Turkish Company Annual Compliance: Accounting, Tax and Audit

Once you have set up a company in Turkey, the part that catches people out is rarely the registration itself. It is everything that follows: the filings that fall due every month, every quarter, and every year. Turkish company annual compliance mainly means bookkeeping handled by a licensed accountant, monthly VAT (KDV) and withholding returns, corporate tax that is prepaid quarterly and finalised the following year, employee social security (SGK) filings, and an independent audit once you pass certain size thresholds. As of this writing (September 2026), these duties are overseen by the Turkish Revenue Administration (Gelir İdaresi Başkanlığı, GİB), the Social Security Institution (Sosyal Güvenlik Kurumu, SGK), and the Public Oversight Authority (Kamu Gözetimi Kurumu, KGK). The exact thresholds, rates, and deadlines are adjusted over time, so please confirm the current rules and your own company's position with a qualified advisor.

Key Takeaways

• Turkish companies generally keep double-entry books maintained by a licensed accountant (Serbest Muhasebeci Mali Müşavir, SMMM) under the Turkish Commercial Code (TTK) and the Tax Procedure Law (VUK), and as of this writing those books are usually held in electronic ledger (e-Defter) form.
• VAT (KDV) is typically filed monthly, and as of this writing the standard rate is 20 percent, but the exact rate, reduced rates, and deadlines follow the current rules of the Turkish Revenue Administration (GİB).
• Corporate tax (Kurumlar Vergisi) carries a standard rate of 25 percent as of this writing, is generally prepaid quarterly as provisional tax, and is finalised in an annual return the following April.
• Whether an independent audit is required depends on thresholds the Public Oversight Authority (KGK) sets across three measures, namely assets, turnover, and headcount, and those thresholds are revised from time to time.
• Late or missing filings can trigger penalties and interest, and the most common problem for Chinese-owned businesses is underestimating how often filings fall due and how much they will rely on a local licensed accountant.

What Turkish Company Annual Compliance Covers

Turkish company annual compliance covers accounting, monthly VAT filing, quarterly and annual corporate tax, and employment-related social security duties. This is a system of filings and records that runs across the whole year, not a single task you settle at year end. Companies that pass the thresholds also undergo an independent audit, and joint-stock companies (Anonim Şirket, A.Ş.) carry additional governance duties such as the general meeting.

For Chinese shareholders, the first idea to fix in place is frequency. Turkey works to a monthly rhythm, not the yearly cadence many people are used to. The table below groups the main duties by authority and by how often they fall due, so you can see the whole picture at a glance.

Filing	Responsible authority	Usual frequency
VAT (KDV)	Revenue Administration (GİB)	Monthly
Combined withholding and social security return (Muhtasar ve Prim Hizmet Beyannamesi)	GİB / SGK	Monthly
Provisional (prepaid) corporate tax	Revenue Administration (GİB)	Quarterly
Annual corporate tax (Kurumlar Vergisi)	Revenue Administration (GİB)	Yearly
Independent audit (once thresholds are met)	Overseen by the Public Oversight Authority (KGK)	Yearly

Bookkeeping Must Be Handled by a Licensed Accountant

A licensed accountant (Serbest Muhasebeci Mali Müşavir, SMMM) must handle day-to-day bookkeeping for most Turkish companies; this is a legal requirement, not a choice. Under the Turkish Commercial Code and the Tax Procedure Law, companies keep double-entry books (bilanço esası), with clear rules on the form, retention, and correction of those records. As of this writing, eligible companies have largely moved onto the electronic ledger (e-Defter) system, and the old paper-ledger notarisation process has been replaced by electronic records in most situations.

The accountant's role goes well beyond recording transactions. They prepare and submit the monthly returns, reconcile input and output invoices, maintain the general ledger, and draw up the balance sheet and income statement at year end. As a cross-border advisory firm with an office in Istanbul and a fully Mandarin-speaking team, we usually act as the bridge between you and the local SMMM, explaining the accounting and each month's filing results back to you in Chinese. If you want this arrangement set up correctly from the formation stage onward, start with our complete guide to registering a company in Turkey as a Chinese national.

