Withholding Tax (Stopaj) Calculator
Enter the net rent, gross rent or withholding amount to calculate the other two at the 20% rate. The tool calculates withholding only, not VAT.
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Withholding Rate
Current rate (Income Tax Law Art. 94/5-a): 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 is for information only and does not replace tax advice. It applies the 20% rent withholding rate of Article 94 of Turkey's Income Tax Law. Rates vary by income type (for example, rent 20%, freelance receipts 20%, dividends paid to individuals 15%). Check current rates with the Revenue Administration (GİB).
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 must pay rent withholding. The standard commercial 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 pays 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 20%, freelance receipts 20% and dividends paid to individuals 15%. Deposit interest has separate rates that depend on maturity. These rates can be changed by Presidential decree, so check current rates on the Revenue Administration (GİB) website.
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 is using the VAT-inclusive amount as the base; withholding is calculated on the amount excluding VAT. Another frequent error is the wrong net-to-gross formula. The correct formula is Gross = Net ÷ (1 − Withholding Rate). These errors can lead to under-declaration and penalties.