Turkey Corporate Income Tax

Corporate income tax (2025)

Turkish corporate income tax applies a flat 25% rate (30% for banks and certain financial institutions). From 2025 a domestic minimum corporate tax and Pillar Two top-up rules also apply. Resident companies are taxed on worldwide income.

• Standard corporate income tax rate — 25% % (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/taxes-on-corporate-income))
• Financial-sector corporate income tax rate — 30% % (banks, financial leasing, factoring, financing, insurance, capital-market institutions) (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/taxes-on-corporate-income))
• Domestic minimum corporate tax — Effective 1 Jan 2025: corporate tax must be at least 10% of corporate income before certain exemptions/deductions; pay the higher of standard vs minimum calculation % (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/taxes-on-corporate-income))
• Pillar Two global minimum tax — 15% QDMTT for MNE groups with consolidated revenue of EUR 750m or more; IIR from 2024 fiscal years, UTPR from 2025 (Corporate Tax Law No. 5520 (Pillar Two / GloBE rules) (https://taxsummaries.pwc.com/turkey/corporate/taxes-on-corporate-income))
• Tax base — Net accounting profit adjusted for non-deductible expenses, exemptions, deductions and prior-year loss carryforwards (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/taxes-on-corporate-income))
• Loss carryforward — Tax losses may be carried forward up to 5 years; no carryback (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/deductions))
• Withholding tax — dividends — 15% on dividends paid to resident/non-resident individuals and non-resident companies (raised from 10% by Presidential Decree No. 9286, 22 Dec 2024) % (Corporate Tax Law No. 5520; Presidential Decree No. 9286 (https://taxsummaries.pwc.com/turkey/corporate/withholding-taxes))
• Withholding tax — interest — 10% on interest paid to non-residents under domestic law (varies by instrument; treaty rates may reduce) % (approx — rate varies by interest type; confirm) (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/withholding-taxes))
• Withholding tax — royalties — 20% on royalties paid to non-residents (treaty rates may reduce) % (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/withholding-taxes))
• Inter-company dividends (resident to resident) — Dividends between resident companies are generally exempt (participation exemption); no dividend WHT on distributions to resident corporations (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/withholding-taxes))
• Quarterly advance (provisional) tax — Advance corporate tax declared and paid quarterly by the 17th of the second month following each quarter; credited against annual liability (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/tax-administration))
• Annual CIT return & payment deadline — Filed by end of the 4th month after year-end (30 April for calendar-year filers); tax payable by the end of that month (Corporate Tax Law No. 5520 (https://taxsummaries.pwc.com/turkey/corporate/tax-administration))