Minimum corporate tax check: does the 10% floor hit your company?
Compare the standard 25% corporate tax with the 10% domestic minimum tax, see which one applies, what the minimum tax adds and your effective rate.
Since fiscal years starting on 1 January 2025, every Turkish company calculates its corporate tax twice and pays the higher amount: 25% on taxable income after deductions and exemptions, or 10% on corporate income before certain deductions and exemptions. This tool shows which one bites, how much the minimum tax adds, and the effective rate on your profit before tax. Nothing you enter is stored.
Which items go where
According to PwC's summary of the rules, the dividend participation exemption for dividends from Turkish companies, the share premium exemption, the technology development zone exemption and R&D and design allowances also reduce the 10% base, so they keep their full benefit. Enter those in the third field. Most other exemptions, deductions and incentives are ignored when the 10% base is calculated; enter those in the fourth field. Tax losses carried forward and the precise list of items differ by case, so confirm the classification with your tax advisor.
How the tool calculates
- Corporate income = profit before tax + non-deductible expenses.
- Standard tax = rate × (corporate income − all exemptions and deductions), not below zero.
- Minimum tax = 10% × (corporate income − the exemptions in field three), not below zero.
- Tax payable = the higher of the two. Effective rate = tax payable ÷ profit before tax.
The tool ignores special reduced rates (exports, manufacturing, listing), investment incentive certificates and Pillar Two top-up tax. Use it to see whether the minimum tax is likely to apply, then plan provisional tax payments with your advisor.
Sources: PwC Worldwide Tax Summaries, Türkiye, Taxes on corporate income (reviewed 09.09.2026). Last checked 4 November 2026.
For information only; not tax, legal or investment advice. Rules change, so check the official source before acting.