E-Invoicing and E-Ledgers Are Now Mandatory

Electronic invoicing (e-Fatura), electronic archive invoices (e-Arşiv Fatura), and electronic ledgers (e-Defter) are mandatory once a company passes the turnover threshold set by the Turkish Revenue Administration (GİB). Whether you are brought into a given system usually depends on whether your prior-year turnover exceeded the threshold GİB has set, or on whether you fall into a designated sector. These thresholds and the scope of inclusion are adjusted year by year and need an annual review.

For Chinese-owned businesses, the practical meaning is this: once you are included, paper invoices are no longer accepted in most situations, and invoicing has to run through a compliant electronic system. Your invoicing process, system integration, and accounting must stay in step. We recommend fixing the invoicing method as soon as the company begins operating, so you are not caught out by e-Fatura rules in your dealings with customers or with customs.

VAT (KDV) and Withholding Are Filed Every Month

VAT (KDV) is filed monthly in Turkey, making it the most frequent compliance duty for any Turkish company. As of this writing the standard rate is 20 percent, with reduced rates for certain goods and services; the exact rate that applies and the filing deadline follow what the Turkish Revenue Administration (GİB) publishes for the current period. Even in a month with no sales revenue, you generally file a nil return rather than skip the filing.

Handled on the same monthly cycle is the combined withholding and social security return (Muhtasar ve Prim Hizmet Beyannamesi). This single return brings together income tax withheld on employee wages, withholding on payments such as rent, and social security contribution data, and it is used jointly by GİB and SGK. For companies in import and export, import-stage VAT and customs duty also interlock with customs procedures, so invoicing, customs clearance, and bookkeeping need to be kept aligned.

Corporate Tax Is the Core of Turkish Company Annual Compliance

Corporate tax (Kurumlar Vergisi) is the largest single tax most Turkish companies pay, with a standard rate of 25 percent as of this writing. It is paid in two layers: first, provisional tax (Geçici Vergi) that is filed and prepaid quarterly, spreading the year's liability across the quarters; and second, the annual settlement return filed after the accounting year closes, generally in the following April, which reconciles any overpayment or shortfall. Banks and some financial institutions are usually taxed at a higher rate than ordinary companies, subject to the current GİB rules.

For shareholders, tax planning should begin before profits are earned, not in April when the return is prepared. Which expenses are deductible, how related-party transactions are priced, and what withholding a dividend distribution triggers all shape the final liability in a real way. Our cross-border team frequently works alongside the licensed accountant and tax advisor at this stage, helping Chinese shareholders line up the treatment on both the Chinese and the Turkish side.

Hiring Anyone Triggers Social Security (SGK) Duties

Employing even one person obligates a Turkish company to file and pay monthly social security contributions to the Social Security Institution (SGK). Contributions comprise an employer part and an employee part, with the rates and the floor and ceiling of the contribution base set by SGK and revised from time to time. Both hiring and departures must be registered with SGK within set time limits, and late registration incurs penalties.

Even a small company where a foreign shareholder also serves as manager (müdür) takes on social security duties once employment begins; small scale is no exemption. For businesses planning to post Chinese employees to Turkey, the work permit sits together with social security and tax as one connected arrangement. The earlier you plan it, the more options you keep, rather than addressing these requirements after people have already arrived.

Larger Companies Must Undergo an Independent Audit

Turkish companies that exceed the size thresholds set by the Public Oversight Authority (KGK) must undergo an independent audit each year. Whether the audit requirement applies depends on three measures (total assets, annual turnover, and headcount); meeting any qualifying combination triggers the duty. The threshold figures are revised from time to time, so they need to be checked against the current standard each year.

On the governance side, a joint-stock company (A.Ş.) generally holds an annual general meeting (Genel Kurul) and files as required, while a limited liability company (Limited Şirket) has lighter but comparable resolution and filing duties. Maintaining registered information with the Trade Registry Directorate (Ticaret Sicil Müdürlüğü) and the relevant chamber of commerce (Ticaret Odası), plus paying the annual dues, are also ongoing duties. These compliance records feed directly into the company's banking relationships. For how account maintenance and compliance standing connect, see our guide to opening a corporate bank account in Turkey for a Chinese-owned company.

