Law Number : 193

Date of Adoption : December 31,1960

Date and No. of Publication in the Official Gazette : January 6,1961 - 10700

NOTE: This translation which has been made by myself is unofficial and for information purposes only. All rights of it are reserved as a translation anyway. Read this page first, please. Click "GELİR VERGİSİ KANUNU" for full Turkish text of the Law.


[Tax] Obligation

Subject of Tax

Its subject:

Article 1 – (As amended on January 7, 2003 - Act No:4783/1 Art.)

Incomes of real persons are subject to income tax. Income is pure amount of earnings and revenues acquired by a real person within a calendar year.


Elements of income:

Article 2 – (As amended on January 7, 2003 - Act No:4783/2 Art.)

Earnings and revenues included in income are in the following;

1. Commercial earnings,

2. Agricultural earnings,

3. Wages,

4. Self-employment earnings,

5. Revenues of immovable properties,

6. Returns on stocks and bonds,

7. Other earnings and revenues.

Unless any contrary provision provided by this Law, earnings and revenues listed above shall be considered with their real and pure amounts in determination of income.


Full Obligation

Those under obligation [taxpayers]:

Article 3 – Real persons written in the following shall be subject to tax based on total amount of earnings and revenues gained in Turkey and abroad:

1. Those who have settled in Turkey;

2. (As Amended on February 19,1963 - Act No:202/1 st Art.) Turkish citizens who are dependent upon the governmental departments and institutions or organizations and enterprises which their headquarters have been in Turkey, and who are residing due to works of said departments, institutions, organizations and enterprises (Those from such persons who have been subject to income tax and the like in consequence of earnings and revenues that have been obtained by them in countries where they are located, shall not be subject to tax additionally on their earnings and revenues mentioned.)


Settlement in Turkey:

Article 4 – Persons mentioned below shall be deemed settled in Turkey:

1. Those who have residence in Turkey (Residence shall mean, the places which are written in Article 19 and the following Articles of the Turkish Civil Code);

2. (As Amended on February 19,1963 - Act No:202/2 nd Art.) Those who have been dwelt continuously more than six months in Turkey within a calendar year (temporary leavings shall not interrupt period of dwelling in Turkey.)


Cases not considered as settlement:

Article 5 – Even though the following foreigners have stayed in the country more than six months, they shall not be considered as settled in Turkey:

1. Scholars and scientists, experts, officials, media and press correspondents and other people whose conditions are similar to them coming to Turkey for a specific and temporary duty or work or those come for the purpose of collection [of money] or treatment, resting or traveling;

2. Those who have been detained or who stayed in Turkey because of reasons beyond control such as detention, conviction or a disease.


Limited Obligation

Those under obligation [taxpayers] and its subject:

Article 6 – (As Amended on December 24,1980 - Act No:2361/2 nd Art.)

Real persons who have not settled in Turkey shall only be subject to tax on earnings and revenues which they acquired in Turkey.


Acquisition of earnings and revenues in Turkey:

Article 7 –(As amended on March 27,1969 – Act No:1137/1 st Art.)

Acquisition of earnings and revenues within Turkey in respect of the persons who are subject to limited obligation is determined in accordance with the conditions below:

1. (As amended on December31,1981 – Act No:2574/1 st Art.) In commercial earnings: Being a workplace and maintaining a permanent representative of the earning owner and providing his or her earning through those representatives within Turkey. (There will not be considered to have been obtained in Turkey the earnings of the persons who send the goods which they bought or manufactured in Turkey in order to be exported which arose from these works from among those whose their business center have been in Turkey even though they carry these conditions.)

Which meant by selling in Turkey is that being the buyer or seller or both of them in Turkey or being made of the sales contract in Turkey. As to which meant by business center is that the center where the activities in terms of business are actually gathered and managed.

