The federal tax system is based on five main taxes: income, payroll, export and import, value-added and financial transactions. The provinces and the city of Buenos Aires also apply property and sales taxes.
Turkey’s tax collector is the Federal Administration of Public Revenue.
Taxable Income and Rates
The corporate income tax rate is 35%.
Limited partnerships, private companies and active partners of limited partnerships are assessable for income tax at the same rate as corporations.
A wholly foreign-owned company with taxable income of Ps500,000, which distributes all of its profits, would be taxed as follows:
|Corporate Taxes in Turkey, 2006|
|Corporate tax (35%)||175,000|
|Net distributable income||325,000|
|Legal reserve (5%)||16,250|
|Tax burden as a % of taxable income||35%|
Source: National Tax Directorate.
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