The corporate tax rate in Türkiye is 25 per cent on a company’s profit, 30 per cent for banks, financial institutions, insurers and pension companies, and a set of statutory reductions takes exporters to 20 per cent, newly listed companies to 23 per cent and manufacturers to 24 per cent for 2025 and 2026 profits and to 12.5 per cent from 2027. Those figures come from Article 32 of the Corporate Tax Law No. 5520 as amended, and every figure on this page is read from that consolidated text or from the tax authority’s own rate table. Under them sit three rules a foreign shareholder is rarely told in one place: a domestic minimum tax floor of 10 per cent of profit before exemptions, a statutory withholding of 15 per cent on dividends and branch profits sent abroad, and a global minimum top-up tax for groups above 750 million euro of revenue. This page states each one with its article, its period and its condition, and says where the number is set by decree rather than by the statute.
What is the corporate tax rate in Türkiye in 2026?
Twenty-five per cent of the corporate profit for most companies, and the table below is the whole of Article 32 for the 2025 and 2026 periods, cross-checked against the rate table the Revenue Administration publishes.
| Company or profit | Rate for 2025 and 2026 profits | Provision |
|---|---|---|
| All corporate taxpayers not listed below | 25% | Article 32/1 |
| Banks, leasing, factoring and finance companies, payment and e-money institutions, exchange offices, asset management companies, capital markets institutions, insurance, reinsurance and pension companies, build-operate-transfer and health public-private-partnership project companies | 30% | Article 32/1 |
| A company floating at least 20% of its shares on Borsa Istanbul for the first time, for five periods (financial companies excluded) | 23% | Article 32/6 |
| Profits from export, including export through a foreign-trade or sectoral foreign-trade company | 20% | Article 32/7 |
| Manufacturing profits of a company holding an industrial registry certificate and actually producing | 24% | Article 32/8, before the 2026 amendment |
| Newly listed and exporting | 18% | Articles 32/6, 32/7 and 32/9 |
| Newly listed and manufacturing | 22% | Articles 32/6, 32/8 and 32/9 |
The 25 and 30 per cent figures were set by Law No. 7456 of 14 July 2023 for 2023 and later profits, when the general rate went from 20 to 25 and the financial rate from 25 to 30. Article 32/9 provides that the export and manufacturing reductions are applied on the rate that remains after the other reductions, which is how the two combined lines in the table are reached. Advance corporate tax is paid during the year at the same rate under Article 32/2 and set off against the annual liability.
Who is taxed on worldwide profits, and who only on Turkish profits?
A company whose legal seat or whose business centre is in Türkiye is taxed on its worldwide profits, and a company with neither is taxed only on what it earns in Türkiye. That is Article 3 of the Corporate Tax Law. The Turkish-source profits of a non-resident company are listed in Article 3/3: commercial profits earned through a Turkish place of business or permanent representative, agricultural profits, professional income, rents from Turkish assets, investment income and other income. The same article carries an exception that decides many trading structures: goods a foreign company buys in Türkiye and ships abroad without selling them in Türkiye do not produce Turkish-source profit, and a sale counts as made in Türkiye where either party, or the contract, is here. A foreign parent operating through a Turkish subsidiary is therefore outside Article 3/2 altogether; the subsidiary is a resident company on the full 25 per cent and the parent’s exposure is the withholding on what comes out of it, set out below.
Manufacturers pay 12.5 per cent from 2027: the change most guides have not caught
Law No. 7582 of 21 May 2026, published in the Official Gazette of 4 June 2026, rewrote Article 32/8 so that the corporate tax rate on the manufacturing profits of a company holding an industrial registry certificate and actually engaged in production, and on the production profits of an agricultural producer, is 12.5 per cent. The consolidated text’s own entry-into-force table applies that version of Article 32 to profits earned in 2027 and later periods, and to the special fiscal year beginning in 2027 for companies on one. For 2025 and 2026 profits the earlier text stands, one point off the general rate, which is why the Revenue Administration’s rate table still shows 24 per cent and is correct for those years. The new paragraph also provides that profits taxed at 12.5 per cent do not take the export reduction on top. A foreign manufacturer deciding between an assembly operation and a full production line in Türkiye is deciding between 25 and 12.5 per cent on those profits from 2027, and the industrial registry certificate is the document the rate turns on.
