Turkey Corporate Income Tax
Detailed corporate income tax rates and rules for Turkey in 2026.
Turkey's corporate income tax rate is 25%, effective from 2023 onwards (increased from 20% pre-pandemic). All corporate income, including capital gains, is subject to this rate. A 5-percentage-point reduction applies to income derived from exports, production activities, and certain technology development zone activities. Companies operating in free trade zones may benefit from corporate tax exemptions on export-related manufacturing income.
Standard Rate
25%
Additional Notes
Turkey has a participation exemption that exempts 100% of dividends received from Turkish resident companies and 50% of dividends from foreign subsidiaries meeting certain conditions. Capital gains on shares held for at least 2 years are 75% exempt. Turkey applies thin capitalization rules (3:1 debt-to-equity ratio) and transfer pricing regulations aligned with OECD guidelines. A minimum corporate tax of 10% of commercial profits was introduced in 2025.
How Turkey Corporate Tax compares
Turkey’s corporate tax rate of 25% is the 69th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Asia’s regional average of 19.7%.
