The standard corporate tax rate is 22% for 2018, 2019 and 2020 (earlier rate 20%).
Compliant taxpayers are eligible for a 5% tax credit calculated based on their tax liability for the year. The maximum credit amount is TRY 1 million. Conditions for availing the credit include:
- The tax return for the current year and the two previous years must have been submitted by the statutory deadline;
- The taxpayer must not be subject to any tax assessments for the current year or the previous two years;
- The taxpayer must not have any outstanding tax debts or penalties in excess of TRY 1,000 at the time the return is submitted; and
- The taxpayer must not have committed any fraudulent acts in the current and previous four years.
The tax credit is available for individual and corporate taxpayers for returns submitted after 1 January 2018, with the exception of companies in the finance, banking, insurance, reinsurance, and retirement/pension investment sectors.