Taxation

Value added tax (VAT), assessed on the duty paid value is levied on most goods. Three rates apply:

• Basic foods and books is eight per cent
• Basic rate is 18 per cent
• Some food items and others are one per cent

Additional taxes (special consumption tax) are imposed on:

• automobiles
• cigarettes
• alcoholic beverages
• white goods
• fuel oil.

All corporations and limited liability entities are liable for corporation which is 20 per cent and withholding tax which is 15 per cent.

A double taxation agreement between Turkey and Australia is still under negotiation.