The Most Common Turkish Company Annual Compliance Mistakes

Underestimating how often Turkish filings fall due is the most common compliance failure among Chinese-owned businesses. A few problems recur again and again:

• Assuming that no sales means no filing, and so missing the nil return that was still due.
• Underestimating the monthly rhythm and pushing VAT, withholding, and social security to the end of the quarter or year, which builds up penalties and interest.
• Poor communication with the local accountant, so that language and time-zone gaps mean missing paperwork is only noticed at the deadline.

Avoiding these traps comes down to a steady monthly rhythm and clear communication in Chinese, not last-minute fixes. In our company registration service for Chinese nationals we plan the first year of Turkish company annual compliance at the same time, assigning the person responsible and the timing for bookkeeping, tax, and social security in advance. For more complex situations involving cross-border contracts, disputes, or dealings with regulators, see our 2026 guide to cross-border legal issues between China and Turkey.

Frequently Asked Questions

Does a Turkish company have to hire an accountant, or can I keep the books myself?

Yes, a Turkish company almost always has to engage a licensed accountant (SMMM) for its bookkeeping and filings. Double-entry bookkeeping, the electronic ledger (e-Defter), and the various monthly returns all have strict format and submission requirements. They must be handled in Turkish on official platforms. Most Chinese-owned businesses keep an SMMM on a long-term basis and use a Chinese-speaking advisor to coordinate the communication.

How often is Turkish VAT (KDV) filed?

Turkish VAT is typically filed monthly. As of this writing the standard rate is 20 percent, with reduced rates applying to certain goods and services. The exact rate and deadline follow the current rules of the Turkish Revenue Administration (GİB). Even in a month with no income, you generally submit a nil return rather than skip filing.

What is the corporate tax rate in Turkey, and when is it paid?

Turkey's corporate tax carries a standard rate of 25 percent as of this writing. Banks and other financial institutions are usually taxed at a higher rate. Corporate tax is prepaid quarterly as provisional tax and finalised in an annual return the following April, reconciling any overpayment or shortfall. The exact rate and deadlines change over time, so rely on the latest GİB announcements and confirm with an advisor.

If the company is not actually trading, does it still have to file?

Yes, even if a company is not trading, it generally still has to submit monthly nil returns and maintain basic compliance. Turkey's filing duties are not directly tied to whether there is actual income. A dormant company that does not file can still accumulate penalties and interest. If you are certain the company will be inactive long term, the safer course is to consult an advisor about suspending operations or winding it up.

Which Turkish companies need an independent audit?

Companies that exceed the size thresholds set by the Public Oversight Authority (KGK) must undergo an independent audit. The audit duty is triggered when a company meets the relevant combination of measures (total assets, annual turnover, headcount) over consecutive years. Because the thresholds are revised from time to time, review them against the current KGK standard each year rather than relying on old figures.

Does hiring a single employee mean paying social security?

Yes, once a company employs staff it must file and pay monthly social security to the Social Security Institution (SGK). Contributions comprise an employer part and an employee part, and both hiring and departures must be registered with SGK within set time limits. Small company size is not a ground for exemption, and late registration or payment incurs penalties.

What happens if a filing is late or missed?

Late or missing filings trigger penalties and interest, and in serious cases they can affect the company's tax standing and banking relationships. Turkey applies strict time limits to monthly duties, and penalties are enforced by GİB and SGK under the relevant laws. Building a steady monthly filing rhythm early is the key to keeping risk low.

How should a Chinese-owned business manage a Turkish company's annual compliance?

Combine a stable local licensed accountant, a clear monthly timetable, and communication in Chinese. Turkey works mainly to a monthly rhythm, and missing any one link can cause a late filing. As a cross-border advisor with an office in Istanbul and a fully Mandarin-speaking team, we set this arrangement up from the registration stage and report back in Chinese at each milestone.

Turkish company annual compliance works best when you break the year into steady monthly and quarterly checkpoints, so that bookkeeping, tax, social security, and audit each fall into place instead of piling up at year end. If you would like someone to organise this process from start to finish and report to you in Chinese every month, book a free consultation in Mandarin or English, and we will give you a workable compliance timetable built around your company's specific situation.

Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, immigration, or investment advice. Policies and figures change; please confirm the current details and your personal eligibility with a qualified advisor before acting.