The tax system
in Turkey is progressive. So the higher your income, the higher the rate at
which you pay tax. Currently, the tax rates range from the standard rate of
15% of net profit up to 35%. The table below shows earnings in Turkish Lira
(YTL).
Turkey
individual income tax rates 2005
Tax
%
The
Tax Base (YTL)
15
6,600
20
15,000
25
30,000
30
78,000
35
78,001
(The tax
relates to the income of an employed person. The tax rates for
self-employed people are 5% higher).
Whilst
permanent residents pay tax on any income earned in Turkey and overseas,
foreign residents pay tax only on income earned in Turkey. (To be
considered as a Turkish resident, you must establish that you have been
living in the country for more than 6 months during any calendar tax
year.)
Turkish
employers are obliged by law to deduct, at the start of each month, the
amount of tax and national insurance due from a salaried worker. A self
employed person is required to make 4 advance payments on income tax
that will be off-set on filing an annual report. In the case of a new
business, these advance payments will be calculated according to the
estimates of the owner of the business.
Social
Security payments
The employer's contribution
is 19.5% of the salary, whilst the employee's contribution is 14% of
salary.
