Evren Özmen
Serbest Muhasebeci Mali Müşavir
Bilirkişi
evrenozmen@ozmconsultancy.com
www.ozmconsultancy.com

Current VAT and Corporate Tax Rate in Turkey: - Important Changes in Turkish Tax Laws: What You Need to Know

Due to economic fluctuation in Turkey, Turkish tax authorities made significant tax legislation changes. You can find the overview of all tax changes below

1-Increase of VAT rates in Turkey as of 10 July 2023

I am not sure if it’s because we, as the Turkish business world, are so proud of our adaptation and adjustment speed to new processes, announcing a significant change in VAT rates on Friday and implementing it on Monday is definitely not a piece of cake that everyone can easily handle

There are three different value added tax rates in Turkey recently, these rates were %1, %8 and %18

VAT rate increase by %2

The current rate of 8% will be raised to 10%, while the existing rate of 18% will be implemented as 20%.

• Value added tax rate until 10 July 2023 is %8–%18
• New Value added tax rate after 10 July is %10-%20

Everyday products such as soap, shampoo, detergent, disinfectants, wet wipes, toilet paper, paper towels, tissues, and napkins were subject to a VAT rate of 8% Interestingly, a recent amendment has increased the VAT rate for these items to 20%.

unfortunately cleanliness and convenience turn into premium due to high VAT rates

The increase in value-added tax is not the only issue for Turkish taxpayers. Additionally, Switzerland, Estonia, and Lichtenstein will also be increasing their value-added tax ratios starting from the beginning of 2024.

2-Increase of Corporate Tax to %25

In Turkey, businesses are currently subject to a corporate income tax rate of 20% on their profits. However, under new legislation, there will be an increase in the corporate income tax rate to 25%, effective from 2023 and onwards.

Corporate tax; which is currently 20 percent, will be increased to 25 .

But there is a significant exemption for exporter companies; to promote exports, the corporate income tax rate, which is currently applied at a reduced rate of 1 percentage point on the profits derived solely from exports by exporting companies, will be further reduced by 5 percentage points. This means; starting from 2023, regular companies have to pay a 25% tax rate, whereas exporters benefit from a lower rate of 20% only on the income they earn from exporting activities.

17.07.2023

Kaynak: www.MuhasebeTR.com
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