# Turkey Corporate Tax Rate 2027: Rates, Incentives and Tax Calculation

# Turkey Corporate Tax Rate 2027: Rates, Incentives and Tax Calculation

**The standard corporate income tax rate in Turkey is expected to remain 25% in 2027 unless new legislation is enacted before or during the year. A higher 30% rate currently applies to banks, financial institutions, insurance companies, pension companies and certain public-private partnership projects. However, the effective tax rate may be lower for exporters, manufacturers, service exporters, technology companies and businesses operating under investment incentive schemes. Turkey’s final 2027 corporate tax rules should therefore be checked again when the relevant legislation is published.**

This guide explains Turkey’s expected corporate tax rate for 2027, how taxable profit is calculated, which companies may qualify for reduced rates or exemptions, and the additional tax costs foreign investors should consider.

> **Last updated:** 16 August 2026 **2027 status:** The final 2027 corporate tax legislation has not yet been published.

## What is the corporate tax rate in Turkey in 2027?

Based on the legislation in force as of August 2026, the expected standard corporate tax rate for 2027 is **25%**.

The current rate structure is:

| Company or income category | Current rate or treatment |
| --- | --- |
| Ordinary Turkish companies | 25% |
| Banks and specified financial institutions | 30% |
| Insurance, reinsurance and pension companies | 30% |
| Certain build-operate-transfer and public-private partnership projects | 30% |
| Qualifying export income | Reduced rate may apply |
| Qualifying service-export income | Up to 100% deduction may apply |
| Technology Development Zone income | Exemption may apply |
| R&D and design activities | Deduction or incentive may apply |
| Investment incentive certificate income | Reduced corporate tax may apply |
| Domestic minimum corporate tax | Generally 10%, subject to statutory adjustments |
| Large multinational groups | 15% global minimum tax rules may apply |

Turkey’s Revenue Administration confirms that the standard corporate tax rate for the 2026 accounting period is 25%, while the specified financial and PPP entities are subject to 30%. Unless the law changes, these rates are expected to continue in 2027. [Turkish Revenue Administration – Corporate Tax Rates](https://www.gib.gov.tr/vergi-konulari/2_isletme_ve_girisimci/19_kurumlar_vergisinin_beyani/19)

## Has Turkey officially announced the 2027 corporate tax rate?

**No separate 2027 corporate tax rate has yet been officially announced.**

As of 16 August 2026:

*   The standard statutory rate is 25%.
    
*   The higher rate for specified industries is 30%.
    
*   No general law has yet established a different standard rate exclusively for 2027.
    
*   New incentives or sector-specific changes may still be introduced before 2027.
    

For that reason, articles claiming that a completely new 2027 rate has already been finalised should be treated cautiously.

The safest statement is:

> Unless new legislation is enacted, Turkey’s standard corporate income tax rate is expected to be 25% in 2027.

## Is corporate tax calculated on revenue or profit?

**Corporate tax in Turkey is calculated on taxable profit, not on total revenue.**

The simplified calculation is:

**Revenue – deductible expenses – applicable exemptions and deductions = corporate tax base**

Corporate tax is then calculated by applying the relevant rate to the tax base.

### Simple corporate tax example for 2027

Assume that a Turkish limited company has the following results:

*   Annual revenue: TRY 10,000,000
    
*   Tax-deductible operating expenses: TRY 6,000,000
    
*   Taxable corporate profit: TRY 4,000,000
    
*   Corporate tax rate: 25%
    

The basic calculation would be:

**TRY 4,000,000 × 25% = TRY 1,000,000 corporate tax**

The company would retain TRY 3,000,000 after corporate tax, before any dividend distribution.

This is a simplified example. Non-deductible expenses, previous-year losses, exemptions, inflation accounting, related-party transactions and minimum tax rules may change the result.

## What is the effective corporate tax rate in Turkey?

The statutory rate and the effective rate are not always the same.

