Tax in Turkey: VAT, income tax, company tax, capital gains
20%
Turkey charges 20% VAT on most goods and services. The rate is verified against Turkish Revenue Administration (Gelir Idaresi Baskanligi) on 19 August 2026; the top personal income-tax rate is 40% (2026 tax year, Gelir İdaresi Başkanlığı (GİB)), and the headline company tax rate is 25% (OECD Corporate Tax Statistics).
VAT in Turkey
Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- Standard rate
- 20%
- Local name
- VAT — Value Added Tax
- Type
- VAT
- Reduced rates
- 10%
- Filing
- Quarterly / Monthly / Annual
- Authority
- Turkish Revenue Administration (Gelir Idaresi Baskanligi)
- Current rate since
- 10 July 2023
Income tax in Turkey
The top personal income-tax band is 40% for the 2026 tax year.
Company tax in Turkey
The headline corporate income tax rate is 25%. In effect since 1 January 2026.
Indicative only: confirm with Turkiye's national tax authority. OECD 2026: central statutory CIT 25%, combined (central+sub-central) n/a%
Capital gains tax in Turkey
- Shares
- Borsa Istanbul-listed shares of fully taxable Turkish companies: held > 1 year - outside withholding and outside the capital gains article (not taxed); held <= 1 year - subject to GVK provisional art. 67 withholding, whose rate for individuals' share trading gains is set at 0% by Cabinet Decision 2008/14272, final (no annual or separate return). Other shares (unlisted, foreign-listed): gains taxed as ordinary income (value-increase gains, GVK mukerrer art. 80) at progressive rates 15-40% (2026 tariff)
- Property
- Taxed as ordinary income (value-increase gain) at progressive income tax rates 15-40% (2026 tariff, GVK art. 103) if disposed of within 5 years of acquisition; not taxed if held more than 5 years
- Holding period
- BIST-listed shares of fully taxable corporations held > 1 year: excluded from art. 67 withholding and from mukerrer art. 80. Unlisted shares of fully taxable Turkish corporations held > 2 years: excluded from mukerrer art. 80(1). Otherwise no holding-period relief.
Ask your AI assistant about tax in Turkey
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the VAT rate in Turkey, and what is the source?”
- “Estimate income tax in Turkey on TRY 60,000 for 2026.”
- “What is the company tax rate in Turkey and how is it sourced?”
Connect in three steps, and what a connected answer looks like: Tax MCP.
Turkey, answered
Questions about tax in Turkey
- What is the VAT rate in Turkey?
- The standard VAT (Value Added Tax) rate in Turkey is 20%, verified against Turkish Revenue Administration (Gelir Idaresi Baskanligi) on 19 August 2026. A reduced rate of 10% applies to some categories. Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- What is the top income tax rate in Turkey?
- The top personal income-tax band in Turkey is 40% for the 2026 tax year, verified against Gelir İdaresi Başkanlığı (GİB) on 6 October 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.
- What is the company tax rate in Turkey?
- The headline corporate income tax rate in Turkey is 25%, as published by OECD Corporate Tax Statistics (checked 6 October 2026, verification pending). Indicative only: confirm with Turkiye's national tax authority. OECD 2026: central statutory CIT 25%, combined (central+sub-central) n/a%
- How is capital gains tax charged in Turkey?
- In Turkey, the regime is mixed, verified against Mevzuat Bilgi Sistemi (official legislation database) - Gelir Vergisi Kanunu No. 193, consolidated text on 6 October 2026. On shares: Borsa Istanbul-listed shares of fully taxable Turkish companies: held > 1 year - outside withholding and outside the capital gains article (not taxed); held <= 1 year - subject to GVK provisional art. 67 withholding, whose rate for individuals' share trading gains is set at 0% by Cabinet Decision 2008/14272, final (no annual or separate return). Other shares (unlisted, foreign-listed): gains taxed as ordinary income (value-increase gains, GVK mukerrer art. 80) at progressive rates 15-40% (2026 tariff) Holding period: BIST-listed shares of fully taxable corporations held > 1 year: excluded from art. 67 withholding and from mukerrer art. 80. Unlisted shares of fully taxable Turkish corporations held > 2 years: excluded from mukerrer art. 80(1). Otherwise no holding-period relief.
- Can an AI assistant look up tax rates for Turkey?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the VAT rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
Sources
- Turkish Revenue Administration (Gelir Idaresi Baskanligi)
- Gelir İdaresi Başkanlığı (GİB)
- OECD Corporate Tax Statistics
- Mevzuat Bilgi Sistemi (official legislation database) - Gelir Vergisi Kanunu No. 193, consolidated text
Last checked 6 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
See every rate side by side in the tax rates table, put Turkey next to another country in the comparison tool, or read the tax facts.
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