Turkey

Turkey's Rankings
CategoryRankScore
Overall Rank1368.99
Corporate Taxes1857.49
Individual Taxes786.75
Consumption Taxes2067.2
Property Taxes1863.16
International Tax Rules1678

Turkey ranks 13th overall on the 2019 International Tax Competitiveness Index, three places better than in 2018.


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 17.5 percent, below the OECD average (23.8 percent).
  • Turkey has better-than-average tax treatment of business investment in machinery.

Weaknesses

  • 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.

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