Last updated: 24 Sep 2013
Taxation
Value added tax (VAT), assessed on the duty paid value, is levied on most goods. Three rates apply:
- Basic foods and books – 8 per cent
- Basic rate – 18 per cent
- Some food items and others – 1 per cent
Additional taxes (special consumption tax) are imposed on automobiles, cigarettes, alcoholic beverages, white goods and fuel oil.
All corporations and limited liability entities are liable for corporation and withholding tax. Corporation tax is currently 20 per cent and withholding tax is 15 per cent.
A double taxation agreement between Turkey and Australia is still under negotiation.
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.