Turkey

In Turkey, companies (other than those in the financial sector) are subject to a standard corporate income tax rate of 20%. However the rate is temporarily increased to 25% for the income generated in 2021 and to 23% for the income generated in 2022. The applicable rate as of 2023 will return to 20%, unless the legislation is amended. For financial sector companies the corporate income tax rate is 25%. 

Companies (other than banks, financial institutions, insurance companies, and pension funds) offering at least 20% of their shares via their first initial public offering (IPO) on the Istanbul stock exchange are subject to a CIT rate reduced by two percentage points (i.e. 21% instead of 23% for 2022) for five years starting from the year when the IPO is made.

The taxable income of a company is computed based on its net accounting profits after adjustment for exemptions and deductions and including prior-year losses carried forward, to a limited extent.

According to Turkish tax legislation, income taxation differs significantly based on the taxpayer's place of residence. Resident entities are subject to tax on their worldwide income, whereas non-resident entities are taxed solely on the income derived from activities in Turkey.

Local income taxes

There are no provincial or municipal taxes on corporate income in Turkey.