Self-Employed Tax in Turkey

Turkey taxes self-employed income through two distinct frameworks: serbest meslek (professional services) for lawyers, engineers, architects, accountants, physicians, and consultants; and the esnaf / tradesman path for artisans and small shopkeepers. Both ultimately feed into the same progressive personal income tax schedule, but the bookkeeping method, withholding mechanics, and compliance obligations differ materially. Consulting a qualified tax professional before registering your activity category is the most consequential early step a new self-employed taxpayer in Turkey can take.

What income tax rates apply to self-employed professionals in Turkey for 2026?

For 2026, the Gelir Idaresi Baskanligi (GIB) publishes two progressive schedules under Income Tax General Communique No. 332 (issued 31 December 2025). Salaried employees and self-employed professionals share the 15% to 40% rate structure, but the thresholds at which the 27% and 35% bands kick in differ. Self-employed (serbest meslek and commercial) income enters the 27% band at TRY 400,001 and the 35% band at TRY 1,000,001 -- one rung lower than the TRY 1,500,001 threshold used for employment income at the same 35% rate. The top band of 40% begins above TRY 5,300,001 for all income types. Annual income tax returns (beyanname) for the 2026 tax year must be filed by 31 March 2027 through GIB's e-Beyanname portal; no extensions are available. Annual tax liability above the amount already collected via stopaj is paid in two equal instalments at the end of March and July following the return year. Explore all Turkey jurisdiction pages to compare obligations across income categories.

How does payer withholding (stopaj) work for serbest meslek receipts?

When a registered business or institution pays a serbest meslek professional, it withholds income tax at source at a rate of 20% of the gross fee. The professional receives the net amount; the payer remits the withheld tax directly to the tax office. This stopaj is credited against the professional's annual income tax liability when the beyanname is filed, so it functions as a prepayment rather than a final tax. Self-employed professionals who issue serbest meslek makbuzu (professional receipts) to natural persons or unregistered buyers who cannot deduct stopaj must set aside the equivalent amount themselves and settle it through gecici vergi (provisional advance tax) quarterly instalments. GIB's 2025 Guide for Self-Employed Professionals confirms the 20% stopaj rate remains in force for 2025 and 2026.

What are the basit usul and gercek usul bookkeeping regimes, and who qualifies for the esnaf muafiyeti exemption?

Artisans and small tradespeople can operate under one of three tax positions depending on scale. The esnaf muafiyeti (small-tradesman exemption) removes income tax liability entirely for micro-operators -- home producers using personal handiwork, mobile vendors, small repairers -- provided they do not exceed the annual revenue limits published each year. For 2025 those limits are TRY 1,580,000 for online-only sellers and TRY 312,066 for the online component of mixed-channel operators. Exempt sellers must open a dedicated commercial bank account; the bank deducts withholding tax automatically (4% for general online sales, 2% for home-produced textiles, 5%-10% for physical-channel goods and services depending on category). This withholding is the final tax -- no annual return is required. The exemption does not eliminate Bag-Kur obligations.

Tradespeople above the exemption thresholds who meet GIB criteria choose between basit usul (simplified method) -- available to qualifying small artisans with limited annual turnover and no motor vehicle used for business -- and gercek usul (actual method), which requires full double-entry bookkeeping, VAT registration, and quarterly provisional tax. Serbest meslek professionals (lawyers, engineers, physicians) always operate under the actual method; basit usul is not available to them. Basit usul filers benefit from a full income tax exemption on their net profit, introduced to support small artisans, and are not required to keep VAT records for most supplies, though they remain subject to income tax return filing.

How does Bag-Kur (Article 4/b) social security apply to self-employed individuals?

All self-employed professionals and tradespeople operating under the gercek usul or serbest meslek framework must register with the Social Security Institution (SGK) as Article 4/1-b (Bag-Kur) insured persons within 15 days of beginning activity. Unlike employed workers (Article 4/1-a), Bag-Kur members bear the entire contribution themselves -- there is no employer share. The total contribution rate for 2026 is 35.75% of the chosen monthly premium base. Insured persons select a daily earnings base anywhere between TRY 1,101 (monthly TRY 33,030, yielding a monthly premium of approximately TRY 11,808) and TRY 9,909 per day (monthly TRY 297,270, premium approximately TRY 106,274). A timely-payment discount reduces the minimum-base monthly premium to approximately TRY 10,157 for members who pay by the due date each month. The premium funds retirement pension, general health insurance (GSS), short-term disability, maternity, and death benefits. Unemployment insurance does not apply to Bag-Kur members. Esnaf muafiyeti holders may enrol voluntarily but are not required to do so.