The statutory rate may be 25%, but a company’s effective tax rate can be lower or higher depending on:

*   Export incentives
    
*   Service-export deductions
    
*   Technology Development Zone exemptions
    
*   R&D and design deductions
    
*   Investment incentive certificates
    
*   Participation exemptions
    
*   Foreign tax credits
    
*   Carried-forward losses
    
*   Non-deductible expenses
    
*   Financing expense restrictions
    
*   Transfer pricing adjustments
    
*   Domestic minimum corporate tax
    
*   Dividend withholding tax
    

A company with significant qualifying export or technology income may pay considerably less than 25%. Conversely, a company with substantial non-deductible expenses may face a higher effective burden in relation to its accounting profit.

## Which companies pay the 30% corporate tax rate?

Under the current rules, the 30% corporate tax rate applies to specified entities, including:

*   Banks
    
*   Financial leasing companies
    
*   Factoring companies
    
*   Financing companies
    
*   Electronic payment institutions
    
*   Electronic money institutions
    
*   Authorised foreign exchange offices
    
*   Asset management companies
    
*   Capital market institutions
    
*   Insurance companies
    
*   Reinsurance companies
    
*   Pension companies
    
*   Companies operating specified build-operate-transfer projects
    
*   Companies that are parties to specified healthcare public-private partnership projects
    

The Turkish Revenue Administration’s current corporate tax guidance explains both the 25% and 30% rates. [Revenue Administration – Corporate Tax Rate Guidance](https://aksaray.gib.gov.tr/duyuru-arsivi/gib-duyurulari/17485_kurumlar_vergisinde_oran_uygulamalari_rehberi_yayimlandi)

## Do exporters pay a lower corporate tax rate in Turkey?

**Qualifying exporters may benefit from a reduced corporate tax treatment for profits attributable to export activities.**

The reduction applies to the qualifying export profit, not necessarily to the company’s entire profit.

For example, if a company conducts both domestic sales and exports, it may be necessary to separate:

*   Revenue from domestic sales
    
*   Revenue from export sales
    
*   Direct export-related expenses
    
*   Shared operating expenses
    
*   Profit attributable to exports
    
*   Profit attributable to domestic operations
    

The calculation should therefore be based on the profit generated from qualifying export transactions rather than total export turnover.

Turkey’s official investment guide confirms that qualifying exporters can benefit from reduced corporate tax treatment on export income. [Investment Office of the Presidency – Turkey Tax Guide](https://www.invest.gov.tr/en/InvestmentGuide/Pages/tax-guide.aspx)

Additional export tax reductions have also been discussed as part of Turkey’s 2026 investment and reform programme. However, their exact application to the 2027 accounting period should be confirmed through enacted legislation rather than announcements alone.

## What will the corporate tax rate for exporters be in 2027?

The exact 2027 rate will depend on:

*   Whether the company exports goods or services
    
*   Whether it manufactures the exported goods
    
*   Whether the income qualifies under the relevant legislation
    
*   Whether a rate reduction or profit deduction applies
    
*   How much of the company’s profit is attributable to exports
    
*   Whether the domestic minimum corporate tax limits the benefit
    
*   Whether further legislation is enacted before 2027
    

It would therefore be misleading to state that every Turkish exporter will pay a single fixed reduced rate in 2027.

A company should calculate the tax separately for:

1.  Domestic trading income
    
2.  Ordinary export income
    
3.  Manufacturing and export income
    
4.  Qualifying service-export income
    
5.  Exempt technology or R&D income
    
6.  Other investment-incentive income
    

## Can service-export companies pay zero corporate tax in Turkey in 2027?

**A Turkish company providing certain qualifying services exclusively or primarily to foreign customers may be able to deduct up to 100% of the qualifying net income from its corporate tax base, subject to statutory conditions.**

Potentially qualifying services include:

*   Software development
    
*   Design
    
*   Data processing
    
*   Data analysis
    
*   Engineering
    
*   Accounting services
    
*   Call centre services
    
*   Product testing
    
*   Certification services
    
*   Data storage
    
*   Certain professional training services
    
*   Other specifically listed cross-border services
    

The scope and deduction rate were amended by Presidential Decision No. 11257, published on 30 April 2026. [Turkish Revenue Administration – Presidential Decision No. 11257](https://www.gib.gov.tr/duyuru-arsivi/guncel/17846_11257_sayili_cumhurbaskani_karari_resmi-gazetede-yayimlandi)

### Basic service-export conditions

The precise conditions depend on the type of service, but generally include:

*   The service provider must be established and taxable in Turkey.
    
