Turkey to impose minimum corporate and income taxes

Turkey has finished work on a proposed new economic reform plan, which includes a minimum corporate and income tax to increase the take from direct taxes.

The package, which will be submitted to the parliament soon, proposes a minimum 15 percent corporate tax on multi-national companies with more than €750 million ($804 million) in annual consolidated revenue, state-owned Anadolu Agency reported.

“We will strengthen justice in taxes with regulations aimed at increasing the share of direct taxes,” Mehmet Şimşek, the finance minister, said in a post on social messaging platform X.

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He said that the package is expected to be discussed “soon” in parliament.

Additionally, corporate tax on companies which run public-private partnership projects under build-operate-transfer structures will rise to 30 percent from 25 percent under the new plan.

A minimum income tax model will also be introduced for commercial and agricultural entities and earnings from self-employment, the report said.

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Earlier this month Turkey announced plans to tax income earned from cryptocurrency and stock market trades.

The measures were part of a package unveiled by Şimşek at a gathering of senior officials of the ruling Justice and Development Party on June 4.

In May, the Turkish central bank said it will maintain a tight monetary stance until a “significant and sustained” decline in monthly inflation is seen.

The bank’s monetary policy committee kept the main policy rate steady at 50 percent, adding it remains “highly attentive to inflation risks”.