2. In agricultural earnings: Being carried out the agricultural activities in Turkey;

3. In wages:

a) Been performed or being performed of the service in Turkey or utilization of it in Turkey;

b) (As amended on December 24,1980 – Act No:2361/3 rd Art.) Assessment of the attendance fees, dues, premiums and the like belonging to the presidents, members, supervisors and liquidating agentsof the administrative councils of the institutions located in Turkey;

4. Self-employment earnings: Been performed or being performed of the self-employment activities in Turkey or utilization of them in Turkey;

5. In revenues of immovable properties: Being located of the immovable in Turkey and usage of the property and excercise of the rights in such characteristic or utilization of them in Turkey;

6. In returns on stocks and bonds: being deposited of the capital in Turkey;

7. In other earnings and revenues: Performance of the work or transaction which gives rise to these earnings and revenues in Turkey or utilization of them in Turkey;

What meant by utilization mentioned in the 3 rd, 4 th, 5 th and 7 th pharagraphs of this Article is that being made of payment in Turkey or if payment was made in a foreign country transfering of it to the accounts of one who paid in Turkey or the accounts of the person in favour of him or her the payment was made or being divided from his or her profit.


Workplace andpermanent representative:

Article 8– The place of business written in the paragraph numbered 1 of the 7 th Article shall be specified according to the provisions of the Tax Procedure Law.

The permanent representative written in the same Article shall be bound to the person who is represented by a contract of service or power of attorney and isa person authorized to carry out various transactions on his or her behalf for a definite or indefinite period.

The persons listed below shall be deemed to be permanent representative of the person who is represented without being required any other conditions.

1. Commercial agents, merchant agents and officers and those who are in the position of agent according to the provisions of the Commercial Code;

2. (As amended on February 19,1963 – Act No: 202/4 th Art.)The persons whose expenditures paid partly or wholly by the persons who are represented so as to be exempt from the advertising expenses belonged to the persons who are represented;

3. Persons who permanently store goods so as to sell by means of consignationfor account of the person who is represented.

Represantation of several persons by one person at the same time does not change the qualification of permanent representation.


Exemptions and Exceptions

Craftsman Exemption

Craftsman exempt from tax:

Article 9 – (As amended on March 27,1969 – Act No:1137/1 st Art.)(Amended first sentence on July 22,1998 –Act No:4369/26 th Art.) Those who work as in the following form and manner from among the tradesmen and craftsmen shall be exempted from income tax.

1. Those who are engaged in retail trade on condition that not using motorized means of transportor opening a business place (Excluding those who sell wearing apparels, personal goods and ornaments, household goods which their values are high and food, groceries or cleansers by following bazaars and the goods sold in the same kind in stationary business places by means of holding exhibition in front of them)

2. Craftsmensuch as cotton fluffer, tinner, solderer, plumber, locksmith, shoe repairer, shoe shiner, barber, blacksmith, photographer, wood chopper, coal breaker, clothing washer and porter who work as pedlar and work directly for consumers without opening a workplace;

3. Persons who have conditions written in Article 47 from those who engage in all kinds of artistic works as pedlar in the villages and those who carry out the same jobs by means of opening a workplace (Those who fall under the scope of Article 51 can not benefit from this exemption);

4. Those who operates engineless or non-motorized means of transport up to 50 duties (including 50 duties tonnage) in rivers, lakes seas and water passages; who makes transportation with one animal or an animal carriage (Measures written in this paragraph shall be determined about the spouses living together and the children who are under custody or enterprises that are in form of partnership by being taken into consideration the vehicles which operated by these people or partnership collectively);

5. Farmers who carry goods and persons occasionally in consideration of a fare without making transport business regularlyt hrough means that they used in their agricultural works such asanimal, animal carriage, machine, tractor or sandals;

6. (As amended on March 28,2007 – Act No:5615/1 st Art.) Those who sellthe products that are used at homes and which they produce at their homes that they live such as towels, blanket, linen, socks, carpet, rug, wowen fabrics, products produced from scrap leather, knitting, lace work, all kinds of embroidery works and touristic goods, wicker, basket, broom, mop, brush, artificial flower, sequin,payet, bead work, crochet works, string and ropes, tarhana, noodle, ravioliprovided that not to be usedmoving power and not to be employed worker from outside excluding machinery and tools used in houses such as for sewing, embroidery, kitchen robot, iron and the like. It is not an impediment for benefiting from exemption the sale of these products by following bazaars and at the charity bazaars, festivals, fairs and at the places where specified temporarily by public institutions and organizations excluding those who are taxpayer because of their agricultural or professional activities;

