Although we are an accounting firm in Istanbul, we offer our accounting services
throughout Turkey by understanding our clients' needs and expectations. As a certified
public accounting firm our services include payroll, tax advisory, a long with
accounting services that target to maximize the efficiency of our foreign clients'
- Tax Return
- Outsource Payroll
- Financial Reporting
- Tax Advisory
- Financial Consultancy
MersinCPA Services For the Foreign Investors
Foreign entrepreneurs who are looking to set up a business in Turkey need rapid
solutions. MersinCPA specializes in assisting these clients by providing a full range
of accounting services, allowing our clients to focus on more important aspects of
running a company. Having a varied client base, we are able to service all of your
accounting needs in Turkey. We have been helping many different kinds of foreign
entrepreneurs that look for an accountant in Istanbul or throughout Turkey.
As a part of its business MersinCPA offers bookkeeping services in Turkey with
its well trained staff. Journal ledger, inventory ledger and general ledger management
is fulfilled by us in accordance with Turkish law and regulations. Financial statements
can be prepared based on the management of these ledgers.
VAT Refund in Turkey
As a certified public accounting firm in Turkey, we offer Value Added Tax refund services
for both foreign and domestic companies. With our VAT refund services in Turkey foreign
investors eliminate complex procedures, making their business easier.Exportation of goods and services,
Exemption for vehicles, petroleum exploration and investments made under an investment
incentive certificate (IIC),
Diplomatic exemption are deducted from the output VAT to be calculated on the transactions
of the taxpayer which are subject to VAT. In the absence of transactions subject to VAT,
or if the output VAT is less than the input VAT, then the input VAT which cannot be deducted
is refunded to those who perform such transactions, on the basis of principles to be
determined by the Ministry of Finance.
A) DIRECT TAXES
Value Added Tax (VAT) shown on invoices and similar documents related to the transactions
which are exempt from the tax, such as:
The Turkish taxation system contains two main direct taxes; income tax and corporate tax.
Individuals are subject to income tax on their income and earnings. Companies are subject to
corporate tax on their income and earnings.
1) INCOME TAX
Wages and salaries
Income from independent professional services
Income from immovable property and rights (rental income)
Income from movable property (income from capital investment)
Other income and earnings without considering the source of income
b) Tax Liability
a) Taxation of Income Income tax is levied on the income of individuals.
Partnerships are not accepted separately and each partner is taxed individually on
their shares. An individual’s income may contain one or more of the income
items listed below:
An individual who is a resident of Turkey is liable to pay for his income worldwide;
meaning unlimited liability. A person who stays in Turkey more than six months in a
(calendar year) is accepted as a resident of Turkey. On the other hand, a person who
stays in Turkey for six months or more for a specific job, business or special purpose
is not as a resident. For this reason unlimited tax liability is not applied to them.
c) Income Types
An individual needs to have a permanent establishment or representative in Turkey, income
must be earned through the business and carried out by the establishment or representatives.
The taxable income of a business enterprise is the difference between its net assets at the
beginning and at the end of a calendar year.
Wages and salaries
Employees are subject to income tax. The income contains employee’s salaries and wages as
well as associated supplementaries such as allowances, bonuses, commissions, premiums,
compensations, etc. They are all subject to income tax.
Income tax rates applied for wages and salaries are as follows:
15% up to 11,000 TL
20% up to 27,000 TL
27% up to 60,000 TL
35% more than 97,000 TL
• Income from independent professional services
Independent professional services means the activity which is done by a person who
is self-employed. It includes services of lawyers, doctors, accountants, consultants
and engineers. These independent professionals need to get an the “acceptance certificate”
for their degree obtained abroad from an the Turkish Council of Higher Education.
• Agricultural incomes
Income derived from agricultural activities are subject to income tax. It contains activities
are done on which land, sea, rivers and lakes in forms of cultivating, planting, breeding,
fishing, hunting, etc
• Income from immovable property
• Immovable property includes land, buildings and permanent leaseholders rights.
Trucks, boats, aircrafts and other transportation vehicles are accepted as immovable property.
Rental income from them is subjected to income tax.
• Income from movable property
• Interest, dividend, rent, capital in cash, capital in kind are included in income from
movable property and are subjected to income tax.
2) CORPORATE TAX
a) Taxation of Income
Corporate tax is levied on the income and earnings arising from corporation activities.
Companies which are subject to corporate tax are listed below:
Capital companies and similar companies
Enterprises owned by foundations, societies and associations
b) Tax Liability
Corporations, which have their legal headquarters located in Turkey or effective management
placed in Turkey, are taxed on their income worldwide. They are subjected to unlimited
c) Net Taxable Income
Net income is defined as the difference between the net worth of an asset owned at the
beginning and end of a fiscal year. Expenses in Income Tax Law article 40, are allowed to be
deducted from revenue. The following expenses may also be deducted in order to determine
the tax base:
Expenses related to the issuance of stock and shares
Initial organization and establishment expenses
Expenses incurred for general board meetings, expenses made during mergers, dissolutions
In the case of insurance companies, technical reserves required for the insurance contract
still valid at date of inventory
Profit shares accrued to partners by participation banks for participation accounts
Profit shares accrued to active partners of partnerships in commendams limited by shares
Research and development deductions calculated as 40% of new technology and the research
expenses realized within business
d) Corporate Tax Return
Every taxpayer must file only one tax return, including corporations. The corporate tax
return must be filed by the 25th of the fourth month following the end of the fiscal year
and assessed taxes are paid until the end of that month. In Turkey the corporate tax rate
is 20% of corporate earnings.
B) INDIRECT TAXES
1. Value Added Tax (VAT) In Turkey, VAT is the most important indirect tax.
VAT is levied on the supply and importation of goods and services. VAT is applied in
different rates of 1%, 8% and 18%. The payment of VAT is made by the 26th of the
following month after the current month.
2. Stamp Tax
Stamp tax is applied for documents such as agreements, contracts, financial statements,
payroll, letter of guarantee, etc. Stamp tax is levied as a percentage of value on the
3. Motor Vehicle Tax
4. Banking and Insurance Transactions Tax
5. Property Tax
6. Communication Tax
7. Customs Tax
8. Inheritance Tax
9. Gambling Tax
10. Special Consumption Tax