Tax Regime

In 2006 a new corporate tax law was introduced making important amendments and additions to tax legislation in Turkey. As a result the country now has one of the most competitive corporate tax rates of all the OECD member states.

Competitive state royalty, tax and VAT regimes have been welcomed by foreign exploration and development companies already invested in Turkey.  The ongoing government and legislative support has acted as an enabler for new foreign investment and startup operations in Turkey's mining and minerals sector.

In summary, the Turkish tax regime falls under the following groups*:

1.  Corporate income taxes

  • Basic corporate income tax rate levied on business profits is 20%
  • Dividends are subject to 15% tax

 

2.  Value Added Tax (VAT)

Since the new mining legislation in 2006, gold and silver mining companies are effectively exempt from VAT.

3.  Stamp duty

Stamp duty applies to a wide range of documents, including contracts, agreements, notes payable, capital contributions, letters of credit, letters of guarantee, financial statements, and payrolls. Stamp duty is levied as a percentage of the value of the document at rates ranging from 0.165% to 0.825%.

Tax Exemptions and Allowances

Effective VAT legislation of 0% in favour of gold and silver mining.

* Summary data provided by Invest in Turkey for full details click here

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