Withholding Tax in Turkey: Stopaj Guide

“Stoppage tax” usually refers to Turkish withholding tax, or stopaj / tevkifat. The payer deducts tax from a payment when the law requires it, declares the amount and remits it to the Revenue Administration on behalf of the recipient.

There is no single stoppage-tax rate. The result depends on the payment type, recipient, tax-residence status, legal form, applicable presidential decision and any double taxation agreement. Review the treatment before making or booking the payment.

Which payments can create withholding tax?

Common categories include:

• employment income and payroll;
• workplace rent paid to an individual landlord;
• specified professional or self-employment payments;
• dividends and certain profit distributions;
• interest and similar financial returns;
• royalties and licence payments;
• specified payments to non-residents; and
• construction and repair work extending over more than one calendar year.

This list is not a rate table. Similar commercial descriptions can produce different outcomes depending on the contract and recipient. VAT is a separate tax and should not be described as a type of stoppage tax.

How is withholding calculated?

Start with the gross contractual payment and identify whether the quoted amount is gross or net of withholding. Then determine:

1. the legal payment category;
2. the recipient’s individual or corporate status;
3. whether the recipient is resident or non-resident for Turkish tax purposes;
4. the domestic rate in force on the payment date;
5. whether a treaty can reduce the rate and whether its documentary conditions are met; and
6. whether VAT withholding or another reporting rule applies separately.

A “net payment” clause can shift the economic cost to the payer through gross-up. The contract and invoice should therefore be reviewed together before the amount is released.

Domestic rates and treaty relief

Rates change and are payment-specific. For example, the general domestic withholding rate on qualifying dividends paid to non-residents has been 15% since 22 December 2024, while a relevant tax treaty may reduce that rate if the recipient is eligible and the residence and beneficial-ownership conditions are met.

Treaty relief is not automatic. The payer should obtain and retain the current tax-residence certificate, Turkish translation and any other required evidence before applying a reduced rate. If the file is incomplete, the safer statutory treatment may be to withhold at the domestic rate and assess the available refund route separately.

Filing and payment workflow

The company should maintain a withholding matrix that records the payment type, counterparty, gross amount, applied rate, legal basis, treaty evidence and declaration period. Payroll and other withholding liabilities are reported through the return applicable to the taxpayer’s registered tax types.

Do not rely on a fixed “23rd to 26th” deadline. Filing and payment dates can change and differ by return type and period. Check the Revenue Administration tax calendar for the relevant month.

Records to retain

Keep the contract, invoice or payroll record, payment evidence, rate analysis, tax-residence certificate, translation, beneficial-ownership support and filed return together. Cross-border service and royalty payments may also require a permanent-establishment, VAT, transfer-pricing or customs review.

Common errors

• applying a familiar rate without identifying the recipient and payment category;
• treating VAT withholding and income/corporate withholding as the same obligation;
• paying a net amount without modelling gross-up;
• using treaty relief without a valid residence certificate;
• overlooking withholding on an accrual or payment event under the applicable rule;
• using an old filing date or presidential-decision rate; and
• assuming tax withheld is always refundable to the recipient.

Official sources

• Revenue Administration: live tax calendar
• Revenue Administration: current non-resident withholding table