hesaplayıcı
Menu

Türkiye Withholding Tax Calculator: Gross to Net

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. Enter the amount, the withholding rate and the direction. Rent paid by a business and self-employment fees are commonly withheld at 20%.

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 TRY

Gross amount
20,000 TRY
Net amount
16,000 TRY
Step by step
  1. Withholding tax

    withholding = gross amount × 20%

    withholding = 20,000 × 20% = 4,000

  2. Net amount

    net amount = gross amount − withholding

    net amount = 20,000 − 4,000 = 16,000

How to use

  1. Enter the Amount in TRY: the gross amount for gross to net, or the net amount the payee keeps for a gross-up.
  2. Enter the Withholding rate of your payment in percent.
  3. Choose the Direction: “Gross to net” or “Net to gross”.
  4. 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

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. 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%.

Limits

The calculator does not choose the rate; enter the rate that applies to your payment. VAT, VAT withholding, 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.

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.
  • VAT, VAT withholding, stamp duty and the tax due on the annual return are not included.
Sources (3)

Terms

News

Topic