Tax rates in Turkey can vary depending on your income and the type of taxes you are subject to.

Income Tax in Turkey:

1. • For 2024, the income tax rates for individuals range from 15% to 40% on a progressive scale.

     • There may be additional deductions and exemptions that can affect the final amount of income tax you pay.

Value Added Tax (VAT) in Turkey:

1. • The standard VAT rate in Turkey is 20%. Some goods and services may be subject to reduced rates (1%, 10%, or 20%), while others may be exempt.

Corporate Tax Rate in Turkey:

1. • The corporate income tax rate is generally 25%, but certain industries or activities may have different rates.

Social Security Contributions in Turkey:

1. • Employees and employers both contribute to social security in Turkey. The rates can vary depending on the type of insurance and the income level.

Additionally, individual circumstances, deductions, and exemptions can also impact the actual amount of tax you pay.

The calculation of your tax liability in Turkey is contingent on several key factors:

1. Income Level: Turkey employs a progressive income tax system, wherein the applicable tax rate escalates as your income increases. Rates span from 15% for lower income brackets to 40% for higher earners.

2. Tax Residency: Your tax obligations hinge on whether you are classified as a resident or non-resident in Turkey. Different tax rules apply to each category.

3. Income Type: Various sources of income are subject to distinct tax rates in Turkey. For instance, interest income might incur withholding tax, while capital gains could be taxed under regular income tax rates.

4. Deductions and Exemptions: Depending on your specific circumstances, you may qualify for certain deductions and exemptions that can effectively lower your overall tax liability.

Understanding how these factors interact is crucial for accurate tax planning in Turkey, and seeking guidance from tax professionals or referring to the latest information from official tax authorities is advisable due to potential changes in regulations.

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