*   The customer must be located outside Turkey.
    
*   The invoice must be issued to the foreign customer.
    
*   The service must fall within a qualifying category.
    
*   The relevant benefit or use of the service must be connected with the foreign customer.
    
*   The income and related expenses must be separately traceable.
    
*   Contracts, invoices, bank receipts and service records must support the transaction.
    
*   The foreign customer must not merely be an intermediary for a Turkish beneficiary.
    

### Service-export example

Assume a Turkish software company has:

*   Qualifying foreign software revenue: TRY 8,000,000
    
*   Expenses attributable to that income: TRY 3,000,000
    
*   Net qualifying service-export profit: TRY 5,000,000
    

If the entire TRY 5,000,000 qualifies for the applicable 100% deduction, the ordinary corporate tax base relating to that income may be reduced to zero.

However, the result must also be tested under:

*   Domestic minimum corporate tax rules
    
*   Related-party transaction rules
    
*   Transfer pricing rules
    
*   Expense allocation requirements
    
*   Documentation conditions
    
*   Any legislative amendments effective in 2027
    

Therefore, “foreign invoice equals zero tax” is not a safe assumption.

## Is every payment received from abroad tax-free?

**No. Receiving money from abroad does not automatically create a corporate tax exemption.**

A payment from a foreign customer may still be fully taxable if:

*   The service is not included in a qualifying category.
    
*   The actual beneficiary is in Turkey.
    
*   The invoice is issued to a foreign intermediary, but the service is used in Turkey.
    
*   The contract does not match the actual activity.
    
*   The company cannot separate qualifying and non-qualifying income.
    
*   The payment represents a royalty, commission or trading income rather than a qualifying service.
    
*   The statutory documentation requirements are not met.
    

The commercial reality of the transaction is more important than the location of the bank account.

## What is Turkey’s domestic minimum corporate tax?

Turkey applies a **domestic minimum corporate tax**, generally calculated at 10% of corporate income before certain exemptions and deductions.

The simplified principle is:

> A company cannot necessarily reduce its final corporate tax to zero merely by applying deductions and exemptions.

However, the minimum tax calculation is technical. Certain statutory exemptions and deductions remain outside or are adjusted in the minimum tax base, while others may be restricted.

The Turkish Corporate Tax Law provides that corporate tax calculated under the ordinary and incentive provisions generally cannot be less than 10% of corporate income before specified exemptions and deductions, subject to the exclusions listed in the law. [Turkish Revenue Administration – Domestic Minimum Corporate Tax Provision](https://usak.gib.gov.tr/mevzuat/kanun/435)

This rule is particularly important for companies using:

*   Service-export deductions
    
*   Participation exemptions
    
*   Investment incentive certificates
    
*   Technology exemptions
    
*   R&D deductions
    
*   Free-zone exemptions
    
*   Sector-specific tax benefits
    

A separate minimum-tax calculation should be prepared before promising an investor a zero effective tax rate.

## Does the 10% minimum corporate tax mean every company must pay at least 10%?

No.

The 10% rule is not simply applied to accounting profit in every case. The calculation contains statutory exclusions, additions and adjustments.

A company may still have no corporate tax payable where, for example:

*   It has a genuine commercial loss.
    
*   Its income falls within an exemption excluded from the minimum tax base.
    
*   It has not generated a minimum-tax base after the statutory calculations.
    
*   A specific legislative exception applies.
    

Therefore, the domestic minimum corporate tax should not be described as a universal 10% turnover tax.

## Does Turkey apply a 15% global minimum corporate tax?

Yes. Turkey has introduced global and domestic minimum top-up tax rules for large multinational groups.

These rules generally concern multinational enterprise groups whose consolidated annual revenue exceeds **EUR 750 million** in at least two of the four preceding accounting periods. [Turkish Revenue Administration – Global Minimum Tax](https://ebeyan.gib.gov.tr/beyan-doc/docs/kuresel-atv/genel-aciklamalar)

The global minimum tax is not normally relevant to an ordinary Turkish SME or a newly established foreign-owned limited company.

