Short answer: From the month after formation, a new company files a VAT return every month (even with no sales), submits a withholding and social security return every month if it has staff, declares provisional tax three times a year and files its annual return after the year ends: sole proprietorships in March, limited and joint-stock companies in April. The most critical period of the first year is the first 30 days, when the systems are set up.
Most entrepreneurs breathe a sigh of relief once formation is complete. Yet the real routine is established in the first months after formation. A missed return or a late notification in this period can turn into needless penalties just when the business is busiest.
We compiled this checklist from our work with newly formed companies in Ankara. Where sole proprietorships and capital companies differ, we point it out.
First week: set up the systems
- Tax certificate: Download it from the online tax office after the inspection and keep it at your premises.
- e-Notification: Tax office correspondence arrives here; forward notifications to your phone.
- Invoicing: The e-Archive portal or, if you meet the conditions, e-Invoice integration. We explain which you need in e-Invoice or e-Archive.
- Bank account: Open a company account and keep it separate from personal spending.
- Accounting agreement: Sign a written agreement with your certified public accountant and authorise them for e-Filing.
First month: the first returns
The first VAT return for the month of formation is due by the 28th of the following month. Even if you have made no sales yet, the return is filed as a nil return; not filing it triggers an irregularity penalty. If you employ staff, the withholding and social security return for wages is due by the 26th of the following month.
This month, also agree how purchase and sales documents will be collected. If it is not clear by which day documents reach your accountant each month, meeting filing deadlines gets harder every month.
At the end of the first three months: a short review
When the first quarter closes, hold a half-hour review with your accountant. Go through the balance of income and expenses, uncollected receivables, unpaid taxes and premiums and the estimated amount for the first provisional tax period. This early check lets you spot, before the year moves on, whether the activity code or invoicing arrangement needs to change.
If you are hiring
Before your first employee starts, the workplace must be registered with SGK and the employee notified to SGK before their first day. Late notification leads to an administrative fine. You can find details on payroll, the minimum wage support and incentives in our first employee checklist. Use our salary calculator for net-to-gross calculations.
The first year month by month
The table below shows the first year of a limited company formed in January that employs staff. If you formed in a different month, the calendar shifts on the same logic.
| Period | Task | Deadline |
|---|---|---|
| Every month | VAT return and payment | 28th of the following month |
| Every month (if staff) | Withholding and social security return | 26th of the following month |
| Every month (if threshold exceeded) | Ba-Bs forms | Last day of the following month |
| May | 1st provisional tax period (January–March) | 17 May |
| August | 2nd provisional tax period (April–June) | 17 August |
| November | 3rd provisional tax period (July–September) | 17 November |
| December | Year-end stock count, depreciation and valuation | 31 December |
| March of the next year | Annual income tax return (sole proprietorship) | 31 March |
| April of the next year | Corporate tax return (limited, joint-stock) | 30 April |
Assumes a company that employs staff and exceeds the Ba-Bs threshold every month. e-Ledger certificates, SGK notifications and other filings are not included.
We explain exact dates and how deadlines falling on weekends shift in our monthly tax calendar.
Provisional tax periods: be ready for surprises
Provisional tax is advance tax on profit earned during the year, in three-month periods. A company that makes a profit in its first year is often surprised by its first provisional tax payment. Asking your accountant for an estimate before the period ends protects your cash plan. Sole proprietorships pay at income tax schedule rates; limited companies at the 25% corporate tax rate.
Cash planning: how much to set aside for tax
The most common problem in the first year is not building tax payments into cash flow in advance. A practical method is to move a set percentage of each receipt into a separate account. Setting aside all the VAT you collect, and about a quarter of estimated profit for income or corporate tax, is a safe start for most new companies. Bağ-Kur and SGK premiums should also be added to the plan. Your accountant can refine these percentages with real figures at the end of the first three months.
Differences for sole proprietorships
The calendar above largely applies to sole proprietorships too, with a few important differences. Sole proprietorships usually keep a business ledger and file an annual income tax return instead of corporate tax. There are no company-law obligations such as general meetings or a share register. Because the owner is insured under Bağ-Kur, a monthly premium payment is added to the calendar. Entrepreneurs under 29 who are first-time taxpayers can use the young entrepreneur exemption; we explain this benefit with an example in our courier tax exemption article.
Year end: preparing to close
December is the busiest month for new companies. To calculate the year’s profit correctly, the following are completed:
- Stock is counted and valued.
- Depreciation is recorded for fixed assets. Use our depreciation calculator for the calculation.
- Foreign currency receivables, payables and accounts are valued at the year-end exchange rate.
- Uncollectable receivables and expense accruals are reviewed.
- Cash and bank balances are reconciled with documents.
The following year: annual return and general meeting
Sole proprietorships file the annual income tax return in March; limited and joint-stock companies file the corporate tax return in April. In capital companies the ordinary general meeting is held within three months of the end of the financial year and the financial statements are approved.
The most common first-year mistakes
- Not filing the VAT return because there were no sales
- Notifying SGK of an employee after they have started
- Paying company expenses with a personal card and not getting documents
- Not including provisional tax in the cash plan
- Never checking the e-Notification inbox
We collected mistakes made at the formation stage in 7 mistakes when forming a company.
Frequently asked questions
Do I need to file a VAT return if I made no sales?
Yes. From the moment VAT liability begins, a return is filed for every period. In periods without sales, a nil return is filed.
When is a new company’s first return due?
The VAT return for the month of formation is due by the 28th of the following month. If there are staff, the withholding and social security return is due by the 26th of the following month.
Is provisional tax paid in the first year too?
Yes. If there is profit in the three-month periods of the formation year, provisional tax is calculated and paid. Provisional tax paid is deducted from the tax calculated on the annual return.
Who files Ba-Bs forms?
Balance-sheet taxpayers and business ledger taxpayers meeting certain conditions file these forms if their monthly purchases from or sales to a single person or entity exceed 5,000 TL.
How long should I keep documents?
Under the Tax Procedure Law, books and documents are kept for five years from the calendar year following the year they relate to. The Turkish Commercial Code sets a ten-year retention period for merchants; for companies it is safer to follow the longer period.
If the company makes a loss, do I still file a return?
Yes. Losses are declared too, and must be recorded correctly so they can be offset against profits in future years.
Summary
A new company’s first year is the year a calendar discipline is established. Systems in the first week, filing habits in the first month, provisional tax during the year and closing procedures at year end are all connected steps. Once this routine is in place, the following years take far less time.
For newly formed companies in Ankara, we prepare a personal filing calendar from formation day and tell you in advance which document is needed when each month. If your formation is still under way, see our guide to company formation in Ankara, look at our accounting service for support, or get in touch directly.
We recommend printing this list and pinning it by your desk. Going through it at the end of each month is a five-minute habit that prevents most potential penalties throughout the year. A company that closes its first year in good order starts its second on much firmer ground.
