Turkey
Accounting & Tax Compliance in Turkey
Full compliance with Turkish accounting standards. Monthly bookkeeping, tax optimization, and financial reporting.
Contents
- •Turkish Accounting Standards
- •Tek Düzen Hesap Planı
- •KDV (VAT) Management
- •Corporate Tax & Income Tax
- •SGK & Social Security
- •E-Fatura & E-Defter
- •Annual Financial Statements
- •Tax Incentives & Free Zones
Turkey's accounting system follows the Tek Düzen Hesap Planı (Uniform Chart of Accounts) and Turkish Accounting Standards (TMS/TFRS). The Gelir İdaresi Başkanlığı (Revenue Administration) oversees tax compliance, while SGK manages social security contributions. Turkey's digital transformation includes mandatory e-fatura (e-invoice) and e-defter (e-ledger) for qualifying businesses.
1.Turkish Accounting Standards
Turkish accounting follows TMS (Türkiye Muhasebe Standartları) aligned with IFRS, and the Tek Düzen Hesap Planı for statutory reporting. The Kamu Gözetimi Kurumu (Public Oversight Authority) sets accounting standards. Independent audit required for companies meeting size thresholds. SMMM (Serbest Muhasebeci Mali Müşavir) and YMM (Yeminli Mali Müşavir) are the two levels of certified accountants.
2.Tek Düzen Hesap Planı
The Uniform Chart of Accounts is mandatory for all Turkish businesses. Account classes: 1-Current Assets, 2-Non-Current Assets, 3-Short-Term Liabilities, 4-Long-Term Liabilities, 5-Equity, 6-Revenue, 7-Cost of Sales, 8-Expenses. Financial statements: Bilanço (balance sheet), Gelir Tablosu (income statement). Simplified regime available for small businesses (işletme hesabı esası).
3.KDV (VAT) Management
KDV (Katma Değer Vergisi) rates: 20% standard, 10% reduced, 1% super-reduced. Monthly KDV declarations (KDV Beyannamesi) due by 28th of following month. Input KDV deductible against output KDV. KDV refunds available for exports and certain investments. Reverse charge for cross-border services. Withholding KDV (tevkifat) applies to certain transactions. E-fatura mandatory for KDV-registered businesses above threshold.
4.Corporate Tax & Income Tax
Corporate tax (Kurumlar Vergisi): 25% standard rate. Income tax (Gelir Vergisi): progressive rates 15%-40%. Quarterly advance tax payments. Annual corporate tax return due by April 30. Withholding taxes on dividends (10%), interest, and royalties. Tax loss carry-forward for 5 years. R&D incentives: 100% additional deduction for R&D expenses. Technology development zone (Teknokent) tax exemptions.
5.SGK & Social Security
SGK (Sosyal Güvenlik Kurumu) manages social security. Employer contributions: approximately 20.5% of gross salary. Employee contributions: approximately 14% of gross salary. Monthly APHB (Aylık Prim ve Hizmet Belgesi) declaration. Minimum and maximum contribution bases apply. Work accident insurance rates vary by sector. SGK incentives available for new hires, young employees, and women.
6.E-Fatura & E-Defter
Turkey is a leader in digital tax administration. E-fatura (e-invoice): mandatory for businesses with annual revenue above TRY 3 million. E-defter (e-ledger): electronic bookkeeping mandatory for e-fatura users. E-arşiv fatura: for B2C transactions. E-irsaliye: electronic waybill. All submitted through GİB (Gelir İdaresi Başkanlığı) portal. Integration with ERP systems required. Penalties for non-compliance.
7.Annual Financial Statements
All Turkish companies must prepare annual financial statements. Components: balance sheet (bilanço), income statement (gelir tablosu), cash flow statement, statement of changes in equity. Filing with Trade Registry. Independent audit for companies meeting thresholds. Tax returns filed electronically via GİB portal. Statutory books must be notarized annually.
8.Tax Incentives & Free Zones
Turkey offers extensive tax incentives. Free zones (serbest bölgeler): corporate tax exemption, customs duty exemption, profit transfer freedom. Technology development zones (Teknokentler): corporate tax exemption on R&D income. Investment incentive certificates: reduced corporate tax, VAT exemption, customs duty exemption. KOSGEB support for SMEs. TÜBİTAK R&D grants. Regional investment incentives with varying benefits.
Turkish accounting and tax compliance requires expertise in the Tek Düzen Hesap Planı, KDV obligations, SGK declarations, and digital reporting. Astropel provides comprehensive accounting services ensuring full compliance while maximizing tax incentives.