It is primarily relevant to:

*   Large multinational groups
    
*   Turkish parent companies with foreign subsidiaries
    
*   Turkish subsidiaries of major international groups
    
*   Groups subject to OECD Pillar Two reporting
    

The 15% global minimum tax should not be confused with Turkey’s ordinary 25% corporate tax rate or its 10% domestic minimum corporate tax calculation.

## Are Turkish limited companies subject to corporate tax?

Yes. A Turkish limited liability company is a corporate taxpayer.

The company pays corporate tax on its taxable profit. The shareholders do not directly pay personal income tax on the company’s ordinary annual profit merely because the company earned it.

Additional shareholder-level taxation may arise when:

*   Dividends are distributed
    
*   Money is withdrawn without proper documentation
    
*   Shareholder loans are not on arm’s-length terms
    
*   The company provides personal benefits to shareholders
    
*   The shareholder sells the company shares
    

## Are Turkish joint-stock companies subject to the same rate?

Generally, yes.

Both Turkish limited liability companies and joint-stock companies are normally subject to the same standard corporate tax rate.

The choice between an LTD and a JSC does not, by itself, change the general corporate tax rate.

The differences between the two structures concern matters such as:

*   Minimum capital
    
*   Corporate governance
    
*   Share transfers
    
*   Investment and fundraising
    
*   Management structure
    
*   Public offering potential
    
*   Liability and representation
    
*   Certain share-sale tax advantages
    

## Do foreign-owned companies pay a higher corporate tax rate?

**No. A Turkish company does not pay a higher corporate tax rate merely because its shareholders are foreign.**

A Turkish company with foreign shareholders is generally subject to the same corporate tax rules as a Turkish-owned company.

The nationality of the shareholder may nevertheless affect:

*   Dividend withholding tax
    
*   Double tax treaty benefits
    
*   Related-party transactions
    
*   Transfer pricing
    
*   Financing structure
    
*   Beneficial ownership analysis
    
*   Controlled foreign company rules in the shareholder’s country
    
*   Reporting obligations in the shareholder’s country
    

## How are branches of foreign companies taxed in Turkey?

A Turkish branch of a foreign company is generally taxed on income attributable to its activities and permanent establishment in Turkey.

A branch may be subject to:

*   Corporate income tax
    
*   VAT
    
*   Withholding obligations
    
*   Payroll taxes
    
*   Social security obligations
    
*   Branch profit remittance withholding
    
*   Transfer pricing documentation
    
*   Permanent establishment allocation rules
    

The tax cost of a branch should therefore be compared with establishing a Turkish subsidiary.

## Is there a separate tax when profits are distributed?

Yes. Corporate tax and dividend withholding tax are separate.

The company first pays corporate tax on its taxable profit. A second tax may arise when the after-tax profit is distributed to shareholders.

### Simplified example

Assume:

*   Profit before corporate tax: TRY 4,000,000
    
*   Corporate tax at 25%: TRY 1,000,000
    
*   Profit after corporate tax: TRY 3,000,000
    

If the entire TRY 3,000,000 is distributed, dividend withholding tax may apply.

The final withholding rate can depend on:

*   Whether the shareholder is an individual or company
    
*   Whether the shareholder is resident in Turkey
    
*   The shareholder’s country of residence
    
*   Whether a double tax treaty applies
    
*   Whether the shareholder is the beneficial owner
    
*   The percentage and duration of the shareholding
    
*   Domestic participation exemption rules
    

Therefore, the total tax burden should not be calculated by looking only at the 25% corporate tax rate.

## How is the combined company and dividend tax burden calculated?

If a company pays 25% corporate tax and distributes all remaining profit, the combined effective burden is not calculated by simply adding the corporate tax and dividend withholding rates.

For example, assuming a hypothetical 15% dividend withholding rate:

1.  Initial taxable profit: TRY 100
    
2.  Corporate tax at 25%: TRY 25
    
3.  Remaining distributable profit: TRY 75
    
4.  Dividend withholding at 15% of TRY 75: TRY 11.25
    
5.  Net amount paid to shareholder: TRY 63.75
    

The combined tax burden in this simplified example would be:

**TRY 25 + TRY 11.25 = TRY 36.25**

The effective combined burden would therefore be 36.25%, not 40%.

