• The Corporation tax rate applicable to both local and foreign companies is 10 %. Companies are also subject to %15 income taxes reaching composite 23.50%. There are the following exemptions:

• 20 % of the turnover obtained from exports is exempt from corporation tax, but this amount cannot exceed 80% of the net profit obtained from such exports.

• Foreign taxes paid on profits derived abroad can be deducted from corporation tax that is payable on the foreign profits.

• The profits of foreign transporters are arrived at by applying the following rates to their sales:

• Land and sea transport                   10%
• Air transport                                    5%

ALLOWABLE EXPENSES

Expenditure incurred wholly and exclusively for obtaining the net profit, except as explained below, can be deducted from income if they are substantiated.

Saloon car expenses
An amount at most equal to 50% of total saloon car expenses can be deducted.

Traveling expenses
There is no limitation on expenditure

Tickets
Companies engaged in either export or manufacturing can claim up to 50 days allowance.

Travel Allowance
Other companies can claim up to 30 days allowance.

Advertising
Cannot exceed 5% of gross profit.

Entertaining
Cannot exceed.
4% of gross profit for either export or manufacturing companies.
2% of gross profit for all other companies.

Donations
Cannot exceed 5% of net profit.