LLC × residence calculator · Edition 2026.09
If you lived in Türkiye: how much tax you would pay on your LLC profit
Turkey has no 'check-the-box' regime: it looks at legal form, not the US tax election. GVK art. 22/4 refers to foreign entities 'with the nature of a joint-stock or limited company', which is exactly what an LLC is. The most defensible reading with the available text is to treat the profit as kâr payı (dividend) from a foreign kurum on distribution, with a 50% exemption and the general scale on the rest; there is no public ruling confirming this for a single-member LLC specifically.
Isaac Cubero · Checked on 14 September 2026 · worldwide income
At $100,000 of profit
On $100,000 of LLC profit, living in Türkiye, you would pay about $15,102 a year: a 15.1% effective rate.
worldwide income
| Foreign-entity dividend (kâr payı): 50% exemption (GVK art. 22/4) plus the 2026 general scale on the remainder | $15,102 |
| Estimated total | $15,102 |
Sources: Gelir Vergisi Kanunu, arts. 22 (dividend exemption), 37 and 103 (scale); Gelir Vergisi Genel Tebliği Series No. 332 (Official Gazette 31 Dec 2025) · Cumhurbaşkanı Kararı No. 11257 (Official Gazette 30 Apr 2026): lowers the art. 22/4 participation threshold to 20% · Cumhurbaşkanı Kararı No. 9286 (Official Gazette 22 Dec 2024): 15% dividend withholding · Kurumlar Vergisi Kanunu, art. 7 (CFC) and Law 7456 of 2023 (25% general rate) · Fixed exchange rate 49 TRY/USD.
Rank 22 of 38 residences by effective rate at this profit.
- Assumes Turkey treats the LLC as an opaque foreign kurum, not as direct accrual-basis business income; both readings are defensible and no public ruling settles which applies.
- 2026 Gelir Vergisi scale (Communiqué No. 332, Dec 2025), applied to the non-exempt half of the profit.
- Profit repatriated to Turkey on time; no Turkish withholding at source on the payment (it arrives directly from the foreign payer).
- The classification (kâr payı vs. ticari kazanç on an accrual basis) is the weakest link: no law, communiqué or published ruling settles it for a single-member LLC. Get your own ruling before making real decisions.
- If the correct reading were ticari kazanç (business income), the full profit would be taxed at the general scale without the 50% exemption, and on an accrual basis, not only on distribution.
- Turkey's CFC rule (KVK art. 7) can attribute undistributed profit if at least 25% of the LLC's income is passive and the foreign tax burden is under 10%; with active service income, it should not trigger.
- The 15% withholding on local dividends is a payment on account, not final, once the non-exempt half exceeds the second scale bracket (TRY 400,000 in 2026); it is credited against the final liability.
- Gelir Vergisi Kanunu, arts. 22 (dividend exemption), 37 and 103 (scale); Gelir Vergisi Genel Tebliği Series No. 332 (Official Gazette 31 Dec 2025)
- Cumhurbaşkanı Kararı No. 11257 (Official Gazette 30 Apr 2026): lowers the art. 22/4 participation threshold to 20%
- Cumhurbaşkanı Kararı No. 9286 (Official Gazette 22 Dec 2024): 15% dividend withholding
- Kurumlar Vergisi Kanunu, art. 7 (CFC) and Law 7456 of 2023 (25% general rate)
- Fixed exchange rate 49 TRY/USD.
At three profit levels
What you would pay in Türkiye depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $6,352 | 12.7% | $43,648 |
| $100,000 | $15,102 | 15.1% | $84,898 |
| $250,000 | $42,194 | 16.9% | $207,806 |
Brackets applied (Foreign-entity dividend (kâr payı): 50% exemption (GVK art. 22/4) plus the 2026 general scale on the remainder)
| Up to 380,000 TRY | 7.5% |
| From 380,000 TRY to 800,000 TRY | 10% |
| From 800,000 TRY to 2,000,000 TRY | 13.5% |
| From 2,000,000 TRY to 10,600,000 TRY | 17.5% |
| From 10,600,000 TRY to and above | 20% |
And if it were not an LLC
The five cheapest structures from Türkiye, distributing all the profit.
| Structure | Corporate | Withholding | You, in Türkiye | Total |
|---|---|---|---|---|
| US LLC | $0 | $0 | $15,102 | 15.1%$15,102 |
| UAE free zone | $0 | $0 | $15,102 | 15.1%$15,102 |
| Hong Kong Ltd | $8,250 | $0 | $13,658 | 21.9%$21,908 |
| Cyprus Ltd | $15,000 | $0 | $12,477 | 27.5%$27,477 |
| Bulgarian EOOD | $10,000 | $4,500 | $13,352 | 27.9%$27,852 |
Frequently asked questions
Does a US LLC pay tax if I live in Türkiye?
The LLC pays no US federal tax if it has no US activity. Turkey has no 'check-the-box' regime: it looks at legal form, not the US tax election. GVK art. 22/4 refers to foreign entities 'with the nature of a joint-stock or limited company', which is exactly what an LLC is. The most defensible reading with the available text is to treat the profit as kâr payı (dividend) from a foreign kurum on distribution, with a 50% exemption and the general scale on the rest; there is no public ruling confirming this for a single-member LLC specifically.
How much would I pay in Türkiye on $100,000 of profit?
On $100,000 of LLC profit, living in Türkiye, you would pay about $15,102 a year: a 15.1% effective rate. The figure comes from applying foreign-entity dividend (kâr payı): 50% exemption (gvk art. 22/4) plus the 2026 general scale on the remainder to the profit converted to TRY.
Is Türkiye a territorial country?
No: Türkiye taxes its residents' worldwide income. The LLC profit goes into your income tax under the country's rule (worldwide income).
Next
The figure is the start. The structure is the decision.
To see Türkiye against the other 37 residences: the full ladder.