Introduction
As a foreign company or individual looking to do business in Turkey, it is important to understand the country’s income tax system. This blog post will provide an overview of the 2024 income tax brackets in Turkey, as well as some additional information that may be helpful to foreign taxpayers.
Income Tax Brackets for self employments in 2024
The Turkish income tax system is progressive, meaning that the tax rate increases as your income increases. For the 2024 tax year, the income tax brackets for individuals are as follows:
| Taxable Income (TRY) | Tax Rate |
|---|---|
| Up to 110,000 | 15% |
| Over 110,000 up to 230,000 | 20% |
| Over 230,000 up to 870,000 | 27% |
| Over 870,000 up to 3,000,000 | 35% |
| Over 3,000,000 | 40% |
Income Tax Brackets for employees under payroll in 2024
The Turkish personal income tax system is progressive, meaning that the tax rate increases as the taxable income increases. For salaried employees in 2024, the tax brackets are as follows:
| Taxable Income | Tax Rate |
|---|---|
| Up to TRY 250,000 | 15% |
| TRY 250,000 – TRY 880,000 | 20% |
| TRY 880,000 – TRY 2,000,000 | 27% |
| Over TRY 2,000,000 | 35% |
In addition to personal income tax, salaried employees in Turkey are also subject to social security contributions. The employer and employee each contribute a percentage of the employee’s salary to the social security system. The total contribution rate is 37.5%, with the employer contributing 22.5% and the employee contributing 15%.
Other Taxes
There are a few other taxes that may be applicable to salaried employees in Turkey, such as the stamp duty and the special communication tax. These taxes are typically deducted from the employee’s salary by the employer.
Conclusion
The Turkish personal income tax system is relatively complex, and it is important for foreign companies and individuals to understand the tax implications of employing staff in Turkey. CPA in Istanbul Accounting and Law Office can provide assistance with all aspects of tax compliance in Turkey.
