What is the Minimum Corporate Tax in Turkey and How is it Calculated?

What is the Minimum Corporate Tax and How is it Calculated?

The calculated corporate tax will be compared to two separate calculations, and the payable corporate tax cannot be less than the highest of the following three amounts:

1. 25% of the financial profit (normal corporate tax calculation),

2. 10% of the profit before deductions and exemptions (excluding certain deductions and exemptions),

3. 25% of 2% of the turnover.

When Will the Minimum Corporate Tax Be Implemented?

The minimum corporate tax will be payable starting from 2025.

How is the Minimum Corporate Tax Calculated?

Steps to Calculate Minimum Corporate Tax

1. Calculate 25% of Financial Profit:

   • Financial Profit × 0.25

   • Example: 1,000,000 × 0.25 = 250,000

2. Calculate 10% of Profit Before Deductions and Exemptions:

   • Profit before deductions and exemptions × 0.10

   • Example: 1,500,000 × 0.10 = 150,000

3. Calculate 2% of Turnover:

   • Turnover × 0.02

   • Example: 10,000,000 × 0.02 = 200,000

4. Calculate 25% of 2% of Turnover:

   • (Turnover × 0.02) × 0.25

   • Example: 200,000 × 0.25 = 50,000

5. Compare the Three Values:

   • 25% of financial profit: 250,000

   • 10% of profit before deductions and exemptions: 150,000

   • 25% of 2% of turnover: 50,000

6. Determine the Highest Value:

   • Highest value among 250,000, 150,000, and 50,000 is: 250,000

7. Calculate the Minimum Corporate Tax:

   • The highest value is set as the minimum corporate tax.

   • In this case, the minimum corporate tax is: 250,000 TL

By following these steps, you can accurately calculate the minimum corporate tax.

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