HomeCost of Doing Business in Turkey

Cost of Doing Business in Turkey

http://www.invest.gov.tr/en-US/investmentguide/investorsguide/Pages/BusinessPremises.aspx

Minimum Monthly Wage (gross and net)
USD
Net Minimum Wage 382.02
Gross Minimum Wage 483.62
  • Social security premium payment (14%)
 67.69
  • Payment for unemployment insurance fund (1%)
 4.83
  • Income tax (15%)*
 25.39
  • Minimum living allowance**
 36.27
  • Stamp tax (0.759%)
 3.67
Total Deduction 101.60
Employer Cost
  • Gross minimum wage
 483.62
  • Employer’s share of social security premium (15.5%)***
 74.96
  • Employer’s payment for unemployment insurance fund (2%)
 9.67
Total Employer Cost 568.26
* Calculation of income tax is [(483.62 – 67.69 – 4.83) x 0.15] – 36.27 = 25.39

** For single individuals without children and may vary according to marital status and number of children.

*** For premiums that are paid in due time, as an incentive, a five-point reduction is applied (down from 20.5% to 15.5%).

Source: Ministry of Family and Labor

Valid for January 1, 2019 – December 31, 2019

USD 1 = TRY 5.29, as of January 2019

 

Cost of Electricity
Consumers Purchasing Electricity from Commissioned Supply Companies
Distribution System Users Capacity Active Energy + Distribution Reactive Energy
Capacity Charge Over-Capacity Charge Standard Daytime Peak Nighttime
TRYcent/kWh TRYcent /kWh TRYcent /kWh TRYcent /kWh TRYcent /kWh TRYcent/kWh TRYcent/kWh
Medium Voltage
Double Term
Industry 256.8597 513.7194 44.0625 44.5715 68.9052 24.9319 22.2020
Single Term
Industry N/A N/A 44.7785 45.2876 69.6214 25.6479 22.2020
Low Voltage
Single Term
Industry N/A N/A 49.7121 50.2210 74.5548 30.5814 22.2020
System Usage Tariffs for Consumers Purchasing Electricity from Private Suppliers*
Capacity Distribution Tariff Reactive Energy
Capacity Charge Over-Capacity Charge
TRYcent/kWh TRYcent/kWh TRYcent/kWh TRYcent/kWh
Medium Voltage
Double Term
Industry 256.8597 513.7194 6.8024 22.2020
Single Term
Industry N/A N/A 7.5139 22.2020
Low Voltage
Single Term
Industry N/A N/A 11.6255 22.2020
Multiple tariff application for November-March period: 07.00-18.00 daytime; 18.00-22.00 peak; 22.00-07.00 nighttime.

Multiple Tariff application for April-October period: 06.00-17.00 daytime, 17.00-22.00 peak; 22.00-06.00 nighttime

Capacity Charge: Monthly fixed-fee calculated per kW based on the “contract power” specified in connection contract and charged to double-term consumers connected to distribution system

Over-Capacity Charge: monthly fee calculated per kW for amount of power exceeding the “contracted power” specified in the connection contract and charged to double-term consumers connected to distribution system

Double-Term tariff: Tariff class charged for “distribution fee over the amount of active energy flow (kWh) received from the distribution system or given to the distribution system”, plus capacity-charge calculated per kW specified in the connection contract, plus over-capacity charge for the power (in kW) exceeding the “contract power.”

Single-term Tariff: The tariff class charged for distribution fee only through the amount of active energy flow (kWh) received from the distribution system or given to the distribution system.

*The active energy price is not reflected in the table, as the price is determined bilaterally between the consumer and the supplier.

Source: Energy Market Regulatory Authority (EMRA)

 

Cost of Water for Industrial Use
Reference Price USD/m3
Type of Customer Water Waste Water Water VAT (%)
Industry 2.17 Included 8
Reference Price USD/m3
Organized

Industrial Zones (OIZs)

 Water Water VAT (%) Waste Water Waste

Water VAT (%)
Eskişehir OIZ 0.12 8 0.12 8
Antalya OIZ 0.9 8 – –
Source: Istanbul Water and Sewerage Administration (ISKI)

Eskişehir Water and Sewerage Administration & Antalya Water and Sewerage Administration

USD 1 = TRY 5.29 as of January 2019

 

Cost of Natural Gas*
Gas Sales Tariff for Customers

that have a Signed a Gas Sales Agreement with BOTAS
USD/kWh USD/Sm³
Less than 300.000 Sm³ 0.016 0.168
OIZ 0.022 0.254
More than 300.001 Sm³ 0.022 0.255
Source: Petroleum Pipeline Corporation (BOTAS)

* Excluding SCT and VAT

USD 1 = TRY 5.29 as of January 2019

 

Cost of Broadband Services
Fibernet and Hypernet (USD/month)
Download Speed (Mbps) – unlimited tariffs Price
Up to 24 51
Up to 35 60
Up to 50 75
Up to 100 104
Up to 1000 165
Metro Ethernet and G.SHDSL Requirement specific
Source: TTNET, Superonline

All taxes included.

USD 1 = TRY 5.29 as of January 2019