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Turkey — Business: Sole Proprietorship

How the Turkish tax guide treats individual business income: business profits and independent professional income fall under personal income tax, with VAT on commercial and professional supplies. The guide does not describe sole-proprietor registration steps.

VerifiedGovernment / official sourceInvest in Türkiye – Tax GuideLast reviewed: 2026-10-27

Key facts

  • The guide lists business profits and income from independent personal services as income elements subject to personal income tax.
  • It states that individual income tax rates vary from 15% to 40% and are progressive.
  • Non-employment income brackets: 15%, 20%, 27%, 35% and 40%, with thresholds at TRY 110,000, 230,000, 580,000 and 3,000,000 (the page gives no year for this table).
  • It states the generally applied VAT rates are 1%, 10% and 20%.
  • VAT covers commercial, industrial, agricultural and independent professional goods and services, and imports.
  • The page does not explain sole-proprietor classification, deductions, or filing rules; confirm registration steps with the Revenue Administration (gib.gov.tr) or a tax adviser.

Steps

  1. Step 1: Choose Business Name — Business name must be unique and comply with Turkish laws. Exact requirements uncertain.
  2. Step 2: Obtain Required Documents — Type of documents needed uncertain, but typically include identification and business registration documents.
  3. Step 3: Register with Tax Authorities — Registration process and fees uncertain. Taxes and tax rates vary by business type and income level.

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