Income tax is a type of tax collected on the existing income of natural persons. These incomes are the return of real estate or movable assets, sales of goods, earnings obtained with self-employment, or income from agricultural activities. Persons who have lived in Turkey for more than six months in a calendar year, Turkish citizens who are affiliated with official organizations or institutions headquartered in Turkey and reside abroad for their businesses are income taxpayers.
These taxpayers must pay an income tax on the earnings and income they have earned in Turkey or abroad. For this reason, taxpayers must prepare the Annual Income Tax Return first.
What is Income Tax Return?
The income tax return is a statement that shows your income and is submitted for the implementation of the tax assessment. You can access the statement from the Turkish Revenue Administration’s website. The annual income tax return is submitted until the evening of the last day of March of the following year. If the income consists only of commercial earnings determined by the simple method, it is given from the beginning of February to the evening of the 25th day of the following year.
How to Pay Income Tax?
Income tax can be paid in two installments during the year in Turkey. Taxpayers who are preparing the annual income tax return can pay the tax through the tax office at the address they reside, the tax office to which their workplace is affiliated, or the banks they work with.
When to Pay Income Tax?
In income tax payments, the payment dates change according to the method of earning.
If the income only consists of commercial earnings acquired on simple earnings basis, the first installment of the income tax must be paid by the end of February and the second installment by the end of June.
If the income does not consist only of commercial earnings acquired on simple earnings basis, the first installment of the income tax must be paid by the end of March and the second installment by the end of July.
How is Income Tax Calculated?
As of 2021, the current income tax rates are as follows:
15% up to 24.000 ₺
Up to 53.000 ₺; 3600 ₺ for the portion of 24.000 ₺ and 20% for the rest
Up to 130.000 ₺; 9400 ₺ for the portion of 53.000 ₺ and 27% for the rest
Up to 650.000 ₺; 30.190 ₺ for the portion of 130.000 ₺ and 35% for the rest
For more than 650.000 ₺; 212.190 ₺ for the portion of 650.000 ₺ and 40% for the rest