Turkiye (Turkey)'s headline corporate income tax (CIT) rate is 25 (30% financial sector).
The headline personal income tax (PIT) rate is 40.
The standard VAT/GST (or equivalent consumption tax) rate is 20. Registration thresholds, zero-rated and exempt categories, and reduced rates vary - see the source link below for full detail.
Under Article 4 of the Income Tax Law (GVK), an individual is a Turkish tax resident if they have legal domicile (ikametgah) in Turkiye - a settled intention to live there, evidenced by property, family, and economic ties - or if they reside continuously in Turkiye for more than six months in a calendar year. Both tests apply alternatively; either is sufficient. Statutory exceptions under Article 5 exclude certain categories (foreign government officials, students, patients, temporary project staff, and similar) from residency even if the six-month threshold is exceeded, where the stay is genuinely temporary. Residents (tam mukellef) are taxed on worldwide income; non-residents (dar mukellef) only on Turkiye-source income.
Turkiye's CFC regime under Article 7 of the Corporate Tax Law applies where a Turkish resident (alone or together with related Turkish residents) controls at least 50% of a foreign company's capital, voting rights, or profit entitlement, and all of the following hold: at least 25% of the foreign company's gross income is passive (dividends, interest, rents, license fees, or securities gains), the foreign company faces an effective tax rate below 10% in its home jurisdiction, and its gross revenue exceeds an indexed threshold (TRY 100,000 as of the most recent update). Where triggered, the CFC's profits are included in the Turkish parent's taxable income in proportion to its shareholding, regardless of distribution, and taxed at the 20% corporate rate.
Under Corporate Tax Law No. 5520, Article 12, a company is thinly capitalized where its debt from shareholders or related parties (persons holding, directly or indirectly, 10% or more of shares, voting rights, or dividend rights) exceeds a 3:1 debt-to-equity ratio at any point in the accounting period (6:1 for loans from related-party banks or financial institutions). Interest, foreign-exchange losses, and related expenses attributable to the excess ("disguised capital") are non-deductible and recharacterized as a dividend distribution subject to dividend withholding tax.
Turkiye maintains more than 85 double tax treaties, reducing withholding rates on dividends, interest, and royalties for treaty-country investors (dividend withholding of 15% by default typically falls to 5-10% under treaty). Where an individual is treaty-resident in both Turkiye and a partner state, most Turkish treaties apply the standard OECD Model Article 4 tie-breaker sequence: permanent home, then center of vital interests, then habitual abode, then nationality, then mutual agreement between competent authorities.