How does the reduced rate under an investment incentive certificate work?
A company investing under an investment incentive certificate issued by the Ministry of Industry and Technology pays corporate tax on the profits of that investment at the rate reduced by 60 per cent, which on a 25 per cent company means 10 per cent, from the period the investment begins operating, until the tax saved reaches the contribution amount fixed for the investment, and for at most ten periods including the first. That is Article 32/A as amended by Law No. 7555 of 20 July 2025, and the amendment added a rule that catches groups who plan loosely: a contribution amount that could have been used in a period where profit existed and was not used is lost for later periods. Finance and insurance companies, joint ventures, contracting work, investments under Laws 4283 and 3996 and royalty-based investments are outside the article. The President sets the contribution rate for each region, sector and technology class, and the statute caps it at 50 per cent of the investment. The certificate is applied for before the investment, not after, and the rate applies to the profits of the investment rather than of the company as a whole, so the accounting has to separate the two from the first period.
What is the 10 per cent minimum corporate tax?
Since the 2025 period the corporate tax computed after every reduction and exemption cannot be less than 10 per cent of the company’s profit before exemptions and deductions, and that floor is Article 32/C, added by Law No. 7524 of 28 July 2024. The base is the commercial balance-sheet profit plus non-deductible expenses, from which the article lets a listed set of exemptions and deductions be taken first: participation exemptions, the free-zone and technopark exemptions, the research and design deductions and, since Law 7582, the Istanbul Finance Centre deduction. Two provisions matter to a company being set up now. A company is outside the minimum tax for its first three periods, counted from the period it starts operating, under Article 32/C/5. And the tax not collected because of the export, manufacturing or listing reductions, and the reduced-rate incentive tax on certificates issued before the article came into force, are credited against the minimum, so the floor bites on companies living on exemptions rather than on companies using the rate reductions. The floor applies to advance tax periods as well.
What withholding applies to dividends and branch profits paid to a foreign shareholder?
The statute sets 15 per cent, and the rate actually applied is fixed by Presidential decision under the same article and may be reduced by a double taxation treaty. Article 30/3 of the Corporate Tax Law provides that dividends distributed by a resident company to a non-resident corporation are subject to 15 per cent corporate tax withholding, and that adding profit to capital is not a distribution, so a bonus share issue carries no withholding. Article 30/6 applies the same 15 per cent to the amount a Turkish branch of a foreign company remits to its head office out of its profit after corporate tax. Article 30/1 and 30/2 set 15 per cent on professional fees, rents, royalties and other listed payments to non-resident companies, and the decisions in force apply 20 per cent to all three, 0 per cent to interest on a loan from a foreign bank and 10 per cent to interest on any other loan. Article 30/7 stands apart: any payment to a company in a jurisdiction the President lists as offering no comparable taxation or information exchange carries 30 per cent, whether or not the payment would otherwise be taxable, with loans from foreign financial institutions and insurance premiums excepted. The applied dividend and branch rate is the 15 per cent set by Presidential Decision No. 9286 of 21 December 2024, which replaced the 10 per cent in force since December 2021, and every row with the decision behind it is on our page on withholding tax in Turkey; we read the decree and the treaty for the shareholder’s own country before a distribution is approved, because the difference between the statutory figure and the applied one is the shareholder’s money.
What happens when a Turkish company sells shares or property?
Seventy-five per cent of the gain on participation shares held for at least two full years is exempt, and the gain on an immovable is now fully taxable unless the property was on the balance sheet before 15 July 2023. Article 5/1(e) exempts three quarters of the gain on participation shares, founder and usufruct shares, pre-emption rights and qualifying fund units held for two full years, on three conditions the article states: the exempt part is kept in a special fund account until the end of the fifth year after the sale, the price is collected by the end of the second calendar year after the sale, and the exempt amount is not withdrawn or remitted to a foreign head office within five years except by capitalisation. Law No. 7456 removed immovables from the article, and transitional Article 16 keeps the earlier regime only for immovables already held on 15 July 2023, at 25 per cent of the gain rather than the former 50. A foreign group holding Turkish real estate through a company acquired after that date sells at the full 25 per cent corporate rate on the gain, which is the figure to put beside the individual route’s five-year exemption in our guide to capital gains tax in Türkiye before choosing how to hold the asset.
