The tax system in Turkey is progressive.
-In other words, the higher your income, the higher the rate at which you will pay tax.
-The 2010 individual tax rates vary from 15% – 35%.
-in 2010 the standard rate of Turkey corporate tax is 20%.
-An individual in Turkey is liable for tax on his income as an employee and on income as a self-employed person. In the case of an individual who answers the test of a “permanent resident”, the tax will be calculated on his income earned in Turkey and overseas. A foreign resident who is employed in Turkey pays tax only on his income in Turkey.
-To be considered Turkish resident, residence of over 6 months in Turkey during any calendar tax year must be established.
-An employer is obligated to deduct, immediately, each month, the amount of tax and national insurance due from a salaried worker.
-A self-employed individual is obligated to make advance payments on income tax that will be offset on filing an annual report. In the case of a new business, the advance payments will be calculated according to the estimates of the owner of the business. The advance payments will be made 4 times in each year.
-The standard rate for payments in advance of income tax in Turkey is 15% of the net profit.
-Certain payments are deducted from taxable income as detailed below.
-Capital gains are usually added to the normal income.