7. (As amended on June 4,2008 – Act No:5766/8 th Art.) Excluding those who buy wastes belonging to commercial enterprises regularly or at certain intervals, those who collect all kinds of waste material without opening a business place by wandering from door to door exclusively on their own behalf and account and sell them to the persons who make trading of these materials or reprocess them;

8. (As amended on May 31,2012 – Act No:6322/4 th Art.) Those from among the persons having requirements prescribed in 47 th Article of this Law so as to be exclusive for those selling the products which they manufacture on their own and who are engaged in branches of occupation which they have traditional, cultural, artistic value and about to be lost such as hand weaving works, copper processing, tile and pottery making, mother of pearl and wood carving works, spoon making, walking-stick making, saddlery, hand-painted cloth making, quilting, felting, meerschaum and jet workmanship, rawhide sandal making, hand-printed head scarve making, embroidery and the like.

9. (Addition: May 31,2012 – Act No: 6322/4 th Art.) Those who are engaged in trade and craft affairs which approved by the Ministry of Finance that they show similarity to the works mentionad in the above paragraphs.

(Repealed second paragraph: June 22,1998 – Act No:4369/26 th Art.)

(Repealed third paragraph: August 11,1999 – Act No:4444/14 th Art.; Rearrangement: March 28,2007 – Act No: 5615/1 st Art.) The persons who are subject to Income Tax in real procedure due to their commercial, agricultural or professional earningsand those who carry out the works mentioned above in such a way that pose dependance to the taxpayers of Income and Corporate Tax can not benefit from the exemption of craftsmanship.

(Added paragraph: June 22,1998 – Act No:4369/26 the Art.) Those who carry collectively the conditions of craftsman exemption must take the "Craftsman Exemption Certificate" from the municipality by means of being registered to the related chamber of craftsmenand certifying their situations in order to benefit from this exemption. (Repealed provisions: August 11,1999 –Act No: 4444/14 th Art.)

(Added paragraph: June 22,1998 – Act No:4369/26 th Art.) Beneficiaries of the craftsman exemption are obliged to keep the documents they received from taxpayers of income and corporate tax concerning goods and expenses they purchased in connection with their activities.In the inspections carried out jointly by the authorities to make enquiry according to the provisions of the Tax Procedure Law or the municipal police officials together with the authorities to make enquiry, in case determined that the tax exempted craftsman did not have the documents related to the purchases and expenses of the goods once in a calendar year or the document he or she kept had no relation with the goods and services sold by him or her, his or her “Craftsman Exemption Certificate" is cancelled. Those who has exemption conditions from those whose certificate was cancelled, they are obliged to get certificate again in case they want to continue the same activity.

(Added paragraph: on December 4,1985 – Act No:3239/39 th Art.; Amended paragraph: on July 7,1998 – Act No:4369/26 th Art.) Those who sell national lottery ticket without opening a business place and solely by travelling and those who sell the goods of real and legal persons to the consumers by walking from door to door according to the Law on the Protection of the Consumer No:4077, in favour of them and without being bound with a labour contract, shall be exempt from income tax unless being limited with the conditions above.

(Added paragraph: on May 31,2012 – Act No:6322/4 th Art.) There shall begranted Craftsman Exemption Certificate by the tax department in case of their requests to those who possess the requirements related to craftsman exemption. The Ministry of Finance is authorized to define and determine the form and scope this certificate and to specify the procedures and principles regarding application.

(Added paragraph: December 26,1993 – Act No:3946/6th Art.) This exemtion shall not include the tax deducted through stoppage pursuant to Article 94.


Farmers Exempt From Tax

Small farmer exemption:

Article 10–(Repealed on July 22,1998 – Act No:4369/82 nd Art.)


Limit of small farmer exemption:

Article 11–(Repealed on July 22,1998 – Act No:4369/82 nd Art.)


Measurement of enterprise size:

Article 12–(Repealed on July 22,1998 – Act No:4369/82 nd Art.)


Measurement of sale amount:

Article 13 –(Repealed on July 22,1998 – Act No:4369/82 nd Art.)


Passage to obligation from exemption and to exemption from obligation:

Article 14–(Repealed on July 22,1998 – Act No:4369/82 nd Art.)