Turkish citizens are fully aware of everything related to taxes in Turkey, and they carefully follow all amendments to tax laws issued by the competent authorities, everyone knows what he has and what he has to do.
Thus, as a resident of Turkish territory, must follow up on all matters related to the tax law, with the need-to-know accurate information on this subject, especially if you intend to buy an apartment in Turkey or start a new business.
Therefore, in this article we have tried to provide a quick presentation of some types of taxes in Turkey that are of interest to a wide segment of investors, as we highlight: rental tax, profit tax, income tax, value added tax.
Wage Tax (STOPP)
It is a tax imposed on a corporate lease, and the tax value is a quarter of the value of the lease, and it is paid every three months at the Tax Department.
If you pay a monthly rent of 1,000 Turkish liras, the stobag tax is 750 liras, to be paid every 3 months.
Profit Tax
It is the tax due on capital gains from the sale of real estate in Turkey, and is calculated by subtracting the sale value of the property from the original purchase value.
Therefore, you pay tax on the amount of profit in the original capital when you buy the property.
Here you have to differentiate and not confuse the stamp tax when selling real estate, which is imposed on both the seller and the buyer, and the capital gains tax on the sale of real estate, as the difference between them is fundamental.
Income Tax
It is the net number of profits and revenues that a person achieved during one year, whether these profits were commercial gains, agricultural profits, self-employment profits, real estate capital gains, stock capital gains and other gains and other incomes.
Income tax is imposed on all residents of Turkey, whether Turks or foreigners affiliated with official offices and institutions.
It is also imposed on residents of Turkey for more than 6 months without interruption during the year.
While income tax is imposed on Turks residing outside Turkey, who own establishments that conduct business in Turkey.
Value Added Tax - VAT (KDV)
It is a tax paid by an individual on goods and services sold, and it is imposed at varying rates on spending: 1%, 8% and 18%, according to the necessity of the consumed goods.
The rate of 1% applies to wheat and its derivatives, which are basic consumer items, in addition to real estate that does not exceed 150 square meters.
As for the value-added tax of 8%, it is applied to basic consumer items, such as: legumes, eggs, milk and its derivatives, meat and its derivatives, and other products not attributed to luxury products.
While the value-added tax is applied at a rate of 18% on non-consumable products and some exceptions are made for other consumable items, such as: furniture, mobile phones, electrical appliances, some animals, some spices and others.
It is worth noting that tax laws in Turkey are amended from time to time; To reduce the value of some of them either permanently or for a specified period.
Just as it was decided at the beginning of the current year 2021 to postpone the entitlement to income tax and value added tax on sectors whose activities were temporarily or permanently suspended under mandatory circumstances.
Therefore, you should pay attention to these amendments announced by the Turkish Ministry of Finance, or seek the assistance of experts in this field to provide you with the latest amendments in this regard.
Finally. If you want to know more information about taxes in Turkey, or if you wish to pay one of the taxes due, contact us at Trustus, so that we will take care of all the legal procedures on your behalf to complete the payment process.
Edited by: Trustsus Consulting©
