Turkey

Corporate - Taxes on corporate income

Last reviewed - 11 September 2025

In Turkey, companies (other than those in the financial sector) are subject to a standard CIT rate of 25%. For financial sector companies, the CIT rate is 30%.

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.

Resident entities are subject to tax on their worldwide income, whereas non-resident entities are taxed only on their Turkish-sourced income. 

Minimum CIT rule

With effect from 1 January 2025, a domestic minimum tax regime is applicable that aims to ensure the corporate tax is not less than 10% of corporate income before certain exemptions and deductions. Under the new rule, the corporate taxpayers will compute their tax liability under both the standard tax regime (i.e. 25% tax on taxable income after deductions and exemptions) and a parallel regime (i.e. 10% tax on taxable income before certain deductions and exemptions). The larger amount will then be payable. 

Certain exemption items are excluded from the base for the 10% tax (In other words, these specific exemptions will not be added to the base for the 10% tax). These exemptions include:

  • Participation exemption for dividends from Turkish resident entities
  • Exemption for emission premiums
  • Exemption provided under the Law on Technology Development Zone
  • Allowances granted for qualifying R&D and design activities

Global minimum tax 

Turkey introduced implementation of Pillar Two rules ensuring a global minimum level of taxation for multinational groups. The legislation generally follows the OECD Model rules. Specifically the following elements of the global minimum tax are legislated:

  • The Income Inclusion Rule (IIR), which applies for tax years starting on or after 1 January 2024. This rule applies to Turkish multinationals or Turkish entities that are subsidiaries of a foreign-headquartered multinational located in a jurisdiction that has not implemented this rule. 
  • The Undertaxed Profits Rule (UTPR), which applies for tax years starting on or after 1 January 2025. Where no IRR applies, the UTPR will apply to foreign nationals that operate in Turkey.

In addition, a 15% domestic minimum tax (QDMTT) applies to tax years starting on or after 1 January 2024 for Turkey operations of multinationals and will ensure that Turkey retains taxing rights over undertaxed Turkish profits. 

These rules apply to companies located in Turkey that are part of a multinational group whose consolidated turnover is EUR 750 million or more over at least two of the four preceding fiscal years. 

A top-up tax is due when, in a fiscal year, the effective tax rate (corresponding to the sum of the adjusted covered taxes of the constituent entities located in the jurisdiction / sum of the qualified income of these entities) is lower than 15% in a jurisdiction. Turkey implements the temporary safe harbour rules. 

Turkish entities have to file GloBE Information Return (GIR) within 15 months (18 months the first time) following the end of the fiscal year. Accordingly, submission and payment of GIR for year 2024 is due (in line with the OECD timeline) in June 2026. 

For more detailed information and the most recent updates, please visit PwC's Pillar Two Country Tracker. 

Local income taxes

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