A tax treaty may reduce the dividend withholding component.

## Can a double tax treaty reduce Turkey’s corporate tax rate?

Normally, a double tax treaty does not reduce the ordinary corporate tax rate imposed on a Turkish-resident company.

Tax treaties mainly:

*   Allocate taxing rights between countries
    
*   Reduce withholding taxes
    
*   Prevent the same income from being taxed twice
    
*   Provide foreign tax credit mechanisms
    
*   Define permanent establishments
    
*   Regulate associated enterprises
    
*   Provide mutual agreement procedures
    

For example, a treaty may reduce the Turkish withholding tax on a dividend paid to a foreign shareholder. It generally does not convert the Turkish company’s ordinary 25% corporate tax rate into a lower treaty rate.

## Can foreign taxes be credited against Turkish corporate tax?

A Turkish-resident company may be able to credit qualifying foreign taxes against Turkish corporate tax, subject to statutory and treaty conditions.

The credit is generally limited to the Turkish tax attributable to the relevant foreign income.

The company should retain:

*   Foreign tax assessments
    
*   Withholding certificates
    
*   Payment receipts
    
*   Tax authority documents
    
*   Contracts
    
*   Invoices
    
*   Certified translations where required
    
*   Documents proving the nature and source of the income
    

A foreign payment described as “tax” is not automatically creditable in Turkey.

## How are corporate losses treated in Turkey?

Tax losses may generally be carried forward for up to five years, subject to legal conditions.

A loss must normally be:

*   Properly reported in the relevant tax return
    
*   Supported by statutory books and documents
    
*   Separately tracked by year
    
*   Used within the statutory carry-forward period
    

Loss carryback is generally not available, except for certain special situations such as liquidation.

Changes in ownership do not automatically eliminate losses, but mergers, demergers, transfers and restructurings require additional analysis.

## Which business expenses are deductible?

An expense is generally deductible where it is:

*   Incurred for generating or maintaining business income
    
*   Properly documented
    
*   Recorded in the statutory books
    
*   Related to the company’s activity
    
*   Not prohibited by tax law
    
*   Consistent with the arm’s-length principle
    

Typical deductible expenses may include:

*   Employee salaries
    
*   Employer social security contributions
    
*   Office rent
    
*   Utilities
    
*   Professional fees
    
*   Software subscriptions
    
*   Advertising and marketing
    
*   Business travel
    
*   Depreciation
    
*   Raw materials
    
*   Logistics
    
*   Business insurance
    
*   Interest, subject to restrictions
    
*   Research and development expenses
    

## Which expenses are not deductible?

Common non-deductible items may include:

*   Corporate income tax itself
    
*   Tax penalties and late-payment charges
    
*   Expenses without valid supporting documents
    
*   Personal expenses of shareholders
    
*   Disguised profit distributions
    
*   Non-arm’s-length related-party payments
    
*   Legally restricted vehicle expenses
    
*   Excess financing expenses subject to limitation
    
*   Certain reserves not recognised by tax law
    
*   Payments connected with criminal conduct
    
*   Donations exceeding statutory limits
    

Non-deductible expenses increase the taxable base even if they are recorded as expenses for accounting purposes.

## What is provisional corporate tax?

Turkish companies generally calculate and pay provisional corporate tax during the year.

Provisional tax is an advance payment of the annual corporate tax liability. It is later credited against the corporate tax calculated in the annual return.

It is not normally an additional tax on top of the annual corporate tax.

### Basic example

Suppose the company pays TRY 800,000 in provisional corporate tax during the year.

Its final annual corporate tax is TRY 1,000,000.

The remaining amount payable with the annual return would generally be:

**TRY 1,000,000 – TRY 800,000 = TRY 200,000**

If provisional tax exceeds the final liability, the excess may be credited or refunded subject to the applicable procedures.

## When is the 2027 corporate tax return filed?

For a company using the calendar year, the annual corporate tax return for income earned between 1 January and 31 December 2027 would normally be filed in April 2028.

The tax is generally paid within the annual return period.

