Türkiye

An individual is a Turkish tax resident if their legal residence is in Turkey or they intend to settle there, or, for foreigners, if they are present in Turkey for more than six months in a calendar year. Presence exceeding six continuous months solely to complete a specific, temporary project does not create residency, nor does an extended stay caused by force majeure such as illness or arrest.

The tax year is the calendar year, and the annual return is due by 31 March of the following year with no extensions available. Salaries are taxed through monthly PAYE withholding, and any further liability from a filed return is paid in two instalments, by the end of March and July; non-residents leaving Turkey must settle their full liability within 15 days of departure.

Non-residents are taxed on remuneration for work performed in Turkey or any remuneration paid out from Turkey, regardless of whether it relates to Turkish services, though double tax treaty provisions may provide an exemption. Residents, by contrast, are generally taxed on worldwide salary regardless of where it is earned, paid, or remitted, subject to specific exemptions such as the Law No. 7582 foreign-income regime.

Individual employees may not deduct business expenses. Taxpayers who file an annual return may deduct documented education and health expenses for themselves and their family, capped at 10% of the tax base, and personal insurance premiums paid to Turkish insurers for themselves, a spouse, or children, capped at 15% of taxable income and the annual minimum wage, along with donations to specific institutions within defined limits; Turkey has no general personal allowances.

Law No. 7582 introduced a 20-year income tax exemption for the foreign-source income of certain individuals who become Turkish tax residents, subject to specified conditions. Qualifying individuals are not required to declare that foreign-source income in Turkey.

Türkiye applies no VAT registration threshold, and VAT return periods are monthly.

Türkiye's VAT law distinguishes "partially exempt" supplies — such as leasing immovable property by an individual, financial transactions, and water for agriculture — which carry no input-tax deduction right, from "fully exempt" supplies, including exports of goods and services and international transport, where no VAT is due but input tax remains recoverable.