Wage payments, professional fees, rent payments and dividend distributions are typical subjects of withholding. Taxes withheld are declared on the withholding and social security return. Withholding rates are set by Presidential Decrees according to the type of payment.
Source: Income Tax Law Art. 94, Corporate Tax Law Art. 15
Related terms
Withholding and social security returnThe return through which tax withholdings and social security contribution notifications are reported together.Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.Capital gainGains of individuals from disposing of certain assets and rights that are subject to income tax.Certified public accountant (SMMM)A professional authorised to keep taxpayers' books, prepare their financial statements and advise on accounting and tax matters.
Last updated: October 22, 2026 · This definition is for general information only.