|International Tax Rules||16||78|
Turkey ranks 13th overall on the 2019 International Tax Competitiveness Index, three places better than in 2018.
- Turkey has a territorial tax system exempting foreign dividends and capital gains income without any country limitations.
- The personal income tax on dividends is 17.5 percent, below the OECD average (23.8 percent).
- Turkey has better-than-average tax treatment of business investment in machinery.
- Companies are limited in the amount of net operating losses they can use 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 40 percent of the potential tax base.
- Turkey has multiple distortionary property taxes with separate levies on real estate, estates, and financial transactions.