The Turkish Revenue Administration confirms that calendar-year corporate taxpayers currently file the annual return during April of the following year. [Turkish Revenue Administration – Corporate Tax Filing](https://www.gib.gov.tr/duyuru-arsivi/mevzuat/17490_kurumlar_vergisi_beyan_donemi_icin_son_gun_bugun)

Companies with a special accounting period follow a different filing timetable.

Exact 2028 filing deadlines should be confirmed when the official tax calendar is published.

## Is VAT included in the 25% corporate tax rate?

No. VAT and corporate income tax are separate taxes.

*   Corporate tax is generally calculated on taxable company profit.
    
*   VAT is generally calculated on taxable supplies of goods and services.
    
*   Dividend withholding applies when profits are distributed.
    
*   Payroll taxes and social security contributions apply to employees.
    
*   Stamp tax may apply to certain documents and returns.
    
*   Withholding tax may apply to rent, professional services and cross-border payments.
    

A company with a 25% corporate tax rate may therefore have several other tax obligations.

## What are the main VAT rates in Turkey?

The VAT rate depends on the goods or services supplied. The general rate and reduced rates may apply depending on the transaction.

Exports of goods are generally VAT-exempt with a refund mechanism, subject to documentation.

Services supplied to foreign customers may qualify as an export of services for VAT purposes if the statutory conditions are satisfied. Merely issuing an invoice to a foreign company is not sufficient if the service is actually used in Turkey.

## Can technology companies be exempt from corporate tax?

Technology companies operating in a Turkish Technology Development Zone may benefit from corporate income tax exemptions for qualifying activities.

Potentially qualifying income may include income derived from:

*   Software
    
*   R&D activities
    
*   Design activities
    
*   Certain technology projects
    
*   Specified intellectual property
    

However, establishing a company in a technopark does not exempt all company income.

Companies must separate:

*   Qualifying technopark income
    
*   Non-qualifying commercial income
    
*   Income generated outside the zone
    
*   Interest and financing income
    
*   Royalty income
    
*   Related project expenses
    
*   Shared personnel and overhead costs
    

The current statutory duration of the technopark tax regime and its application in 2027 should be reviewed based on the relevant project and zone approval.

## Can manufacturers benefit from reduced corporate tax?

Manufacturing companies may benefit from different incentives, including:

*   Corporate tax rate reductions
    
*   Investment incentive certificates
    
*   Reduced corporate tax under investment contribution rules
    
*   VAT exemptions
    
*   Customs duty exemptions
    
*   Employer social security incentives
    
*   Interest or profit-share support
    
*   Regional investment incentives
    
*   Export-related tax benefits
    
*   R&D and design incentives
    

The effective rate depends on the investment location, industry, incentive certificate and amount of eligible expenditure.

## What is reduced corporate tax under an investment incentive certificate?

A company making an eligible investment may receive a tax contribution amount under an investment incentive certificate.

The company may then apply a reduced corporate tax rate until the permitted tax benefit reaches the investment contribution amount.

The result depends on:

*   Total qualified investment expenditure
    
*   Investment contribution rate
    
*   Applicable reduced tax rate
    
*   Investment region
    
*   Industry
    
*   Date of the incentive certificate
    
*   Whether the investment is complete or ongoing
    
*   Income generated from the investment
    
*   Available use of the contribution against other company income
    

This incentive does not necessarily mean that all company income is permanently taxed at a reduced rate.

## Can companies in Turkey pay 0% corporate tax?

Yes, in limited circumstances.

A zero or near-zero effective corporate tax result may be possible for income covered by:

*   A full statutory exemption
    
*   A qualifying 100% service-export deduction
    
*   Technology Development Zone exemptions
    
*   Free-zone exemptions
    
*   Foreign branch or construction exemptions
    
*   Participation exemptions
    
*   Investment incentive mechanisms
    
*   Carried-forward losses
    

However, zero tax should be confirmed after applying:

*   Domestic minimum corporate tax rules
    
*   Non-deductible expense adjustments
    
*   Expense allocation rules
    
*   Documentation requirements
    
*   Transfer pricing rules
    
*   Anti-abuse provisions
    

A company should not be promised a zero tax result solely because it has foreign customers.

