Taxation of Sports Players in Turkey: What You Need to Know
Taxation of Sports Players in Turkey: What You Need to Know
Table of contents
- Taxation of Sports Players in Turkey: What You Need to Know
- Why Are Tax Authorities Requesting Explanations from Athletes?
- 7 Key Taxation Points Every Athlete in Turkey Should Know
- 1. Do I Need to Establish a Company as an Athlete? Should I Issue Invoices?
- 2. When Should I File My Tax Return and When Should I Pay?
- 3. Can I Reduce the Amount of Tax I Need to Pay?
- 4. What Expenses Can I Deduct to Lower My Taxes?
- 5. How Do I File My Tax Return as an Athlete?
- 6. What If I Did Nothing Last Year and Earned Over ₺1.9 Million in 2023?
- 7. What Should I Do If I Receive an Explanation Request Letter from the Tax Office?
- Stay Informed, Stay Compliant
Taxation of Sports Players in Turkey: What You Need to Know
Why Are Athletes Facing Tax Penalties? What Needs to Be Done?
As a professional athlete, understanding your tax obligations in Turkey is crucial to avoid penalties. Recently, tax authorities have been more proactive in seeking explanations from athletes about their incomes, and this trend is raising concerns. This blog will break down the essential points you need to know to navigate this complex area and ensure you are fully compliant with your tax responsibilities.
Why Are Tax Authorities Requesting Explanations from Athletes?
One common reason tax offices request explanations from athletes is due to inconsistencies or omissions in their income declarations. If you've received a letter requesting clarification, it’s essential to understand what’s expected of you and how to respond to avoid further complications.
7 Key Taxation Points Every Athlete in Turkey Should Know
To help you stay compliant and avoid tax penalties, here are seven essential points for athletes regarding their tax obligations in Turkey:
1. Do I Need to Establish a Company as an Athlete? Should I Issue Invoices?
No, you do not need to establish a company or issue invoices. Unlike regular businesses, athletes are taxed differently. You only need to declare your income once a year, typically in March, similar to how rental income is declared.
2. When Should I File My Tax Return and When Should I Pay?
If your earnings exceed ₺3,000,000 in 2024, you must file a tax return in March 2025. The taxes withheld by your club on your behalf will be deducted, and you will pay the remaining amount in two installments in March and July 2025.
3. Can I Reduce the Amount of Tax I Need to Pay?
Yes, you can reduce your taxable income by declaring your expenses along with your earnings. It’s crucial to include all eligible expenses, as this can significantly lower the taxes you owe.
4. What Expenses Can I Deduct to Lower My Taxes?
You can deduct several types of expenses, including:
Education expenses for yourself, your spouse, and children (e.g., private school fees)
Health expenses
Donations and contributions
Life insurance premiums
Any costs directly related to your professional sporting activities
5. How Do I File My Tax Return as an Athlete?
The process is simplified for athletes. You simply provide your income and expense information to a certified public accountant (CPA), and they handle the calculations and submissions for you. Payments can be made online through government websites or using credit cards.
6. What If I Did Nothing Last Year and Earned Over ₺1.9 Million in 2023?
If you haven’t filed a tax return for 2023 and earned over ₺1.9 million, you should act quickly. Filing before the tax office contacts you can save you from losing certain benefits and incurring penalties. The sooner you act, the better.
7. What Should I Do If I Receive an Explanation Request Letter from the Tax Office?
If you receive a letter requesting an explanation, it means the tax office has a record of the amounts credited to your account. You must submit a backdated tax return that matches these records. Filing with regret (known as "pişmanlık") allows you to pay within 15 days, minimizing additional costs. It’s important to meet the deadline to avoid further complications.
Stay Informed, Stay Compliant
We regularly share important tax deadlines, updates, and guides with our clients through newsletters and e-books. If you’d like to join our mailing list, feel free to reach out to us at info@ozmconsultancy.com or subscribe via the form at the end of this page.
Özmen Mali Müşavirlik
info@ozmconsultancy.com