Company Tax Calculator 2025 Turkey: A Guide to Corporate Taxation

Looking for a simple explanation of corporate taxes in Turkey for 2025? This blog provides a concise yet detailed overview of corporate income tax, recent updates, and key considerations. Let’s dive into the main points with frequently asked questions to make things clear.

What is the standard corporate income tax (CIT) rate in Turkey?

In 2025, most companies in Turkey (excluding financial sector companies) are subject to a standard CIT rate of 25%. However, companies in the financial sector, such as banks and insurance firms, face a higher rate of 30%.

Are there tax benefits for companies offering shares via IPO?

Yes! Companies (excluding financial institutions) that offer at least 20% of their shares in an Initial Public Offering (IPO) on the Istanbul Stock Exchange benefit from a 2% reduction in the CIT rate. This means a reduced rate of 23% (instead of 25%) for five years, starting from the year of the IPO.

How is taxable income calculated for companies in Turkey?

Taxable income is determined by adjusting the company's net accounting profits for:

• Exemptions and deductions

• Losses carried forward (within legal limits)

This ensures that only the adjusted net profits are subject to taxation.

Does corporate tax vary for resident and non-resident entities?

Yes, Turkey applies different rules based on residency:

• Resident companies: Taxed on their worldwide income.

• Non-resident companies: Taxed only on income derived from activities within Turkey.

Are there any additional taxes for corporations?

Apart from CIT, companies may face:

• Withholding taxes on certain payments like dividends.

• Incentives or credits that reduce their tax burden if they meet specific criteria (e.g., R&D incentives).

What are the recent developments in Turkish corporate taxation?

In 2024, changes included a focus on encouraging IPOs through tax reductions. This trend is expected to continue in 2025, highlighting Turkey’s commitment to fostering public offerings and economic transparency.

Looking to Calculate Your Company’s Tax?
A reliable tax calculator tailored for Turkish corporate taxation can simplify your calculations. Ensure your company complies with the latest legislation while optimizing tax payments.

Need Help?
Contact our team for personalized tax advice and compliance support. Stay ahead of the curve with professional guidance!

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