## What are the main tax incentives available in Turkey in 2027?

Depending on the enacted legislation and the company’s activity, the main incentives may include:

*   Export corporate tax reductions
    
*   Service-export profit deductions
    
*   Technology Development Zone exemptions
    
*   R&D and design deductions
    
*   Investment incentive certificates
    
*   Free-zone incentives
    
*   Istanbul Financial Center incentives
    
*   Transit trade incentives
    
*   Participation exemptions
    
*   Foreign construction and technical service exemptions
    
*   Cash capital increase deduction
    
*   Employment and social security incentives
    
*   VAT exemptions for exports and qualifying investments
    

The best incentive should normally be selected before contracts, invoices and operational arrangements are finalised.

## Does transfer pricing affect corporate tax?

Yes.

Transactions between related parties must generally comply with the arm’s-length principle.

Related-party transactions may include:

*   Management fees
    
*   Software licences
    
*   Royalties
    
*   Intercompany loans
    
*   Interest
    
*   Service charges
    
*   Cost-sharing arrangements
    
*   Purchases and sales of goods
    
*   Transfer of intellectual property
    
*   Shareholder current accounts
    

If the price is not consistent with market conditions, the tax authority may adjust the company’s taxable profit and impose tax, interest and penalties.

Foreign-owned companies should prepare their intercompany agreements and pricing methodology before transactions begin.

## Can a Turkish company pay management fees to its foreign parent?

It may do so if:

*   A genuine service is provided.
    
*   The Turkish company benefits from the service.
    
*   The fee is commercially reasonable.
    
*   The amount is arm’s length.
    
*   The service is documented.
    
*   The appropriate invoice is issued.
    
*   VAT and reverse-charge VAT are considered.
    
*   Corporate withholding tax is analysed.
    
*   Treaty provisions are reviewed.
    
*   The payment is not a disguised profit distribution.
    

A contract and bank payment alone do not prove that a deductible service was received.

## Can interest paid to a foreign shareholder be deducted?

Potentially, but several rules must be reviewed:

*   Thin capitalisation
    
*   Transfer pricing
    
*   Arm’s-length interest rate
    
*   Financing expense restrictions
    
*   Corporate withholding tax
    
*   VAT treatment
    
*   Double tax treaty provisions
    
*   Currency and foreign exchange rules
    
*   Purpose and use of the loan
    

Excessive shareholder debt may cause part of the interest and foreign exchange loss to be treated as a disguised profit distribution.

## What records must a Turkish company maintain?

Depending on its legal form and size, a Turkish company may need to maintain:

*   Journal ledger
    
*   General ledger
    
*   Inventory ledger
    
*   Share ledger
    
*   General assembly meeting book
    
*   Managers’ or board resolution book
    
*   E-ledger records
    
*   E-invoices and e-archive invoices
    
*   Payroll records
    
*   Bank statements
    
*   Contracts
    
*   Expense documents
    
*   Customs and export documents
    
*   Transfer pricing documentation
    
*   Beneficial ownership information
    

Foreign accounting records do not replace Turkish statutory bookkeeping obligations.

## Frequently Asked Questions

### What is Turkey’s corporate tax rate for 2027?

The standard rate is expected to remain 25% unless new legislation changes it.

### Is Turkey’s 2027 corporate tax rate officially final?

Not yet. The legislation should be checked again before and during 2027.

### Do banks pay 25% corporate tax?

Specified banks, financial institutions, insurance companies and certain PPP project companies currently pay 30%.

### Is the 25% rate applied to turnover?

No. It is generally applied to taxable corporate profit.

### Do foreign-owned companies pay more tax?

No. Foreign ownership alone does not increase the standard corporate tax rate.

### Can an exporter pay less than 25%?

Yes. Reduced rate treatment may apply to profit attributable to qualifying exports.

### Can a service exporter pay zero corporate tax?

A 100% deduction may be available for qualifying service-export income, but all statutory conditions and minimum tax rules must be reviewed.

### Does a company pay tax if it makes a loss?

A company with a genuine tax loss generally does not pay ordinary corporate tax on that loss. Filing and other compliance obligations continue.

