Corporate Tax in Turkey 2026: Rates, Returns and Exemptions

Turkey applies corporate income tax to Turkish-resident companies on worldwide income and to non-resident entities on income attributable to Turkey. For 2026, the standard corporate tax rate is 25%, while specified financial-sector taxpayers are generally subject to 30%. A company must also test the 10% domestic minimum corporate tax, calculate quarterly advance tax and file an annual return even when exemptions or carried-forward losses reduce the ordinary tax base.

Who pays corporate tax in Turkey?

The Turkish term is Kurumlar Vergisi. Corporate taxpayers include capital companies, cooperatives, public economic enterprises, economic enterprises owned by associations or foundations, and joint ventures formed under the Corporate Tax Law.

A Turkish limited liability company (limited şirket or Ltd. Şti.) and a joint stock company (anonim şirket or A.Ş.) are separate corporate taxpayers. Foreign ownership does not change the basic rate or filing method. A registered Turkish branch is not a separate legal person from its foreign head office, but it is generally treated as a limited taxpayer for profits attributable to the Turkish branch.

If either a company's legal seat or business centre is in Turkey, the company is generally fully liable and taxed on worldwide income. If neither is in Turkey, the entity is generally taxed only on Turkish-source income. A foreign enterprise can still create a Turkish permanent establishment through an office, fixed place, dependent representative, construction activity or other treaty-defined presence. The legal form comparison is explained in the site's guide to LLCs, JSCs, branches and liaison offices.

Corporate tax rates in Turkey for 2026

Where a company has both reduced-rate and ordinary income, it must allocate taxable profit using the statutory calculation rather than applying the lowest rate to the entire tax base. Export and manufacturing reductions do not automatically stack on the same profit. Investment-certificate relief under Article 32/A follows a separate contribution and reduced-rate mechanism.

How is Turkish corporate taxable profit calculated?

The annual return starts from the statutory commercial result and converts it into taxable corporate income. A practical bridge is:

This calculation is not the same as multiplying management-account profit by 25%. Turkish statutory books, Tax Procedure Law valuation rules, inflation accounting where applicable, foreign-exchange valuations, provisions, depreciation, financing restrictions, transfer-pricing adjustments and non-deductible items can all change the tax base.

Common deductible expenses

A cost is generally deductible when it is incurred to earn and maintain business income, is supported by a valid document, is recorded in the correct period and is not prohibited by a special rule. Typical examples include employee costs, office and operational expenses, commercial rent, professional services, qualifying depreciation, business travel and financing costs within statutory limits.

Common non-deductible or restricted items

• Corporate income tax and specified tax penalties, fines and late charges,

• Expenses without sufficient business purpose or supporting documentation,

• Transfer-pricing adjustments for non-arm's-length related-party transactions,

• Interest and foreign-exchange expenses recharacterised under thin-capitalisation rules,

• The non-deductible portion of financing expense where the financing-expense restriction applies,

• Provisions and reserves that do not meet a specific tax-law condition,

• Certain passenger-car, representation, donation and related expenses above statutory limits or outside permitted categories.

A foreign parent invoice is not deductible merely because it is booked and paid. The Turkish company should retain the agreement, service outputs, benefit evidence, allocation key, arm's-length pricing support and withholding/reverse-charge VAT analysis.

The 10% domestic minimum corporate tax

Turkey's domestic minimum corporate tax (yurt içi asgari kurumlar vergisi) applies to accounting periods beginning in 2025 and later. Broadly, corporate tax calculated under the ordinary rules cannot fall below 10% of the company's commercial balance-sheet profit plus tax-disallowed expenses, before specified exemptions and deductions.

The expression “before exemptions and deductions” is not absolute. The law and GİB guide allow specified items—including domestic participation income, share premium, qualifying free-zone and technology-development-zone income, and qualifying R&D/design deductions—to reduce the minimum-tax base. Other items, including several foreign-income exemptions, asset-sale exemptions, donations, qualifying service-export deductions and cash-capital interest deductions, generally do not reduce that base. Each line must therefore be classified twice: once for ordinary corporate tax and once for minimum tax.

Who is temporarily outside the minimum tax?

• Corporate taxpayers that are legally exempt from corporate tax,

• A newly established corporation for its first three accounting periods,

• Corporate taxpayers taxed under the qualifying revenue-based regime in Income Tax Law Article 113.

A merger, demerger, conversion or transfer does not create a new three-period holiday. The minimum-tax calculation also applies in quarterly advance-tax periods. Withholding taxes and paid advance corporate tax may be credited against the resulting liability under the applicable rules.

Simple minimum-tax example

This illustration isolates one exemption and assumes no other adjustment, reduced-rate credit or investment incentive. Actual minimum-tax schedules require line-by-line classification and cannot be reconstructed from the financial statements alone.

Corporate tax exemptions and deductions

An exemption removes qualifying income from the ordinary corporate-tax base; a deduction generally reduces the remaining base when its conditions are met. Neither label guarantees a matching reduction in the domestic minimum tax.

