Withholding Tax (Stopaj) Calculator
Calculate Turkey withholding tax (Stopaj) for commercial rent and freelance/self-employment receipts. Convert gross to net or net to gross.
Withholding Rate
Current rate (as of 2023): %20
Mode
NOTE: Net rent is what the tenant pays the landlord. Gross rent is the sum of withholding tax paid to the state plus the net rent.
This tool reflects Turkey withholding tax (Stopaj) rates per the Income Tax Law and Corporate Tax Law. Rates vary by income type (rent: 20%, freelance/self-employment: 20%, dividends: 10%, deposit interest: 15%). Informational purposes only.
What Is Stopaj (Turkey Withholding Tax)?
Stopaj is Turkey's withholding tax mechanism. Income tax or corporate tax is deducted at source, before the income reaches the recipient, and remitted directly to the state. The system speeds up tax collection, secures revenue, and reduces evasion. The amount withheld is offset against the recipient's total annual tax liability.
Commercial Rent Withholding: Calculation Method
Companies and tradespeople renting a shop or office are liable for rent withholding. The standard commercial rent withholding rate is 20%. If you agreed on a net rent of 20,000 TRY with the landlord, divide by 0.80 to find the gross (20,000 / 0.80 = 25,000 TRY). The 5,000 TRY difference is the withholding tax the tenant remits to the state.
Freelance Receipt (SMM): Withholding and VAT
Lawyers, accountants, software developers, and consultants issue a freelance receipt (Serbest Meslek Makbuzu, SMM) when providing services. The receipt typically applies 20% withholding and 20% VAT. VAT is added on top of the gross amount, increasing the invoice; withholding is deducted from the gross, reducing what the freelancer ultimately receives.
Who Pays Rent Withholding and When Is It Declared?
The most common mistake about rent withholding is assuming the landlord pays it. In fact, declaring and paying the tax is entirely the tenant business's responsibility, whether a company or sole proprietor. The landlord's only duty is filing an income tax return at year end if the income exceeds the exemption threshold.
Payment to the Tax Office via Muhtasar Declaration
Withheld taxes are declared and paid to the state monthly or quarterly through the Muhtasar Beyanname (withholding declaration), depending on the business's employee count and arrangement with the tax office. A tenant who fails to file or files incompletely faces tax loss penalties.
Withholding Tax Rates: Summary by Income Type
Withholding tax rates in Turkey vary by income type. Commercial rent withholding is 20%, freelance receipt withholding is 20%, dividend withholding is 10% and deposit interest withholding is 15%. These rates can be changed by Presidential decree; verifying current rates on the Revenue Administration (GİB) website is always recommended.
Withholding Return Periods and Deadlines
Withholding taxes are declared via the muhtasar return on a monthly or quarterly basis depending on employee count. For monthly filers the deadline is the 26th of the following month; for quarterly filers it is the 26th of the month after the quarter ends. Failing to file on time results in tax loss penalties.
Common Mistakes When Determining the Withholding Base
The most common mistake in withholding calculation is using the VAT-inclusive amount as the base. Withholding must be calculated on the net amount excluding VAT. Another frequent error is using the wrong formula for net-to-gross conversion. The correct formula is: Gross = Net / (1 - Withholding Rate). Missing this distinction can lead to under-declaration and penalties.