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Türkiye Withholding Tax and Freelance Receipt Calculator

Rules and data: TürkiyeBy Hesaplayıcı

The Türkiye withholding tax calculator finds the income tax withheld (stopaj) from a gross payment and the net amount that remains. For a payment agreed as a net amount, it grosses the amount up. Rent and freelance fees are commonly withheld at 20%. For a freelance receipt, it also gives the VAT, the amount received and the payer's total.

By direction: the gross amount, the net amount or the receipt’s amount with VAT.

20% for rent paid by a business and for self-employment fees, 5% for multi-year construction progress payments (Income Tax Law art. 94). Enter the rate of your payment.

Worked example: 20% withholding on a gross rent of 20,000 TRY

Withholding tax

4,000.00 TRY

Gross amount
20,000.00 TRY
Net amount
16,000.00 TRY
Step by step

  1. Withholding tax

    withholding = gross amount × 20%

    withholding = 20,000.00 × 20% = 4,000.00 TRY

  2. Net amount

    net amount = gross amount − withholding

    net amount = 20,000.00 − 4,000.00 = 16,000.00 TRY

tax.withholding.tr

How to use

  1. Choose the Calculation: “Withholding” for rent and other payments, “Freelance receipt” for a serbest meslek makbuzu.
  2. Choose the Direction: “Gross to net” or “Net to gross”. When you only know a receipt’s amount with VAT, such as a fee a court awards with VAT included, choose “From the amount with VAT”.
  3. Enter the Amount in TRY: the gross amount for gross to net, or the net amount the payee keeps for a gross-up.
  4. Enter the Withholding rate of your payment in percent. When the payer is a private person who does not withhold, enter 0.
  5. When the receipt goes to a buyer the communiqué lists, such as a public body or a bank, choose that buyer’s share in VAT withholding, for example 5/10.
  6. Press Calculate.

Formula

Gross to net:

  • Withholding = gross amount × rate
  • Net amount = gross amount − withholding

Net to gross (gross-up):

  • Gross amount = net amount / (1 − rate)
  • Withholding = gross amount − net amount

For a freelance receipt, also:

  • VAT = gross fee × VAT rate
  • Amount received = net fee + VAT − withheld VAT
  • Total cost to the payer = gross fee + VAT

From the amount with VAT, first gross fee = amount with VAT / (1 + VAT rate) and VAT = amount with VAT − gross fee; the withholding and the net fee then come from that gross fee.

The gross amount is the payment before withholding. The net amount is what the payee receives. The rate is the withholding rate you enter; 20% is 0.20. The VAT is on the gross fee, not on the net. Amounts are rounded to the kuruş.

Worked example

The worked example on this page takes 20% withholding from a gross business rent of 20,000 TRY. The first step gives the withholding and the second the net rent paid to the landlord. The second example grosses up an agreed net rent at 20%.

The third example is a freelance receipt for a gross fee of 10,000 TRY. The withholding is 2,000 TRY, the net fee 8,000 TRY and the VAT 2,000 TRY. The freelancer receives 10,000 TRY; the payer’s total cost is 12,000 TRY. When a receipt for a gross fee of 20,000 TRY goes to a public body with 5/10 VAT withholding, the buyer pays 2,000 TRY of the 4,000 TRY VAT itself; the freelancer receives 16,000 + 4,000 − 2,000 = 18,000 TRY.

Limits

The calculator does not choose the rate; enter the rate that applies to your payment. VAT is only worked out for a freelance receipt; the VAT withholding limit and whether the buyer must withhold are not checked. Stamp duty and the tax due on the annual return are not included. Who must withhold and the exemptions are not checked. Amounts are rounded to the kuruş.

Frequently Asked Questions

What is the withholding tax rate on rent in Türkiye?

When the tenant is a business or a taxpayer, it withholds 20% of the gross rent and pays it to the tax office (Income Tax Law art. 94/5-a).

What is the withholding rate on freelance fees in Türkiye?

Payments to self-employed professionals have a withholding rate of 20% (Income Tax Law art. 94/2-b). The business that pays withholds it.

How is the amount received on a freelance receipt calculated?

Take 20% withholding off the gross fee and add VAT of 20% of the gross fee. On a gross fee of 10,000 TRY, the withholding is 2,000 TRY and the VAT 2,000 TRY; the freelancer receives 8,000 + 2,000 = 10,000 TRY.

Is there withholding on a receipt to a private person?

No. Only payers that must withhold tax do so: businesses, companies and public bodies. A private person does not withhold; on a gross fee of 10,000 TRY, the freelancer receives 12,000 TRY with VAT.

How do I write a receipt for a fee awarded with VAT included?

Divide the amount with VAT by 1.20 to get the gross fee. For 10,500 TRY, the gross fee is 8,750 TRY, the VAT 1,750 TRY and the 20% withholding 1,750 TRY. On a receipt to a public body with 5/10 VAT withholding, the amount received is 7,875 TRY.

What does grossing up mean?

When the net amount is agreed, grossing up finds the gross amount that includes the withholding: gross = net / (1 − rate). At 20%, divide the net amount by 0.80.

Is the withholding all the tax I owe?

Not always. Withholding is an advance payment. If you must file an annual return for the income, the tax withheld is set off against the tax on the return.

Calculation rules

  • Withholding tax is the income tax the payer deducts from a payment (Income Tax Law no. 193 art. 94). You enter the rate; common rates are 20% for rent paid by a business and for self-employment fees.
  • Gross to net: withholding = gross × rate, net = gross − withholding. Net to gross (gross-up): gross = net / (1 − rate).
  • Amounts are rounded to the kuruş (half up). In a gross-up the gross is rounded; the withholding is the difference between the gross and the net.
  • Freelance receipt (serbest meslek makbuzu; Income Tax Law art. 94/2-b, VAT Law art. 20): the VAT is on the gross fee, not on the net. Amount received = net fee + VAT − withheld VAT; total cost to the payer = gross fee + VAT. At 20% withholding and 20% VAT with no VAT withholding, the amount received equals the gross fee. From the amount with VAT (such as a fee a court awards with VAT included): gross fee = amount with VAT / (1 + VAT rate), VAT = amount with VAT − gross fee.
  • Only a payer that must withhold tax does so: businesses, companies and public bodies (Income Tax Law art. 94). When the payer is a private person, enter a withholding rate of 0; the amount received is then the gross fee + VAT.
  • Rent payments have no VAT here. Stamp duty and the tax due on the annual return are not included.
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