. Turkey began full membership negotiations with the European Union (EU) in 2005, having been an associate member of the European Economic Community (EEC) since 1963 and having reached a customs union agreement in 1995.
Turkey has also fostered close cultural, political, economic, and industrial relations with the Eastern world, particularly with the Middle East and the Turkic states of Central Asia, through membership in organisations such as the Organisation of the Islamic Conference (OIC) and Economic Cooperation Organization (ECO).
The Turkish economy, the 13th largest economy in the world (in purchasing power parity [PPP] terms), has grown at quite rapid rates, except for the local 2001 crisis and the global crisis that was experienced in late 2008 and 2009. The CAGR (Compound Average Growth Rate) realised was 5% over the last decade, where Turkey grew on average by 7% between 2010 and 2017. The policy implementations and incentives in 2017 led to a 7.4% gross domestic product (GDP) growth rate, which is the highest rate within G-20 economies. With the latest figures, the size of the Turkish economy is 851 billion United States dollars (USD) as of year-end 2017, with a per capita GDP of USD 10,597.
Due to its strong fundamentals, demographic structure, and great potentials, foreign direct investment (FDI) inflows to Turkey have been continuing. Including real-estate investments, Turkey attracted USD 14 billion each year on average over the last ten years.
Turkey has been meeting (or even achieving results below) two of the Maastricht Criterion, namely public debt/GDP and budget balance/GDP, for more than five years, levels that Eurozone members could not even reach. The two weakest links are inflation and current account deficit; however, officials have been taking some measures to cope with these. The Central Bank’s tight monetary stance and some other measures (i.e. the food committee) are expected to lower inflation in the medium-term. Policy implementations to bolster savings will be beneficial for balance of payments.
Turkey's export volume was USD 157 billion in 2017, where the share of EU (the biggest export partner) exports within Turkey's total exports has been increasing due to improvement in the region. With the relatively higher oil prices and more import demand following the higher loan base, Turkey's current account deficit to GDP ratio reached 5.6% as of year-end 2017.
According to PwC estimates, Turkey is forecasted to move up the global league rankings for total GDP to 12th in 2030 and jump one more step above through 2050.
PwC Turkey supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms. PwC has operated in Turkey since 1981 and has offices in Istanbul, Ankara, Bursa, and Izmir.
We offer a wide range of products and services in all main and subsidiary sectors, especially automotive, banking, insurance and capital market, retail and consumer products, energy, utilities and mining, real estate, pharmaceuticals and healthcare, technology, information, communication, and entertainment.
Our major tax and legal services include the following:
- Tax Audits: Corporate Income Tax Certification and other Sworn-in Financial Advisory Services.
- VAT Refund, Foreign Trade, Customs, and Indirect Tax Advisory Services.
- International Tax Services.
- Tax Structuring Services.
- Tax and Customs Litigation.
- Individual Taxation Services.
- Transfer Pricing Services.
- R&D Advisory Services.
- Tax Management and Accounting Services.
- Human Resources.
- Labour Law and Social Security Advisory Services.
- Legal Services.
For up-to-date information on the most recent and significant developments in Turkish tax regulations, please refer to the tax bulletins added to our tax portal, Vergi Portali.
You can easily access all the new content added to Vergi Portali instantly via RSS. To subscribe to our RSS feed, copy the link location from the following feed and run your installed RSS news reader: