The simple method allows eligible taxpayers to calculate business income by subtracting expenses from revenue without detailed accounting, provided they meet the participation, rental, turnover, and IIT exemption criteria.
Turkey’s government has published Presidential Decision No. 10380 in the Official Gazette on 9 September 2025, effective 1 January 2026.
Presidential Decision No. 10380 narrows the use of the simplified taxation method under the individual income tax (IIT), requiring certain businesses to use the real method instead.
In provinces with metropolitan municipalities, the simplified regime no longer applies to most manufacturers, traders, construction and vehicle service businesses, restaurants, entertainment venues, and urban passenger transport providers, except for itinerant or marketplace sellers without a permanent establishment.
The simple method in business income taxation allows eligible taxpayers to calculate their income by deducting expenses from revenue, without the need for detailed accounts, provided they meet the conditions for participation, rental limits, and turnover thresholds, and are exempt from IIT.
For 2025, key limits include TRY 79,000 (TRY 48,000 for other locations) for rent, TRY 990,000 (TRY 1,580,000 for different places) for traders’ purchases/sales, and TRY 480,000 revenue for service providers.
Specific sectors, such as finance, real estate, and large-scale manufacturing, are excluded.
