Free invoice generator and tax tools for Türkiye

A small business in Turkey deals mainly with the Revenue Administration (GİB), which collects income tax, corporate tax, KDV and stamp duty, and with the Social Security Institution (SGK), which collects insurance premiums. Individual traders and professionals pay gelir vergisi on a progressive tariff in Income Tax Law article 103. For 2026 it runs from 15% on the first 190.000 TL to 40% above 5.300.000 TL, with the 20%, 27% and 35% steps at 400.000 TL, 1.000.000 TL (1.500.000 TL for wages) and 5.300.000 TL. The smallest traders may be taxed under basit usul instead.

Companies pay kurumlar vergisi at 25% under Corporate Tax Law article 32. Since Law 7582, a corporation that holds an industrial registry certificate and actually produces, or that farms, pays 12.5% on the profit from that production. Anyone who pays wages, or pays self-employed professionals as a company, public body or book-keeping trader, must withhold income tax at source under article 94 of the Income Tax Law and hand it over to GİB. Stamp duty (damga vergisi) is charged on signed contracts and similar papers that state a sum, at 9.48 per thousand for a contract and 1.89 per thousand for a lease.

The latest reform read for this page is Law 7582, published in the Resmî Gazete on 4 June 2026 (no. 33270). Besides the 12.5% production rate, it added a 20-year income tax exemption for foreign-source income of people who become Turkish tax residents after three years with no Turkish residence or tax liability, applying from 1 January 2026.

Basit usul is the simplified way of taxing very small traders, set out in Income Tax Law articles 46 to 48. A trader qualifies for 2026 if they work in the business personally, are not taxed on actual accounts, pay annual rent for the workplace of no more than 99.000 TL in a metropolitan municipality or 60.000 TL elsewhere, and stay under the turnover limits: purchases of 1.200.000 TL or sales of 1.900.000 TL for resellers and processors, or gross receipts of 600.000 TL for other work, with 1.200.000 TL as the combined limit. Profit is simply receipts less expenses and the cost of goods sold, taken from invoices and receipts, with no full books. Since Law 7338 of 14 October 2021, repeated article 20/A exempts profit assessed this way from income tax. Losing a condition moves the trader to the actual-basis system from the next calendar year.