Turkey

The standard corporate income tax rate for 2021 is 25% (increased from 22%). The rate will be reduced to 23% for 2022.

Companies (other than banks, financial institutions, insurance companies and pension funds) offering at least 20% of their shares via their first initial public offering on the Istanbul stock exchange are subject to a corporate income tax rate reduced by two percentage points. (i.e. 23% instead of 25% for 2021, 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.