Question 1

What is the corporate income tax rate in Turkey for 2026?

Accepted Answer

The standard corporate income tax rate is 25% (Corporate Tax Law No. 5520, art. 32). Banks, financial institutions and companies operating under build-operate-transfer / public-private-partnership contracts are taxed at 30%. Income derived solely from exports benefits from a 5-point reduction (20%), and income from production activity of manufacturers holding an industrial-registry certificate is taxed at 12.5% (art. 32/8, in force 21 May 2026).

Question 2

What is the domestic minimum corporate tax in Turkey?

Accepted Answer

Since 2025, corporate tax computed under articles 32 and 32/A cannot be less than 10% of corporate income before exemptions and deductions (art. 32/C, added by Law 7524). Certain exemptions (e.g. free-zone, Technopark, R&D) are removed from the minimum-tax base. Companies are exempt from the minimum tax for their first three accounting periods. If the 10% floor exceeds the regular tax, the floor is payable.

Question 3

How is advance (provisional) corporate tax paid in Turkey?

Accepted Answer

Advance corporate tax is paid during the year at the current period's corporate tax rate on cumulative quarterly profit, and is credited against the annual corporate tax (art. 32/2). Since Law 7338 removed the fourth quarter, there are three quarterly advance-tax declarations per year. The annual return settles any remaining balance.

Question 4

Is dividend withholding tax separate from corporate tax?

Accepted Answer

Yes. Corporate income tax is levied on company profit. When the after-tax profit is distributed to shareholders, a separate dividend withholding tax applies (15% domestic, or a reduced double-tax-treaty rate for qualifying foreign shareholders). This calculator covers only the corporate income tax layer.

Turkey Corporate Tax Calculator 2026 — Rate, Advance Tax & Minimum Tax

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