Which deductions are written for foreign groups?
Two, both at 95 per cent and both in Article 10/1 as rewritten and extended by Law 7582 for the 2026 period onward. Subparagraph (i) deducts 95 per cent of the profit a Turkish company earns from buying goods abroad and selling them abroad without bringing them into Türkiye, or from brokering such trades, provided the profit is transferred to Türkiye by the date the annual return is due and neither the seller nor the buyer is in Türkiye. Subparagraph (j) deducts 95 per cent of the profit a company operating as a qualified service centre under the Foreign Direct Investment Law No. 4875 earns from abroad, exclusively from that activity, for twenty periods from the period the centre starts, on the same transfer condition; the deduction is 100 per cent for companies in the industrial zones the President approves for their foreign-investment density and for companies holding a participant certificate in the Istanbul Finance Centre. A technology group placing a shared-service, engineering or support centre in Türkiye is the company subparagraph (j) was written for, and the qualification is granted under the FDI Law’s own procedure, which we run alongside the incorporation.
Does the global minimum tax apply to a Turkish subsidiary?
Yes, where the group’s ultimate parent reported consolidated revenue above 750 million euro in at least two of the four preceding periods. The Fifth Part of the Corporate Tax Law, Supplementary Articles 1 to 11 added by Law 7524 for the 2024 period, imposes a domestic and a global minimum top-up corporate tax on the Turkish constituent entities of such a group, so that their effective rate reaches the minimum whatever exemptions and reductions the ordinary rules allow. Supplementary Article 3 exempts public bodies, international organisations, non-profits, pension funds and investment-fund or real-estate-vehicle ultimate parents. Transitional Article 17 carries the substance-based carve-outs for the first years, starting at 7.8 per cent of tangible assets and 9.8 per cent of payroll for 2024 and declining. For a group of that size the Turkish incentive rate is therefore read together with the top-up, not on its own.
When is the corporate tax return filed and paid?
The return is filed between the first and the twenty-fifth day of the fourth month after the fiscal year closes, and the tax is paid by the end of that month. For a company on the calendar year that is 1 to 25 April with payment by 30 April, under Articles 14/3 and 21/1 of the Corporate Tax Law. Advance tax returns run through the year under Article 32/2 at the corporate rate and are set off in the annual return. A company files one return for all its profit; branches, agencies and workshops do not file separately even where they keep separate books, and the competent tax office is the one for the legal seat or the business centre.
The disclosure window for assets held abroad, open until 31 July 2027
Transitional Article 19, added by Law 7582 and in force since 4 June 2026, lets any natural or legal person declare money, gold, foreign currency, securities and other capital-market instruments held abroad to a Turkish bank or intermediary until 31 July 2027, and bring them into Türkiye within two months of the declaration, against a tax of 5 per cent of the declared value collected by the bank. The rate falls to 4, 3, 2, 1 and 0 per cent where the assets are committed for one, two, three, four or five years to time deposits, government securities or venture-capital funds, with half a point added to every rate from 1 January 2027; the whole schedule, the two-month transfer rule and the six ways the protection is lost are set out in our guide to the 2027 asset amnesty in Türkiye. Declared assets are not counted in the period’s profit and may be withdrawn after two years without tax; a company keeps them in a special fund account for two years and may add them to capital. For a shareholder who acquired Turkish citizenship by investment and now holds assets in two countries, this is the instrument to read before the 2026 return, and it is read with the inheritance and gift tax rule that follows Turkish nationality rather than residence.
Speak to us before the structure is chosen
The rate a Turkish company pays is decided by decisions taken before incorporation: whether the operation is production or assembly, whether it exports directly or through a trading company, whether it qualifies as a service centre under the FDI Law, whether an incentive certificate is obtained first, and how the profit will leave the country. We advise foreign groups and their shareholders on the structure, obtain the certificates, run the incorporation and put the withholding and treaty position in writing before the first distribution, for clients in any country and in their own language. WhatsApp +90 530 127 59 35 · Email info@serkalaw.com, written fee the same business day. The wider system, including VAT and the individual income tax tariff, is set out in our guide to the Turkish tax system, and the incorporation itself in our company formation service.
This article is general information about Turkish law and is not legal advice. No attorney-client relationship is formed by reading it; representation begins only under a signed engagement.