Corporation Tax In Turkey

Corporation tax is assessed on the basis of Statute 5422, first passed in 1949. As with the law governing the income tax, a vast number of amendments have been transformed the Corporation Tax Code, particularly since the 1980's. The following discussion incorporates changes up to Statute 4008.

The Corporation Tax Code applies to the profits earned by "companies with share capital" (joint-stock companies, limited companies, limited partnerships) cooperatives, state-owned companies, economic enterprises owned by associations and foundations, and mutual funds and investment trusts governed by the Capital Market Law.

Corporation tax is generally assessed on the basis of a company's reported calendar-year profits. (It is however possible to obtain permission from the ministry for a different fiscal reporting period.) Two types of corporation tax liability are defined: "full" and "limited". Those with a "full" corporation tax liability are corporate entities whose legal or business