Turkey

Corporate - Branch income

Last reviewed - 21 February 2022

Branches are taxed solely on the income derived from activities in Turkey since they are regarded as non-resident entities for Turkish tax purposes. Branch profits are subject to Turkish CIT at the rate of 23% in the year 2022 (same as subsidiaries). The rate will return to 20% in the year 2023, unless an amendment is made. 

The branch profit transferred to headquarters (i.e. upstream income repatriation) is subject to dividend withholding tax at a rate of 10%, which might be reduced if there is a bilateral tax treaty between Turkey and the country of which the principal is a resident for income tax purposes. See the Withholding taxes section for a list of countries with which Turkey has an applicable tax treaty.