Understanding Turkey’s accounting standards framework is essential for any foreign company operating in the country. Turkey has adopted Turkish Financial Reporting Standards (TFRS), which are aligned with International Financial Reporting Standards (IFRS), ensuring that financial statements are comparable with global practices. This guide covers the accounting standards landscape in Turkey for 2026, including recent regulatory updates and compliance obligations.
Overview of Accounting Standards in Turkey
Turkey operates a multi-tier accounting standards system governed by the Public Oversight, Accounting and Auditing Standards Authority (KGK). The framework includes three main tiers:
TFRS
Türkiye Finansal Raporlama Standartları
The full set of Turkish Financial Reporting Standards, aligned with IFRS. Mandatory for public interest entities including publicly traded companies, banks, insurance companies, and other financial institutions.
BOBİ FRS
Large & Medium Companies
A simplified accrual-based framework designed for large and medium-sized non-public companies that are subject to statutory audit. Provides a middle ground between full TFRS and basic tax accounting.
Uniform Chart of Accounts
Tekdüzen Hesap Planı
The statutory bookkeeping standard mandatory for all companies for tax reporting purposes. Every company in Turkey must maintain its books according to this chart, regardless of size or ownership structure.
TFRS vs IFRS: Key Differences
TFRS is essentially the Turkish translation of IFRS with some local interpretations. The KGK translates and adopts each IFRS standard, issuing it as a corresponding TFRS standard. In substance, a company applying TFRS is also compliant with IFRS. However, there are minor differences in implementation guidance and transition provisions specific to the Turkish market.
2026 IFRS Amendments Coming Into Effect
For 2026, key IFRS amendments coming into effect include changes to IFRS 9 and IFRS 7 regarding classification and measurement of financial instruments, as well as Annual Improvements to IFRS (Volume 11). These amendments will be reflected in the corresponding TFRS updates published by the KGK.
| Aspect | TFRS | IFRS |
|---|---|---|
| Governing Body | KGK (Public Oversight Authority) | IASB (International Accounting Standards Board) |
| Language | Turkish (official), English (reference) | English (official) |
| Applicability | Public interest entities in Turkey | Globally adopted jurisdictions |
| Substance | Aligned with IFRS (Turkish translation) | Original standards |
| Local Additions | Implementation guidance for Turkish market | None (jurisdiction-neutral) |
Statutory Books and Tax Reporting
All companies in Turkey, regardless of whether they apply TFRS or BOBİ FRS for financial reporting, must maintain their books according to the Uniform Chart of Accounts and the Turkish Tax Procedure Law (VUK). This dual-reporting requirement is important for foreign companies to understand:
VUK-Based Books
Used for tax calculations and reporting to the Revenue Administration. All tax declarations, withholding calculations, and VAT returns are prepared based on VUK-compliant books. This is the primary accounting obligation for every Turkish company.
TFRS / BOBİ FRS Statements
Used for financial reporting, statutory audits, and group consolidation. Companies subject to statutory audit must prepare separate financial statements under TFRS or BOBİ FRS in addition to their VUK-based books.
E-Ledger (e-Defter)
Electronic general ledger mandatory for companies above revenue thresholds. The e-Ledger system requires digital record-keeping through the Revenue Administration’s infrastructure, with monthly submissions signed with electronic certificates.
E-Invoice (e-Fatura)
Electronic invoicing required for most commercial companies. Turkey’s e-Invoice system is one of the most advanced in the world, mandating structured electronic invoices exchanged through registered integrators.
Dual Reporting: Key Takeaway
Foreign companies must understand that maintaining VUK-compliant books is a non-negotiable legal requirement in Turkey, even if their parent company requires IFRS-aligned financial statements. Both sets of records must be maintained simultaneously, and the VUK books serve as the basis for all tax obligations.
