Turkish law exempts the following forms of income from tax:
- Profits from private pension funds, up to a limit.
- For individuals income from sale of Turkish shares held for 1-2 years subject to terms.
- For individuals, income from sale of immovable property held for 5 years or more.
- For companies, dividend paid by a resident company to a Turkish company.
- Under certain terms dividend received from a nonresident company may be tax exempt too.
Turkey Tax Relief
- Undocumented expenses paid in foreign currency abroad, up to 0.5% of gross income.
- Bad debts, subject to certain conditions.
- Donations to certain organisations, up to 5% of taxable income.
- Medical expenses made by employees.
Note: Previous update by "Independent Accountants, July 2009.