Short answer: Communiqué 332 sets the 2026 tariff for commercial profit as 15% up to 190,000 TL, then 28,500 TL plus 20% up to 400,000, 70,500 TL plus 27% up to 1,000,000, 232,500 TL plus 35% up to 5,300,000, and 1,737,500 TL plus 40% above that. On wages the 27% band runs to 1,500,000 TL. Provisional tax for a sole proprietorship is a flat 15%, not this tariff. A limited company looks at the general corporate rate of 25%.
Most calculations that land on the desk in October 2026 multiply the whole profit by the top rate. Tax on 500,000 TL of profit is not 500,000 times 40%. A band does not paint every lira the same colour. One band ends, the next opens, and the tax already due on the earlier band is printed in the table.
This guide is the commercial profit of a sole proprietorship, and how the wage tariff differs. The formation choice is in sole proprietorship or limited company. The days are in the monthly tax calendar. The same two tariffs get mixed in files at our Kızılay office in Ankara.
There are two tariffs
Article 103 has one tariff, with a separate wage line. On income other than wages, 27% stops at 1,000,000 TL. On wages the same rate runs to 1,500,000 TL. Both then take 35% up to 5,300,000 TL and 40% above it. Dressing the shop’s profit in the wage band understates the tax.
| Base | Commercial profit and other income | Wages |
|---|---|---|
| Up to 190,000 TL | 15% | 15% |
| Up to 400,000 TL | 28,500 TL, then 20% | 28,500 TL, then 20% |
| Next band | Up to 1,000,000 TL: 70,500 TL, then 27% | Up to 1,500,000 TL: 70,500 TL, then 27% |
| Up to 5,300,000 TL | 232,500 TL, then 35% | 367,500 TL, then 35% |
| Above 5,300,000 TL | 1,737,500 TL, then 40% | 1,697,500 TL, then 40% |
The 28,500 TL is 15% of 190,000 TL. The 70,500 TL is the tax accumulated up to 400,000 TL. The 232,500 TL is the commercial tax accumulated up to 1,000,000 TL. Add the excess at its own rate. The source is the Revenue Administration’s 2026 tariff.
What does 500,000 TL of profit produce?
Operating account or balance sheet does not change the tariff. Tax hits the base after deductions. In the example there is no other income, no Bağ-Kur deduction and no loss carried forward. The base is 500,000 TL, and it is not a wage.
Tax on 400,000 TL is the 70,500 TL printed in the table. The remaining 100,000 TL sits in the 27% band: 27,000 TL. Total tax is 97,500 TL. Calling the whole profit 27% writes 135,000 TL. Calling it 15% writes 75,000 TL. Neither is the tax on this base. The effective rate is 97,500 / 500,000, which is 19.5%. The marginal rate is 27%. They are different sentences.
A base of 150,000 TL never leaves the first band: 150,000 × 15% = 22,500 TL. Profit inside the first band does not see the higher rates.
The same 1,200,000 TL costs less as a wage
Commercial profit of 1,200,000 TL carries 232,500 TL of tax on the first 1,000,000. The remaining 200,000 TL is at 35%: 70,000 TL. The total is 302,500 TL.
The same amount as a wage is still inside the 27% band, which runs to 1,500,000 TL. Tax on 400,000 TL is 70,500 TL. The remaining 800,000 × 27% is 216,000 TL. The total is 286,500 TL. The gap is 16,000 TL, and it disappears if the shop’s profit is forced onto the wage tariff. An employee’s payroll uses that second line. The minimum-wage exemption belongs to wages too. It is not a further deduction from commercial profit.
Provisional tax is 15%, not the bracket
On commercial profit taxed under the real regime, the Revenue Administration’s guide states provisional tax at a flat 15%. Quarterly profit is advanced at that rate and credited on the annual return. The bracket tariff is built on the March return. Charging 27% or 40% as provisional tax rewrites the rate in the guide.
In the 500,000 TL example, provisional tax across the year approaches 15% of cumulative profit: 75,000 TL. That is not 75,000 TL in every period. Tax already paid is deducted from the next period. If the March return computes 97,500 TL and 75,000 TL has been paid, 22,500 TL remains. Another withholding, or a short payment, changes the line. Unpaid provisional tax is credited only to the extent it was paid.
There are four periods. Law 7566 put October–December on a return of its own for periods starting on or after 1 January 2025. The general days are the 17th of May, August, November and February. The last quarter of 2026 looks at 17 February 2027. The days are in the monthly tax calendar. The simplified regime and long-term construction stay outside this return.
The bars belong to this one example. A different base, deduction or earlier payment moves all three. 97,500 TL is not 40% of the profit.
A limited company does not use this tariff
A limited or joint-stock company pays corporate tax. The general rate is 25%. Banks, payment institutions, insurers and some other named companies are at 30%. Export profit is discussed at 20%, and manufacturing with an industry registry at 24%. A reduced rate applies to that slice of profit. It is not painted across the whole company. Provisional tax follows the corporate rate, not the sole prop’s 15%. The source is the Revenue Administration’s 2026 corporate-rate table.
A dividend in the partner’s pocket does not replace the company’s 25%. The company files in April. The partner reads the dividend under the rule for that income. The numeric choice of entity is in sole proprietorship or limited company. Formation is a separate step.
Frequently asked questions
If my profit is 500,000 TL, is the tax 40%?
No. 500,000 TL is at the start of the 27% band. Add 27% of the remaining 100,000 TL to the 70,500 TL printed for 400,000 TL. The tax is 97,500 TL. The 40% rate belongs to the slice above 5,300,000 TL.
Do I pay provisional tax on the brackets too?
On a sole proprietorship’s commercial profit, provisional tax is a flat 15%. The brackets apply on the annual income tax return. Provisional tax you paid is credited there. For a limited company, provisional tax follows the corporate rate. The general rate is 25%.
Is there provisional tax in February as well?
Yes. October–December is filed by 17 February under Law 7566. For 2026 profit the general day is 17 February 2027. A weekend or a decree can move it. The annual return does not replace that period.
Can I use the wage tariff on the shop’s profit?
No. On wages, 27% runs to 1,500,000 TL. On commercial profit, 27% stops at 1,000,000 TL. At 1,200,000 TL the wage tax is 286,500 TL and the commercial tax is 302,500 TL. The minimum-wage exemption belongs to wages.
Does the simplified regime pay provisional tax?
No. The Revenue Administration guide leaves simplified-regime profit, and long-term construction profit, outside provisional tax. Your regime is on the tax plate.
Does a limited partner pay the company’s tax on these brackets?
The company’s profit is corporate tax. The general rate is 25%. The partner may also have dividend income. That share does not remove the company’s return. In a sole proprietorship the profit is the owner’s commercial income, and it uses the brackets in this guide.
In short
In 2026, tax on commercial profit is 15% up to 190,000 TL. At 400,000, 1,000,000 and 5,300,000 the rate becomes 20%, 27%, 35% and 40%. Tax on a 500,000 TL base is 97,500 TL. Provisional tax is not a small copy of that tariff. It is a flat 15%, paid in four periods.
At Ankara Muhasebeci, in the Kızılay office on Atatürk Boulevard, we build the base from your profit list and read provisional tax next to the March return. Get in touch, or see tax advisory. What to bring the first time is in the first-meeting list.
Separate one number: commercial profit after deductions. That number enters the brackets. On provisional tax the same number is read at 15% in advance. For a limited company, both sit outside this table.
