Sole Proprietorship vs Limited / Joint-Stock Company Tax Comparison
Compare, with a simplified model, income tax on a sole proprietorship with corporate tax and dividend withholding in a Turkish limited or joint-stock company.
Things to keep in mind
- Profit retained in the company only escapes dividend withholding for now: when it is distributed later it bears dividend withholding (and possibly the shareholder's declaration). A lower distribution ratio usually defers the tax rather than removing it.
- Simplified: declaration of dividends in the shareholder's annual return (50% exemption, declaration threshold) is ignored and may add tax.
- Salaries, social security, minimum corporate tax, provisional tax, incentives and non-tax costs are not included.
Calculator
Result
Enter the values and press Calculate to see the result here.
About this tool
A simplified model of how the same taxable profit is taxed:
- Sole proprietorship: the whole profit is taxed at the progressive income tax tariff for non-wage income.
- Limited or joint-stock company: corporate tax on profit; the chosen share of after-tax profit is paid out as dividend with withholding tax, the rest stays in the company.
Both company types are treated the same. Consult an adviser before deciding.
How to use
- Enter annual taxable profit.
- Enter the share of after-tax profit distributed.
- Press Calculate; difference = company total tax − sole proprietorship tax.
Notes
Tariff, corporate tax rate and dividend withholding rate are kept with effective dates and sources.
Frequently asked questions
Under the general rules both pay the same corporate tax and dividend withholding, so this model treats them alike.
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Last updated: September 30, 2026