The accounting and tax system in Turkey

Expertise and understanding of the accounting and tax system in Turkey are crucial for foreign companies intending to operate in Turkey.

The accounting and tax system in Turkey is complex, and full compliance with local laws and regulations is necessary. Hence, obtaining a knowledgeable and experienced consultant in accounting and taxation is paramount for businesses.

The accounting system in Turkey requires each company to regularly submit financial reports. Monthly, quarterly, and annual tax returns must be reported to the Turkish tax office. Negligence in these obligations can lead to heavy financial penalties.

Regarding the tax system in Turkey, there are significant facts about various topics such as tax collection, tax systems, and the invoicing system. For instance, Corporate Tax is the tax that companies in Turkey are required to pay on their profits, and its rate is 23%.

The Value Added Tax (VAT), is typically applied to the selling price of the product or service. Generally, the VAT rate is 18%. However, this rate can be reduced to 8% for specified sectors, products, and services. For example, most food products, books, magazines, and other printed materials, health and educational services are a range of products and services that are subject to a VAT rate of 8%.

At our office, we have over 40 years of experience in providing accounting and taxation services in Turkey. We have a multilingual team (Arabic, English, and Russian) ready to offer support and advice to foreign companies operating in Turkey.

For more information about taxes and accounting in Turkey, please contact us.