Business taxes in Türkiye: calculator for sole proprietors and companies
Choose a sector, a legal form and a tax system, enter your annual revenue and expenses — the calculator shows every tax and contribution, the total and what you keep.
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Legal forms
Sole proprietorship Şahıs işletmesi (gerçek kişi tacir, esnaf veya serbest meslek erbabı)
You run the business as an individual registered with the tax office: there is no separate legal entity and you are liable for business debts with all your assets.
Requirements
Notify the tax office of the start of activity within 10 days (VUK Art. 168); from that date Bağ-Kur insurance is compulsory (Law 5510, Art. 4/1-b), also under basit usul.
Traders register in the trade register (ticaret sicili); craftspeople and small traders in the craftsmen's register (esnaf ve sanatkâr sicili), with membership of the relevant chamber.
Bookkeeping: professionals keep an income book (serbest meslek kazanç defteri); businesses keep işletme hesabı, or double-entry (bilanço) if purchases exceed TRY 2,500,000, sales TRY 3,500,000 or service revenue TRY 1,200,000.
Selling goods to consumers requires a cash register (ödeme kaydedici cihaz, Law 3100). The annual income tax return is filed 1–25 March of the following year.
Sole proprietorŞahıs işletmesi — gerçek usul (serbest meslek kazancı veya ticari kazanç)
Profit (revenue minus expenses and Bağ-Kur contributions) is taxed at progressive income tax rates of 15–40%. Bağ-Kur contributions are due every month even without profit.
Conditions
Registration with the tax office and SGK from the first day of activity; no revenue limit. VAT (KDV) applies from the first sale, there is no exemption threshold; VAT is not included in the calculation.
Business clients withhold 20% tax from fees (stopaj); it is an advance credited in the annual return (filed 1–25 March of the following year).
If the activity is organised as a commercial business (ticari kazanç), the tax rates and Bağ-Kur are the same; only the bookkeeping differs.
Trade, crafts and manufacturing (ticari kazanç) with a small turnover can use basit usul — see the separate form; IT and professional services are gerçek usul only.
Sole proprietorŞahıs işletmesi — genç girişimcilerde kazanç istisnası (GVK mük. md. 20)
Same as a sole proprietor, but for the first three years profit up to TRY 400,000 a year is exempt from income tax. Bağ-Kur contributions are still due.
Conditions
Only if you are under 29 on registration and this is your first registration for commercial, agricultural or professional income; the business is not taken over from relatives. Applies to the start year and the next two.
Calculated without Bağ-Kur support. The young-entrepreneur Bağ-Kur premium support (Law 5510, Art. 81/1-k) was repealed by Law 7566, Art. 23 (4.12.2025) and is no longer available for new registrations; whether it continues for those who started before the repeal, and the exact effective date, have not been verified.
Sole proprietorŞahıs işletmesi — basit usulde ticari kazanç (GVK md. 46–48, kazanç istisnası mük. md. 20/A)
Small traders and craftspeople working in their own business: profit is exempt from income tax (GVK repeated Art. 20/A) and sales carry no VAT. You pay only Bağ-Kur — every month, even without profit.
Conditions
2026 limits: trade and manufacturing — purchases up to TRY 1,200,000 and sales up to TRY 1,900,000 (purchases = expenses in the calculation); services — revenue up to TRY 600,000; combined — up to TRY 1,200,000. Annual rent of premises up to TRY 99,000 in metropolitan cities (büyükşehir) and TRY 60,000 elsewhere.
From 1 January 2026, in the 30 provinces with a metropolitan municipality (büyükşehir belediyesi), in districts with more than 30,000 inhabitants, manufacturing, trade in goods (except street and market trading), construction, car repair, restaurants and entertainment venues were moved to gerçek usul. The calculation assumes you work outside these districts.
You must work in the business yourself; basit usul is not available for professional services, advertising, intermediation, jewellers and other activities listed in GVK Art. 51. Purchase and sales documents are kept, and the chamber's bureau keeps the records.
An individual working without separate premises within the limits of GVK Art. 9 is exempt from income tax and is not registered as a taxpayer. For goods made at home and sold online, the bank withholds 4% of receipts.
Requirements
For selling home-made goods online (GVK Art. 9/10): an exemption certificate (Esnaf Vergi Muafiyeti Belgesi) from the tax office and a separate commercial account with a Turkish bank; all revenue must go through it.
Production at home, without separate premises and without industrial or serial-production machinery; 2026 revenue up to TRY 1,900,000, otherwise gerçek usul from the following year.
Keep documents for purchases and expenses received from taxpayers. Sales by an exempt craftsperson carry no VAT (KDVK Art. 17/4-a).
Bağ-Kur does not arise automatically: it is compulsory only for exempt craftspeople entered in the craftsmen's register (esnaf ve sanatkâr sicili).
Sole proprietorVergiden muaf esnaf — evde imal edilen malların internet üzerinden satışı (GVK md. 9/10)
Goods made at home and sold online: the bank withholds 4% of every payment into the commercial account — that is the whole tax; there is no return and no VAT.
Conditions
Only for production at home without separate premises or industrial or serial-production machinery; 2026 revenue up to TRY 1,900,000. An Esnaf Vergi Muafiyeti Belgesi certificate and a separate commercial account are required.
