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Retained

  • Statutory Tax Rate 20
  • Surtax Based on Taxable Income 0
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 20

Statutory Tax Rate

The standard corporate income tax rate is 20% for all companies (23% for 2022). A higher rate of 25% applies to financial sector companies, including banks, financial leasing companies, asset management firms, and insurance companies.

Effective from 1 January 2021, qualifying companies that list at least 20% of their shares on the Istanbul Stock Exchange in an initial public offering are eligible for a reduction in the corporate income tax rate by two percentage points for five years (i.e., an 18% rate instead of 20%).

Effective Tax Rate

The standard corporate income tax rate for the tax year 2022 is 23% (previously 25% for 2021). However, the 25% rate still applies to financial sector companies, including banks, financial leasing companies, asset management firms, and insurance companies for the tax year 2022. The standard tax rate of 20% will apply from the tax year 2023 onwards.

Effective from 1 January 2021, qualifying companies that list at least 20% of their shares on the Istanbul Stock Exchange in an initial public offering are eligible for a reduction in the corporate income tax rate by two percentage points for five years (i.e., a 21% rate for 2022 instead of 23%).

Capital Gains

  • Statutory Tax Rate 25
  • Surtax Based on Taxable Income 0
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 25

Statutory Tax Rate

Capital gains are treated as ordinary income and taxed at the standard corporate rate of 25%.