Turkish taxes for foreign-owned companies: what you file and when

A limited company (Ltd. Şti.) or joint-stock company (A.Ş.) owned from mainland China or Hong Kong is taxed like any other Turkish company: the Foreign Direct Investment Law gives foreign investors equal treatment. What differs is mainly the paperwork for payments to owners abroad.

This guide covers the main taxes, the filing calendar and the electronic systems your company will use. Figures are as at 16 October 2026.

The main taxes at a glance

Tax	Rate	Filing
Corporate tax	25% general rate	Annual return plus four provisional returns
Domestic minimum corporate tax	Floor of 10% (see below)	With corporate and provisional tax
VAT	20% general; 10% and 1% reduced	Monthly
Income tax withheld on salaries	Income tax tariff	Monthly, with social security
Dividend withholding	15%; a treaty can lower it	When dividends are paid
Stamp duty	Depends on the document	Arises on signing; filed monthly or within 15 days

Corporate tax

The general corporate tax rate is 25%. Banks, financial and insurance companies, payment and e-money institutions, reinsurance and pension companies pay 30%. Earnings derived exclusively from exports are taxed at a rate 5 percentage points lower.

From 2027 profits, Law No. 7582 introduces a 12.5% rate for manufacturing profits of companies holding an industrial registry certificate, and for agricultural production profits. These profits cannot also use the export reduction. See our note on investment incentives for manufacturers.

The annual corporate tax return is filed in the fourth month after the financial year ends, which means April for a company that follows the calendar year. The tax is paid by the end of the month in which the return is filed. Inflation adjustment for tax purposes is not applied for the 2025, 2026 and 2027 accounting periods (Law No. 7571).

Domestic minimum corporate tax is not the global minimum tax

Since 2025, a company’s corporate tax cannot be lower than 10% of its corporate income calculated before deductions and exemptions. The floor also applies in provisional tax periods. A company starting business for the first time is exempt for its first three accounting periods.

Do not confuse this with the 15% global minimum tax (Pillar Two). That applies only to multinational groups whose consolidated revenue exceeded EUR 750 million in at least two of the four preceding years. If your group is that large, see the global minimum tax for Chinese and Hong Kong groups and our global minimum tax notification and CbCR notification services.

Provisional tax: four quarters again

Companies pay corporate tax in advance each quarter. Law No. 7566 reinstated the fourth-quarter return from the 2025 accounting period, so a company now files four provisional tax returns a year. Older guides that mention three are out of date.

The law sets the 14th for filing and the 17th for payment of the second month after each quarter; in the tax administration’s practice both are due by the 17th. For a calendar-year company that means 17 May, 17 August, 17 November and 17 February. The return for July to September 2026 is due by 17 November 2026. Provisional tax paid during the year is offset against the annual corporate tax.

VAT

The general VAT rate is 20%, with reduced rates of 10% and 1%; these rates have applied since 10 July 2023. VAT returns are monthly and due by the 28th of the following month. The VAT Law says the 24th, but the tax administration has extended the deadline to the 28th until further notice.

The withholding and social security premium return (Muhtasar ve Prim Hizmet Beyannamesi) is due by the 26th of the following month. It reports income tax withheld on salaries and on some other payments, together with social security (SGK) premiums. Each new employee must be registered with SGK before starting work. See our payroll service.

Dividends, interest and royalties paid to China or Hong Kong

Under the Foreign Direct Investment Law, net profits and dividends can be transferred abroad freely through banks. Turkish withholding tax applies when they are paid. Since 22 December 2024 the domestic rate on dividends paid to non-resident individuals, and to foreign companies without a permanent establishment in Türkiye, has been 15%. A tax treaty can cap it:

Shareholder	Maximum Turkish withholding on dividends
No treaty relief	15%
Resident of mainland China (China–Türkiye treaty)	10%
Hong Kong company holding at least 25% directly for 365 days, including the payment date	5% (paid from 1 January 2027)
Other Hong Kong residents	10% (paid from 1 January 2027)

The Hong Kong treaty entered into force on 30 January 2026, but on the Turkish side its withholding limits apply to amounts paid on or after 1 January 2027. Dividends paid to a Hong Kong shareholder before then are taxed at the domestic rate. The same treaty caps interest at 7.5% (loans of more than two years from financial institutions) or 10%, and royalties at 7.5% (for industrial, commercial or scientific equipment) or 10%. Before the first payment we confirm which documents the treaty rate requires. Our article on the Hong Kong–Türkiye tax treaty has more detail.

Stamp duty and beneficial owners

Stamp duty applies to signed documents and arises when they are signed. Contracts that state an amount are generally taxed at 0.948%; lease agreements at 0.189% of the total rent for the lease term.

Corporate taxpayers report their beneficial owners with their provisional and annual corporate tax returns. A new registration or a change is reported within one month.

Electronic systems

e-Ledger (e-Defter): since 1 January 2025 every company keeps its journal and general ledger electronically, signed with a financial seal or e-signature.
e-Invoice (e-Fatura): not automatic for a new company. Under the current rules it becomes mandatory, together with e-Archive, from 1 July of the following year once annual gross sales reach TRY 3 million, or TRY 500,000 for online sellers and for businesses dealing in real estate or motor vehicles. A company can join earlier voluntarily.
e-Archive invoices (e-Arşiv): since 1 January 2026, a company that is not on e-Invoice must still issue its invoices electronically, as e-Archive invoices, whatever the amount (apart from narrow exceptions). In practice, invoicing is electronic from the first sale.
e-Tebligat: official tax notices arrive in an electronic box, and a notice counts as served at the end of the fifth day after it arrives. A new company joins within 15 days of starting business. A company that should be in the system but has not joined yet must do so by 30 November 2026.
Record keeping: commercial books and documents are kept for 10 years under the Commercial Code; tax law requires 5.

Who signs your returns

No Turkish law requires a company to sign a contract with an accountant. The law does require that the corporate tax, VAT and withholding returns of companies below certain size thresholds are signed by a licensed accountant (SM or SMMM). A new company is normally far below them, so in practice it needs a licensed accountant from the start. ETITAX is a firm of licensed Turkish CPAs (SMMM).

Filing calendar for a calendar-year company

Filing	Due
VAT return	28th of the following month
Withholding and social security return	26th of the following month
Provisional corporate tax	17 May, 17 August, 17 November, 17 February
Annual corporate tax return	April
Beneficial owner changes	Within one month
e-Tebligat (new company)	Within 15 days of starting business

The tax administration sometimes extends deadlines. In 2026, for example, the filings due in late May and on 1 June were moved into early June. We track the current dates and remind you of anything that needs your action. For this year’s remaining deadlines, see year-end 2026 deadlines for foreign-owned companies.

What this means for you

Both annual packages cover the recurring filings above (VAT, withholding, provisional and annual corporate tax returns) together with a year of bookkeeping by a licensed Turkish CPA (up to 100 transactions in Basic, up to 500 in Professional). Basic (USD 3,750 per year) is for companies that already exist in Türkiye; Professional (USD 4,950 per year, plus government fees) adds company formation and set-up for new investors. Payroll, e-invoice registration and the one-time e-ledger set-up are add-ons. Prices exclude VAT: no VAT for clients invoiced outside Türkiye; 20% VAT is added for clients in Türkiye.

You can write to us in Chinese or English: WeChat ID etitax or e-mail info@etitax.com.