With an employee the withholding rate is 2% (if the employee works at least 10 days in the month). Bağ-Kur is not included: it is compulsory only if you are entered in the craftsmen's register (esnaf ve sanatkâr sicili).
Limited company (Ltd. Şti.) Limited şirket (tek ortaklı)
A company with 1–50 partners; it can be founded by one person. The company pays 25% corporate tax; the partner pays Bağ-Kur personally.
Requirements
The articles are signed at the trade registry (ticaret sicili); minimum capital is TRY 50,000; unlike a joint-stock company, 25% of the cash capital need not be paid before registration.
A company with one partner is registered and announced as single-partner (partner's name, address and citizenship) within 7 days.
Companies keep double-entry books (bilanço esası); the corporate tax return is filed 1–25 April of the following year.
The company pays 25% corporate tax. Dividends are subject to 15% withholding; half of the dividend is exempt, and if the other half exceeds TRY 400,000 it is declared at the 15–40% scale with the withholding credited. As a partner of a limited company the owner pays Bağ-Kur personally.
Conditions
A limited company partner is compulsorily insured with Bağ-Kur (Law 5510, Art. 4/1-b) even without salary; the contribution is personal, not a company expense.
The company is liable for VAT (KDV) from the first sale; VAT is not included in the calculation. Articles of association, paid-in capital and double-entry bookkeeping are required.
Software development, IT services, consulting for companies and entrepreneurs.
Software development and consulting are serbest meslek (GVK Art. 65): gerçek usul only; basit usul is not available. Corporate clients withhold 20% of fees — an advance on the tax.
Young entrepreneur relief (under 29, first registration): profit up to TRY 400,000 a year is exempt for 3 years.
VAT (KDV) applies from the first sale with no exemption threshold; records are kept in an income book (serbest meslek kazanç defteri).
Other business services draft — data being checked
Marketing, design, translation, engineering, bookkeeping and other professional services to companies.
Design, translation, engineering and bookkeeping are serbest meslek: the same rules as for IT (gerçek usul, 20% withholding). Advertising is expressly excluded from basit usul (GVK Art. 51/6).
Bağ-Kur is at least TRY 10,156.73 a month (with the 5-point discount) even without income; VAT applies from the first sale.
Services to individuals draft — data being checked
Household services, repairs, beauty, tutoring, photography — for private customers.
Hairdressers, repairs and household services are ticari kazanç: basit usul if revenue ≤ TRY 600,000 (2026), rent ≤ TRY 99,000 / 60,000 and you work in the business yourself; profit is tax-free and VAT-free, Bağ-Kur remains.
Car repair in districts with more than 30,000 inhabitants of the 30 metropolitan provinces is gerçek usul only from 2026.
Small craftspeople without premises who work at the customer's place (barber, shoe repairer, photographer, locksmith, etc.) are tax-exempt (GVK Art. 9/2) with an Esnaf Muaflığı Belgesi from the municipality; if entered in the craftsmen's register they pay Bağ-Kur.
Trade in goods draft — data being checked
Retail and wholesale, including an online shop (excluding excise goods).
Basit usul for trade: purchases ≤ TRY 1,200,000 and sales ≤ TRY 1,900,000 (2026). But from 1.1.2026, in districts with more than 30,000 inhabitants of the 30 metropolitan provinces, trade in goods (except street and market trading) is gerçek usul only.
Selling goods requires a cash register (ödeme kaydedici cihaz, Law 3100). Bookkeeping: işletme hesabı up to purchases of TRY 2,500,000 / sales of TRY 3,500,000, above that bilanço.
Street trading without premises and without a motor vehicle can be tax-exempt as esnaf muaf (GVK Art. 9/1), except for clothing, valuable goods and market trading in groceries.
Manufacturing draft — data being checked
Making and selling your own products: food, furniture, clothing, handmade goods.
Goods made at home without separate premises or industrial machinery and sold online are exempt (GVK Art. 9/10): the bank withholds 4% of receipts (2% with an employee); the 2026 limit is TRY 1,900,000.
A workshop: basit usul with the same limits as trade (purchases ≤ TRY 1,200,000, sales ≤ TRY 1,900,000), but in districts with more than 30,000 inhabitants of the 30 metropolitan provinces, manufacturing is gerçek usul only from 2026.
Traditional crafts (hand weaving, copperwork, ceramics, wood carving, etc.) where the maker sells their own products are tax-exempt (GVK Art. 9/8).
Assumptions
One owner, resident of Türkiye, no employees, no other income, no children, full year 2026.
Bağ-Kur on the minimum base (TRY 33,030 a month) at 35.75% minus the 5-point discount for timely payment without arrears: TRY 10,156.73 a month.
For the sole proprietor Bağ-Kur contributions are deducted from profit as an expense. Income tax uses the 2026 scale for non-wage income.
For the company: the owner takes no salary; profit after tax is either paid out in full as dividends or kept in the company. Dividends below the filing threshold bear only the 15% withholding.
Not included: VAT, stamp duty on the return, the 5% compliant-taxpayer discount (GVK repeated Art. 121), local fees.
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