As a Turkish resident, you must pay taxes on
- Personal income
- social security
- unemployment insurance
- dividends and interests
- inheritance and gifts
Income from business activities, agricultural profits, salaries and wages, pensions, income from self employment activities, income from immovable property and rights', capital investments, and non-recurrent income.
How much do you have to pay in taxes in Turkey?
Income tax in Turkey will vary depending on your income. the tax amount varies from 15% to 40%. the tax amount will change every year and will be announced by the government. This year its as follows:
- up to 32,000 TL = 15%
- 32,000 to 70,000 TL = 20%
- 70,000 to 250,000 = 27%
- 250,000 to 880,000 = 35%
- over 880,000 = 40%
This tax is payed both by employer and employee. this tax has a minimum of TRY 166 and a maximum of TRY 1,251 per day. The general rates are 20.5% for the employer and 14% for the employee.
Unemployment insurance contributions
is calculated over an upper earnings level of TRY 1,251 per day. The contributions are paid by the employer, employee, and the state, where for an employer, the rate is 2% and for the remaining two is 1%.
Interest tax is 0 to 15%, while non-resident investors always pay it at the maximum rate. In other cases, the tax rate depends on the maturity of bonds and deposits: the longer the maturity, the lower the interest.
Dividends tax is 10%, which is charged only on half of the dividends total. If the income from dividends and income from other sources of an individual exceeds TRY 70,000, or about $4,000, they are included in the annual tax return. In some cases, tax on dividends may be credited against calculated income tax.
Inheritance and gift taxes rates depend on the object cost. The inheritance tax rate ranges from 1 to 30% and from 1 to 10% for gift tax.
These are the taxes that you must pay as a resident in Turkey. Of course, business taxes and other stuff like deductibles are a different story saved for later.