Annual Compliance Requirements for Companies in Turkey

Overview: Compliance Calendar for Turkish Companies

Every Turkish company — whether an LLC, JSC, branch, or other entity — must meet ongoing legal, tax, and administrative obligations. Failing to comply results in financial penalties, loss of good standing, and potential criminal liability for managers.

This guide covers all key annual compliance obligations and their deadlines for calendar-year companies (fiscal year January 1 – December 31).

Monthly Obligations

VAT Declaration (KDV Beyannamesi)

• Filing deadline: 28th of the following month
• Payment deadline: 26th of the following month (note: payment precedes filing in some cases — verify with your accountant)
• Applies to: All VAT-registered companies
• Content: Summary of output VAT (on sales) and input VAT (on purchases); net VAT payable or refundable

Withholding Tax Declaration (Muhtasar ve Prim Hizmet Beyannamesi)

• Filing deadline: 26th of the following month
• Covers income tax withheld from employees, subcontractors, and rent payments
• Also includes SGK social security declarations for employees

See our VAT Registration guide and Social Security Registration guide for more detail.

Quarterly Obligations

Advance Corporate Tax (Geçici Vergi)

Turkish companies pay quarterly advance corporate tax based on actual income earned in each quarter:

The advance tax rate is 25% of quarterly taxable income. Advance tax payments are credited against the annual corporate tax liability.

Annual Tax Obligations

Annual Corporate Income Tax Return (Kurumlar Vergisi Beyannamesi)

• Filing deadline: April 30 of the year following the fiscal year (for calendar-year companies)
• Payment deadline: April 30 (same as filing)
• Covers: Full fiscal year income, deductible expenses, exemptions, and net tax liability after advance payments

If advance tax payments exceed the annual tax liability, the company can apply for a refund.

Annual Income Tax Return (if applicable)

For companies with sole proprietor structure or partnerships subject to income tax (rather than corporate tax), the annual return deadline is March 31.

Stamp Duty

Stamp duty (damga vergisi) applies to many contracts, agreements, and other documents. Stamp duty declarations are typically included in monthly or quarterly declarations.

Annual Corporate Law Obligations

Ordinary General Assembly (Olağan Genel Kurul)

Turkish law (TCC Articles 409–413 for JSCs and Articles 617–620 for LLCs) requires that every company hold an ordinary general assembly of shareholders/partners within 3 months of the end of the fiscal year — by March 31 for calendar-year companies.

The ordinary general assembly must:

• Review and approve the annual financial statements
• Review and approve the board of directors’/managers’ report
• Resolve on profit distribution (dividend declaration) or loss covering
• For JSCs: elect or reconfirm the board of directors (if terms expire)
• Discharge (ibra) the management for the past year’s activities

Meeting minutes must be prepared and retained. If shareholders are unable to meet in person, Turkish law permits resolutions by written signature in some cases (for LLCs, unanimous written resolutions are possible).

Annual Financial Statements

Companies must prepare annual financial statements in accordance with Turkish Financial Reporting Standards (TFRS) or Turkish Accounting Standards (TMS/TAS) as applicable:

• Balance sheet (bilanço)
• Income statement (gelir tablosu)
• Cash flow statement (for larger companies)
• Notes to financial statements

Statements must be prepared before the general assembly and retained for at least 10 years.

Independent Audit Requirements

Who Requires Independent Audit?

The Council of Ministers has set thresholds above which Turkish companies must submit to independent audit by a licensed audit firm:

Companies meeting at least two of the following three criteria for two consecutive years:

(Verify current thresholds — they are periodically updated)

Additionally, specific company categories (public interest entities, listed companies, banks, insurance companies) require mandatory audit regardless of size.

Audit Process

Independent audits must be conducted by an independent audit firm (bağımsız denetim şirketi) authorized by the Public Oversight, Accounting and Auditing Standards Authority (KGK). The auditor issues an opinion on whether the financial statements present a fair view.

Trade Registry Annual Obligations

Annual Balance Sheet Filing

Companies are required to file certain financial information and the general assembly minutes with the Trade Registry. These are published in the Turkish Trade Registry Gazette and are publicly accessible.

Registered Address Confirmation

Companies must maintain an active registered address. If the address changes, a Trade Registry amendment filing must be made. Address changes must also be notified to the tax office.

Compliance Obligations Summary Table

Penalties for Non-Compliance

Turkish tax authorities impose penalties for late or incorrect filings:

• Late filing penalty: 1× the unpaid tax amount for failure to file (in addition to the tax owed)
• Late payment interest: Monthly interest at rates set by the Council of Ministers (currently approximately 2.5%/month — verify at gib.gov.tr)
• Tax loss penalty: 1× or 3× the unpaid tax for deliberate evasion
• Corporate law penalties: Trade Registry fines for failure to hold general assembly or file required documents

Practical Tips

• Engage a licensed accountant (Mali Müşavir — SMM) from day one; they are required for payroll filings and are essential for tax compliance
• Use e-invoice and e-ledger systems (mandatory above certain thresholds; increasingly expected for all businesses)
• Keep digital copies of all invoices, contracts, and bank statements — Turkish tax records must be retained for 5 years (longer for some obligations)
• Calendar all deadlines at the start of each year and diarize reminders 2 weeks in advance

Frequently Asked Questions

What happens if I miss the annual corporate tax return deadline? Missing the April 30 filing deadline results in a penalty of 1× the unpaid tax amount plus monthly interest. Voluntary late filing (before audit) may reduce penalties. The tax office can also initiate an ex officio assessment.

Do single-shareholder LLCs still need to hold a general assembly? For a single-shareholder LLC, the shareholder resolves matters that would otherwise be decided by the general assembly by written declaration (yazılı karar). A formal meeting with minutes is not required for single-shareholder entities.

Is the annual financial statement audit mandatory for all companies? No. Independent audit is mandatory only for companies meeting the size thresholds described above, plus specific regulated entity types. Small companies are not required to have an independent audit.

Can the fiscal year differ from the calendar year? Yes. Companies can adopt a fiscal year that differs from January–December, but this requires application to the tax office. Most Turkish companies and virtually all foreign-owned entities use the calendar year for simplicity.