A tax incentive should be mapped when the transaction or investment is designed, not added at return-filing stage. For a broader operational view, see the site's tax and accounting guide for doing business in Turkey.

Loss carryforward, foreign tax credits and group taxation

• Tax losses: Declared losses may generally be carried forward for five years, subject to continuity and restructuring rules. Turkey generally does not allow loss carryback.

• No group consolidation: Each Turkish company files its own return. A profitable group company cannot ordinarily offset a sister company's tax loss through a consolidated return.

• Foreign tax credit: Foreign income taxes paid on income also taxable in Turkey may be creditable within statutory and treaty limits, provided official evidence is obtained and submitted on time.

• Withholding and advance tax: Creditable Turkish withholding tax and paid advance corporate tax are offset against the annual liability; excess amounts follow refund or offset procedures.

Losses should appear on each relevant return and be supported by the original assessments and accounting records. Corporate reorganisations, ownership changes and exempt income can affect how losses are used.

Quarterly advance corporate tax in 2026

Advance corporate tax (kurum geçici vergi) is not a separate final tax. It is a cumulative prepayment calculated using corporate-tax principles and credited against the annual return. From the 2025 calendar year, the fourth advance-tax period applies again.

These are general statutory dates. A deadline falling on a holiday, a special accounting period, force majeure or a Revenue Administration circular may change the operational date. The domestic minimum tax must also be tested in advance-tax periods.

Annual corporate tax return and payment deadline

The annual corporate tax return is filed from the first through the last day of the fourth month following the month in which the accounting period closes. The tax is paid within the filing period.

• Calendar-year company: The 2026 corporate tax return is generally filed and paid from 1 to 30 April 2027.

• Special accounting period: Filing occurs in the fourth month after that period closes; April does not automatically apply.

• Electronic filing: The return and required schedules are submitted electronically, usually through the company's authorised Turkish certified public accountant.

The return package can include financial statements, exemption and deduction schedules, loss carryforward data, related-party and controlled-foreign-company disclosures, R&D or incentive information and other appendices. The exact package depends on the company.

For monthly and annual obligations beyond corporate tax, use the verified Turkey tax filing and payment calendar.

Foreign-owned companies: additional corporate-tax controls

1. Transfer pricing: Related-party goods, services, financing, royalties and cost allocations must meet the arm's-length principle and reporting/documentation rules.

2. Thin capitalisation: Related-party debt above the statutory equity ratio can recharacterise interest and foreign-exchange expenses and trigger dividend treatment.

3. Controlled foreign companies: Income of a low-taxed foreign subsidiary may be included in the Turkish parent's tax base when ownership, passive-income, tax-burden and revenue conditions are met.

4. Permanent establishment: A foreign company can have a Turkish taxable presence even without incorporating a subsidiary.

5. Withholding and treaty relief: Dividends, interest, royalties, services and branch remittances require separate domestic-law and treaty analysis; corporate tax paid by the company does not settle shareholder-level withholding automatically.

6. Global minimum tax: Multinational groups meeting the consolidated-revenue threshold may also fall within Turkey's local and global top-up tax regime. That Pillar Two analysis is separate from the ordinary 10% domestic minimum corporate tax described above.

Year-end corporate tax checklist

• ☐ Statutory books reconcile to bank, receivables, payables, inventory, payroll and tax accounts.

• ☐ Foreign-currency balances, depreciation and period-end valuations follow Turkish tax rules.

• ☐ Non-deductible expenses and financing restrictions are separately coded.

• ☐ Related-party charges have contracts, benefit evidence and pricing support.

• ☐ Every exemption, deduction and reduced rate has a legal and documentary file.

• ☐ The domestic minimum-tax calculation classifies each relief correctly.

• ☐ Carried-forward losses agree with prior returns and remain within the five-year period.

• ☐ Paid advance tax and withholding credits reconcile to official records.

• ☐ Transfer-pricing and cross-border disclosure schedules are complete.

• ☐ The return, schedules, filing receipt, accrual slip and payment evidence are archived.

Corporate tax outcomes depend on accurate monthly records, not only the annual return. The verified tax, bookkeeping and accounting service in Turkey explains how local compliance can be organised throughout the year.

Official sources

• Turkish Revenue Administration — Corporate Tax Law No. 5520

• Turkish Revenue Administration — 2026 Corporate Tax Return Guide announcement

• Turkish Revenue Administration — 2026 Domestic Minimum Corporate Tax Guide

• Turkish Revenue Administration — Filing and Payment Deadlines

• Turkish Revenue Administration — Law No. 7582 amendment announcement

• Turkish Revenue Administration — Current Tax Calendar

This guide was checked on 23 September 2026 and is for general information. Corporate-tax rates, reliefs, minimum-tax treatment and filing duties depend on the accounting period, entity, activity and transaction. Obtain case-specific professional advice before applying an exemption or reduced rate.