### Is VAT included in corporate tax?

No. VAT is a separate transaction tax.

### Is dividend tax included in the 25% rate?

No. Dividend withholding may arise when after-tax profits are distributed.

### When is the 2027 corporate tax return due?

For calendar-year companies, it would generally be filed in April 2028.

### Can previous-year losses be deducted?

Generally, properly reported tax losses may be carried forward for up to five years, subject to legal conditions.

### Is there a minimum corporate tax in Turkey?

Yes. A domestic minimum corporate tax calculation generally applies at 10%, subject to statutory exclusions and adjustments.

### Does the 15% global minimum tax apply to small companies?

Normally no. It mainly applies to multinational groups exceeding the EUR 750 million consolidated revenue threshold.

## Turkey Corporate Tax Checklist for 2027

Before calculating the 2027 tax burden, a company should answer the following questions:

1.  Is the company tax-resident in Turkey?
    
2.  Does the company have a calendar or special accounting period?
    
3.  Is the standard 25% or special 30% rate applicable?
    
4.  How much taxable profit is expected?
    
5.  Which expenses are tax-deductible?
    
6.  Are there non-deductible expenses?
    
7.  Does the company earn export income?
    
8.  Does it provide qualifying services to foreign customers?
    
9.  Does it operate in a technopark or free zone?
    
10.  Does it hold an investment incentive certificate?
     
11.  Does the domestic minimum corporate tax apply?
     
12.  Is the company part of a multinational group?
     
13.  Are related-party transactions priced at arm’s length?
     
14.  Will profits be distributed to shareholders?
     
15.  Can a double tax treaty reduce dividend withholding?
     
16.  Are foreign tax credits available?
     
17.  Have qualifying and non-qualifying income been separately recorded?
     
18.  Have all contracts and supporting documents been prepared correctly?
     

## Is Turkey a competitive jurisdiction for companies in 2027?

Turkey may be particularly competitive for businesses involved in:

*   Software exports
    
*   Engineering services
    
*   Data processing
    
*   Professional services
    
*   Manufacturing and exports
    
*   R&D and product development
    
*   International trade
    
*   Technology investments
    
*   Regional headquarters
    
*   Financial services in the Istanbul Financial Center
    

The headline corporate tax rate is only one part of the decision.

Foreign investors should also evaluate:

*   Effective tax rate after incentives
    
*   Dividend withholding tax
    
*   VAT treatment
    
*   Payroll costs
    
*   Social security contributions
    
*   Customs duties
    
*   Transfer pricing
    
*   Foreign exchange exposure
    
*   Accounting compliance
    
*   Work and residence permits
    
*   Banking requirements
    
*   Exit and profit repatriation
    

## Conclusion

**Turkey’s standard corporate tax rate is expected to be 25% in 2027, while specified financial and public-private partnership entities are currently subject to 30%.**

However, the actual tax burden can differ significantly from the headline rate.

Exporters, software developers, service exporters, manufacturers, technology companies and incentivised investors may qualify for reduced rates, deductions or exemptions. At the same time, domestic minimum tax, dividend withholding, transfer pricing and non-deductible expenses may increase the final burden.

For a reliable calculation, the company’s revenue model, customer location, contracts, expenses, ownership structure and profit-distribution policy must be reviewed together.

## Corporate Tax and Company Formation Services in Turkey

OZM Consultancy assists foreign investors and internationally active businesses with:

*   Turkish company formation
    
*   Corporate tax planning
    
*   Corporate tax compliance
    
*   Monthly bookkeeping
    
*   VAT and withholding tax returns
    
*   Service-export tax incentives
    
*   Export and manufacturing incentives
    
*   Technology Development Zone applications
    
*   R&D and investment incentives
    
*   Transfer pricing
    
*   Payroll and social security
    
*   Dividend and profit-repatriation planning
    
*   Double tax treaty analysis
    
*   Branch and subsidiary comparisons
    

**If you are planning to establish or operate a company in Turkey in 2027, we can calculate your expected effective tax rate before the structure is implemented. Contact OZM Consultancy for a company-specific tax assessment and implementation plan.**

**info@ozmconsultancy.com**