Tax 2026
how to legally withdraw nearly 4 million TRY from your company at a 0% tax rate
What is happening
Around 16,500 company owners have received official letters requiring them to appear and provide explanations—so-called izaha davet (invitations to explain). The tax inspectors' logic is simple and relentless: they have begun cross-checking founders' personal expenditures against their officially declared income.
Through its databases, the tax authority sees that you are purchasing real estate and vehicles, and spending millions using personal cards. At the same time, your company has not distributed dividends (kâr dağıtımı) for years, and you have not paid yourself an official director's attendance fee/compensation (huzur hakkı).
The inspector's question is straightforward: "Where did the money for this lifestyle come from if your official income is close to zero?"
The era when personal expenses could be financed with impunity through company cash registers or fictitious loans has come to an end. The digitalization of tax control has brought into clear view what previously remained in the shadows.
How dividend taxation works
As long as profits remain in the company's accounts, there is no dividend tax. As soon as you decide to officially withdraw them to yourself, the following mechanism is triggered.
- Withholding tax (stopaj): the company automatically withholds 15% and remits it to the state budget.
- Declaration: under Turkish legislation, 50% of gross dividends are exempt from personal income tax. If the remaining half exceeds the declaration threshold—which is 400,000 TRY in 2026—an annual tax return must be filed.
At first glance, this appears to be a double burden: both withholding tax and income tax. However, this is precisely where a key mechanism of the Turkish tax code lies.
The zero-liability threshold in 2026
The 15% that the company has already withheld upon dividend distribution is credited against the final tax liability determined on the annual tax return. With a properly calculated distribution amount, these two figures offset each other completely—and the additional tax payable turns out to be zero.
Benchmark calculation for 2026:
- Gross declared: 4,700,000 TRY
- Net cash received: ~3,995,000 TRY
The mechanism works as follows: if you distribute 4.7 million TRY gross, the tax calculated on the progressive rate schedule for the taxable half will exactly equal the withholding tax (stopaj) already paid. In the spring of the following year, you submit your declaration, the tax office applies the tax credit—and you do not pay a single additional lira to the budget.
What this means in practice
Officially distributed dividends are not merely tax optimization. They constitute legally clean proof of funds that you can present to any tax inspector. No need for vague explanations about "shareholder loans" or "personal savings."
The strategy is simple: leverage the tax thresholds deliberately. Officially withdraw approximately 4 million TRY in net dividends this year—and establish an ironclad legal foundation for any personal spending.
This does not constitute tailored tax advice. Specific figures depend on your individual circumstances—consult with our certified public accountant / sworn financial advisor (YMM) before making any decisions.