When conducting business in Turkey, understanding the local tax system is essential. One important but often overlooked component of this system is the stamp tax. Whether you’re a foreign investor setting up a business or a multinational company signing contracts in Turkey, stamp tax can impact your financial and legal responsibilities.
What Is Stamp Tax in Turkey?
Stamp tax in Turkey is a type of transaction tax levied on documents that represent a monetary value or commitment. Governed by Law No. 488, the stamp tax applies to a wide range of taxable documents in Turkey, including contracts, letters of guarantee, financial statements, and more.
The tax is triggered when a document is signed, executed, or presented for use in Turkey. Both physical and electronic documents can fall under the scope of this tax.
Who Is Responsible for Paying It?
The person or entity that signs the document is usually responsible for the stamp tax. In cases where multiple parties sign the document, each party is jointly liable for the payment.
For example, in a contract signed between a Turkish entity and a foreign company, both sides may be held accountable unless otherwise stated. In agreements involving a Turkish government office and a private individual or business, the private party typically pays the stamp tax.
Tax Rates and Limits (As of 2025)
Stamp tax is either calculated proportionally (as a percentage of the monetary value in the document) or charged as a fixed fee, depending on the type of document.
For 2025, the following rates apply:
- General contracts, letters of undertaking, and promissory notes: 0.948% (binde 9,48)
- Lease agreements: 0.189% (binde 1,89)
- Wage and service payment receipts: 0.759% (binde 7,59)
- Fixed taxes for certain documents (e.g., balance sheets): Ranging from 230 TL to 672 TL
Also, there’s a maximum cap for a single document: as of 2025, the upper limit is 24,477,478.90 TL per document.
These values are revised annually according to the revaluation rate published by the Ministry of Treasury and Finance.
Which Documents Are Subject to Stamp Tax?
According to the legislation and annual tax tariff, the most common taxable documents in Turkey include:
- Commercial contracts
- Construction and consultancy agreements
- Balance sheets and income statements submitted to banks or government institutions
- Lease contracts
- Employment contracts
- Letters of guarantee, pledges, and sureties
- Loan agreements (unless exempt)
However, not every document is taxable. For example:
- Internal company documents without external use
- Personal letters and non-financial correspondences
- Duplicate (unexecuted) copies of a document
may not trigger a tax liability.
If you are establishing a company in Turkey, nearly every document involved in the incorporation and operation process may involve stamp tax—unless exempt by law. You can read more about the company setup process here.
Exemptions and Incentives
Certain transactions are exempt from stamp tax by law. Examples include:
- Capital increase documents of joint stock or limited companies (after 2004 reforms)
- Contracts related to export credits and foreign-sourced loans
- Some construction agreements, such as revenue-sharing or turnkey contracts when done through official processes
- Government-tendered projects under specific legislation
Understanding whether your document qualifies for exemption can significantly reduce your tax burden. Consulting a local tax advisor is highly recommended before executing high-value agreements.
Electronic Documents and Stamp Tax
In Turkey, documents created and signed electronically (with qualified e-signatures) are also subject to stamp tax. The same principles of calculation and payment apply.
For digital workflows, stamp tax must be paid via electronic systems integrated with the Turkish Revenue Administration (GIB). The transition to e-documents does not eliminate tax obligations.
Payment and Filing
Stamp tax must be paid before or on the date the document is executed or used. Payment methods include:
- Tax stamps or printed papers (less common now)
- Bank transfers and electronic filings through the official tax system
In many cases, stamp tax returns are submitted monthly or quarterly, especially by companies with recurring obligations.
Failure to pay stamp tax on time may result in penalties and interest, and in some cases, the document may be considered inadmissible in court.
Why It Matters for Foreign Investors
If you’re operating in Turkey through a representative office, liaison office, or fully owned subsidiary, every contract or transaction document should be reviewed in terms of stamp tax implications.
For instance:
- Supplier contracts, employment offers, or lease agreements all may trigger stamp tax.
- Signing a guarantee letter or pledge for a Turkish loan can create liability, even if the loan is foreign-sourced.
Foreign companies often underestimate this tax, leading to compliance issues later. A proactive approach, ideally with support from a tax advisory firm experienced in Turkish regulations, is the best safeguard.
Final Thoughts
Stamp tax in Turkey may seem minor at first glance, but it can have a significant cumulative cost for businesses. Knowing which documents are taxable, how much to pay, and when to pay can protect your company from legal and financial risk.
If you need professional guidance on contract tax Turkey, tax compliance, or setting up operations, the Metropol CPA team is ready to support you.