Mandatory CPA Requirement
All companies in Turkey must appoint a local Certified Public Accountant (SMMM — Serbest Muhasebeci Mali Müşavir) who is responsible for the following:
- Tax Return Preparation: Preparing and signing monthly VAT returns, withholding tax declarations, stamp tax returns, and annual corporate income tax returns
- Statutory Book Maintenance: Maintaining the general ledger, journal entries, and subsidiary ledgers in accordance with the Uniform Chart of Accounts
- Monthly/Annual Filings: Filing all periodic declarations and notifications with the Revenue Administration and Social Security Institution
- Regulatory Compliance: Ensuring compliance with VUK (Tax Procedure Law), KGK (Accounting Standards), and other regulatory requirements
Legal Requirement — Not Optional
This is a legal requirement — companies cannot file tax returns without a licensed CPA’s signature. Foreign companies establishing a presence in Turkey must engage a local CPA firm from the very first day of operations. For details on our CPA services, visit our bookkeeping services page.
Statutory Audit Requirements
Statutory audit by an independent audit firm is mandatory for companies meeting certain size criteria. Companies subject to audit must apply either TFRS or BOBİ FRS. The KGK determines the audit thresholds, which are reviewed periodically.
2026 Statutory Audit Thresholds
Companies exceeding two of the following three criteria are subject to mandatory statutory audit:
Companies that exceed two out of these three thresholds must engage an independent audit firm registered with the KGK. The audit must be conducted in accordance with Turkish Auditing Standards (TDS), which are aligned with International Standards on Auditing (ISA).
Sustainability Reporting (New)
Since January 2024, Turkey has adopted TSRS 1 and TSRS 2, which are translations of IFRS S1 (General Requirements for Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures).
TSRS 1 — General Requirements
Based on IFRS S1, this standard requires companies to disclose information about sustainability-related risks and opportunities that could reasonably affect cash flows, access to finance, or cost of capital over the short, medium, and long term.
TSRS 2 — Climate-related Disclosures
Based on IFRS S2, this standard focuses specifically on climate-related risks and opportunities. It requires disclosure of governance, strategy, risk management, and metrics related to climate change impacts on the company.
Expanding Scope
While initially applicable to larger public companies, the scope of sustainability reporting is expected to expand in the coming years. Foreign companies with Turkish subsidiaries should proactively prepare for these requirements, particularly if their parent company already reports under IFRS Sustainability Standards or the EU CSRD.
Turkey Accounting Standards: Quick Reference
| Requirement | Applicable To | Standard / Framework | Regulator |
|---|---|---|---|
| Statutory Bookkeeping | All companies | VUK + Uniform Chart of Accounts | Revenue Administration (GİB) |
| Financial Reporting (Full) | Public interest entities | TFRS (aligned with IFRS) | KGK |
| Financial Reporting (Simplified) | Audited non-public companies | BOBİ FRS | KGK |
| Statutory Audit | Companies exceeding thresholds | TDS (aligned with ISA) | KGK |
| E-Ledger & E-Invoice | Companies above revenue limits | GİB e-Defter / e-Fatura | Revenue Administration (GİB) |
| CPA Appointment | All companies | SMMM engagement | TÜRMOB |
| Sustainability Reporting | Large public companies (expanding) | TSRS 1 & TSRS 2 | KGK |
Celikel CPA — Your Accounting Partner in Turkey
At Celikel CPA, we provide comprehensive accounting services for foreign companies operating in Turkey. Our services cover every aspect of Turkish accounting compliance:
- Turkish Statutory Bookkeeping: Full VUK-compliant bookkeeping using the Uniform Chart of Accounts, including general ledger maintenance and journal entry processing
- TFRS / IFRS Financial Statements: Preparation of financial statements under TFRS for companies subject to statutory audit or parent company consolidation requirements
- E-Invoice & E-Ledger Setup: Complete setup and ongoing management of Turkey’s mandatory electronic invoicing and ledger systems
- Monthly & Annual Tax Returns: Preparation, filing, and signing of all periodic tax declarations including VAT, withholding, stamp tax, and corporate income tax
- Liaison with Statutory Auditors: Coordination with independent audit firms for companies subject to mandatory statutory audit
