Turkey
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 17 | 66.7 |
| Corporate Taxes | 26 | 52.93 |
| Individual Taxes | 8 | 77.26 |
| Consumption Taxes | 23 | 64.12 |
| Property Taxes | 22 | 57.98 |
| Crossborder Taxes | 8 | 85.75 |
Turkey ranks 17th overall on the 2021 International Tax Competitiveness Index, seven places worse than in 2020.
Strengths
- Turkey has a territorial tax system exempting foreign dividends and capital gains income without any country limitations.
- The personal income tax on dividends is 20 percent, below the OECD average (23.9 percent).
- Turkey provides an allowance for equity (ACE), addressing the debt bias inherent to the standard corporate income tax.
Weaknesses
- Companies are severely limited in the time period in which they can use net operating losses to offset future profits and are unable to use losses to reduce past taxable income.
- Turkey's VAT rate of 18 percent applies to just a third of the potential tax base.
- Turkey has multiple distortionary property taxes with separate levies on real estate transfers, estates, and financial transactions.
Learn more about the tax system in Turkey