A-FOR CORPORATE TAX

Pension funds profit are exempted from corporate income tax.

B-FOR INCOME TAX:

25% of payments to individuals who acquired retirement and left pension system because of unavoidable excuse (death, disability or liquidation of the funds, etc.) are exempted from withholding and income tax.

Including retirement salaries, remaining part of the payments to contributors are accepted as revenue and subject to withholding tax rather than by declaration.

For this reason, payments to contributors by pension and insurance companies are taxed as below:

a) Individuals who left the pension system within 10 years are subjected to a %15 withholding tax.

b) Individuals who contribute for 10 years or more but left the pension system before acquiring retirement and individuals who contribute to an other insurance system and left because of unavoidable excuse (such as death, disability or liquidation of the funds) is are subjected to a withholding tax at the rate of %10.

c) Individuals who acquired retirement from pension system or left the pension system because of unavoidable excuse (such as death, disability or liquidation of the funds) is are subjected to a withholding tax at the rate of %5.