Starting 2026, the one-year Bag-Kur premium support previously available to young entrepreneurs was discontinued (Official Gazette, 19 December 2025). New registrants after that date cover their own premiums from month one.

What VAT (KDV) registration and withholding obligations apply?

Turkey operates a KDV (Katma Deger Vergisi) system with no registration threshold: every person or entity that commences a taxable economic activity must register and file from the first day of business, regardless of revenue. The standard KDV rate is 20% (raised from 18% on 10 July 2023); a 10% reduced rate applies to certain food and agricultural supplies, and a 1% super-reduced rate to basic necessities. Serbest meslek professionals charge 20% KDV on their service fees and remit it monthly via the e-Beyanname portal, with the return due by the 28th of the following month. Input KDV paid on business purchases offsets output KDV due.

A partial reverse-charge (tevkifat) mechanism applies to certain domestic B2B professional services: the business recipient withholds a defined fraction of the KDV (typically one-half to two-thirds of the KDV amount) and remits it directly to the tax office, while the supplier remits only the remaining portion. Serbest meslek professionals must track which invoices fall within the tevkifat schedule. Services exported to genuinely foreign-resident clients may be zero-rated under KDV Law No. 3065, Articles 11-12, subject to documentary proof that the benefit of the service is consumed outside Turkey. For digital and cross-border positioning, see Turkey tax treaty relief for the treaty network context.

Who qualifies for the young-entrepreneur income tax exemption?

Article 89 of the Income Tax Law provides a young-entrepreneur exemption for individuals aged 18 to 29 who register their first tax liability from a commercial, agricultural, or self-employed professional activity. For 2026 the annual exemption amount is TRY 430,000, revalued from TRY 330,000 in 2025 to reflect inflation indexing. The exemption covers three consecutive tax periods from the year operations commence. It applies to income tax only -- stopaj withheld during the year still applies, and Bag-Kur premiums are fully payable from 2026 onward. The taxpayer must notify GIB within 10 days of commencement, must actively participate in or direct the business, and cannot take over an existing business from a spouse or close relative or subsequently become a partner in an existing enterprise. Any quarter's gecici vergi (provisional tax) instalments are still computed, but the annual return reflects the exemption, producing a refund or reduced balance.

How does gecici vergi (provisional advance tax) operate for self-employed filers?

Self-employed individuals with commercial or professional income pay gecici vergi at 15% of cumulative net profit at the end of each quarter (Q1, Q2, Q3 -- the fourth quarter is not declared separately; it is settled with the annual return). The declaration and payment deadline is the 17th day of the second month following each quarter: Q1 (January-March) by 17 May; Q2 (January-June) by 17 August; Q3 (January-September) by 17 November. Each instalment is cumulative and offsets the previous one, so only the incremental tax on the new quarter's profit is paid each period. The quarterly stopaj already withheld by payers reduces the gecici vergi due. Any overpayment at year-end is refunded or applied to future periods. Missing a gecici vergi deadline triggers late-payment interest (currently denominated in TRY) that compounds quickly given Turkey's interest-rate environment; prompt filing and payment substantially reduces exposure.

2026 Self-Employed Income Tax Brackets at a Glance

Source: GIB Income Tax General Communique No. 332, December 2025. The 27% threshold for self-employed (TRY 400,001) differs from the employment-income threshold (TRY 400,001 to TRY 1,500,000 at 27%). Confirm current-year thresholds via gib.gov.tr before filing.

The three pillars above represent the core cost stack for most Turkish serbest meslek professionals. Heights are illustrative of relative rate magnitude, not proportional to TRY amounts. Bring your figures to a qualified tax professional for a precise combined-burden estimate.