Turkey Hikes Taxes

September 29, 2017 Taxation in Turkey

Tax hike in TurkeyISTANBUL – The government of Turkey is instituting a range of tax hikes, raising the rate on personal incomes, corporate incomes, car prices, and lotto winnings.

On September 27th, the Naci A?bal of the Ministry of Finance of Turkey announced that the government will seek to introduce a number of new tax hikes in order to boost the national military budget.

If the new changes are approved, the income tax rate faced by businesses in the finance sector will rise from the current rate of 20 percent to a new rate of 22 percent.

Personal income tax will also rise, with the rate on the third income tax bracket rising from 27 percent to 30 percent.

The taxes on motor vehicles will also rise significantly, increasing by 40 percent.

Further, the taxes on cars will see an extra levy charged next year, varying from 10 percent to 20 percent based on the value of the car itself.

The tax rate of gambling winnings will also double to a new rate of 20 percent.

Most of the changes are set to come into effect in 2018.

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