Foreign Investor Guide

Homepage Foreign Investor GuideCOST OF DOING BUSINESS

Reference: Presidency of the Republic of Turkey Investment office www.invest.gov.tr

Foreign Investor Guide

COST OF DOING BUSINESS

FOREIGN INVESTMENT GUIDE

  • BUILDING A BUSINESS
  • WORK PERMIT
  • RESIDENCE PERMIT
  • REAL ESTATE AND CITIZENSHIP ACQUISITION
  • COST OF DOING BUSINESS
  • INVESTMENT AREAS
  • TAX GUIDE
  • LEGAL GUIDE
  1. COST OF DOING BUSINESS
  2. Monthly Minimum Wage (gross and net)

Monthly Minimum Wage (gross and net)

 


US Dollars


Net Minimum Wage

338,88


Gross Minimum Wage

429,01
  • Social security premium payment (14%)

60,06

·         Unemployment insurance fund payment (1%)

4,29

·         Income tax (15%) *

22,52

·         Minimum living allowance **

32,18

·         Stamp tax (0.759%)

3,26

Total Amount of Deductions

90,13

Cost to Employer

  

·         Gross minimum wage

429,01

·         Social security premium employer's share (15.5%) ***

66,50

·         Employer's contribution to unemployment insurance fund (2%)

8,58


Total Cost to Employer

505,09

* Calculation of income tax: [(429,01 - 60,06 - 4,29) x 0,15] - 32,18 = 22,52
** Applies to single, childless employees; It varies according to marital status and the number of children.
*** A five-point discount (from 20.5% to 15.5%) is applied as an incentive for the premiums paid within the legal period.

Source: Ministry of Family, Labor and Social Services

Data valid from January 1, 2020 to December 31, 2020

1 USD = 6.86 TL (Based on the rate of 1 July 2020)

 2.Cost of Electricity

Cost of Electricity

 Electricity Sales Tariff for Consumers from Contracted Electricity Supply Companies



Distribution System Users

Capacity

Active Energy + Distribution



 

Reactive Energy

Within Capacity

Over Capacity

Standard

Day

Busy Hours

Night

Kuruş/kWh

Kuruş/kWh

Kuruş/kWh

Kuruş/kWh

Kuruş/kWh

Kuruş/kWh

Kuruş/kWh

Medium voltage

Double Period

Industry

308,4076

616,8152

58,3534

59,0259

91,1790

33,0753

30,2874

Single Period

Industry

YOK

YOK

59,1740

59,8467

91,9998

33,8960

30,2874

Low Voltage

Single Period

Industry

YOK

YOK

65,6963

66,3688

98,5219

40,4182

30,2874

System Usage Tariffs of Private Electricity Suppliers for Consumers *
 

Capacity

Distribution Tariff

Reactive Energy

Within Capacity

Over Capacity

Kuruş/kWh

Kuruş/kWh

Kuruş/kWh

 Kuruş/kWh

Medium voltage

Double Period

Industry

308,4076

616,8152

9,2797

30,2874

Single Period

Industry

YOK

YOK

10,2502

30,2874

Low Voltage

Single Period

Industry

YOK

YOK

15,8592

30,2874

Multiple tariff application for November-March period: 07.00-18.00 daytime; 18.00-22.00 peak hours; 22.00-07.00 night. 

Multiple tariff application for April-October period: 06.00-17.00 during the day; 17.00-22.00 peak hours; 22.00-06.00 night.

Including Capacity: The monthly fixed fee calculated per kW over the "contract power" specified in the connection agreement and applied to the two-term consumers connected to the distribution system.

Capacity Excess: Monthly fee applied to two-term consumers connected to the distribution system by calculating per kW for the power exceeding the "contract power" specified in the connection agreement. 

Double Term Tariff: Tariff class consisting of "distribution fee applied over active energy flow (kWh) received from or given to the distribution system" + capacity load calculated per kW specified in the connection contract + capacity excess fee for power (in kW) exceeding the "contract power" .

Single Period Tariff: Tariff class applied only for the distribution fee over the active energy flow (kWh) received from or given to the distribution system.

* Active energy is not reflected in the table as its price is determined bilaterally between the consumer and the supplier. 


Calculation of Electricity Bill:

 

[(Tüketim (kWh) x Active Energy Price * (Kuruş/kWh) x 1,02**) + (Consumption (kWh) x Distribution Tariff (Kuruş/kWh))] x 1,18*** 

Active Energy Price *: Consumers can buy electricity from contracted electricity supply companies at the prices specified in the table or bilaterally agreed upon with private electricity suppliers.

** Funds (electricity fund 1%, electricity consumption tax 1%)

*** VAT 0.18%


Source: Energy Market Regulatory Authority (EMRA)

3.Sanayi Amaçlı Su Maliyeti

Industrial Water Cost


Reference Price USD / m3

Customer Type


Water

Waste water

Water VAT (%)

Industry

1,76

Dâhil

8


Reference Price USD / m3


Organized

Industrial Zones (OIZ)

Water

Water VAT (%)

Waste water

Waste Water VAT (%)

Eskişehir OIZ

0,11

8

0,10

8

Antalya OIZ

0,11

8

-

-


Source: Istanbul Water and Sewerage Administration (ISKI)

Eskişehir Water and Sewerage Administration and Antalya Water and Sewerage Administration

1 USD = 6.86 TL (Based on the rate of 1 July 2020)
           

  1. Cost of Natural Gas

Cost of Natural Gas


Gas Sales Tariff for Consumers who have signed a Natural Gas Sales Agreement with BOTAŞ

 


TL/kWh

TL/Sm³


Less than 300,000 Sm³

0,11763647

1,251652

OIZ

0,12638816

1,393000


Above 300,001 Sm³

0,13157895

1,40000


Gas Bill Calculation:

Consumption (Sm³) x (Tariff per Sm³ + 0.023 TL * + Transportation Tariff per Sm³ **) x 1.18 ***

* 0,023 TL / Sm³: Special Consumption Tax

** Transportation Tariff / System Usage Tariff (see the websites of the relevant gas distribution companies)

*** 0.18% VAT

Source: Pipelines and Petrol Transportation Corporation (BOTAŞ)

Excluding SCT and VAT

 5.Broadband Service Fees

6.       Broadband Service Fees

Fibernet and Hipernet


(USD / month)

Download Speed (Mbps) - unlimited tariff

Price

Up to 24

13,84

Up to 35

16,02

Up to 50

20,39

Up to 100

21,85

Up to 1000

127,41


Metro Ethernet and G.SHDSL

It depends on the needs

Source: TTNET, Superonline

All taxes are included.

1 USD = 6.86 TL (Based on the rate of 1 July 2020)