KKTC Income Tax Guide
Everything you need to know about Northern Cyprus income tax in one place - with interactive calculators, rates, and expert tips.
Showing tax rates and deductions for year 2025
Tax Rate
10-37%
Progressive
Basic Exemption
480,000 ₺
Annual
Filing Deadline
April 30
For previous year
Payment Due
July & Nov
2 installments
Northern Cyprus Income Tax Guide
A comprehensive guide to understanding and optimizing your tax position in KKTC.
Tax Rates & Deductions
Current tax brackets, personal deductions, and business expense guidelines for informed tax planning.
Tax Planning Tools
Practical examples, calculation formulas, and a year-end checklist to help manage your tax obligations.
Important Deadlines
Key filing dates and payment schedules to ensure compliance with Northern Cyprus tax requirements.
KKTC Income Tax Guide 2025 | Northern Cyprus Tax Rates & Calculator
Income Categories
The tax law recognizes 8 different types of income, each with specific rules and potential deductions.
Employment Income
Salary, bonuses, benefits, severance pay (taxable portion).
Business Income
Sale of goods/services, e-commerce profits.
Professional Income
Lawyer, doctor, software developer, etc.
Agricultural Income
Agriculture & livestock revenue.
Real Estate Income
Rental income, property rights.
Property Sale Gains
Real estate sales with special exemptions.
Capital Income
Interest, dividends, repo transactions.
Other Income
Compensation, license fees, etc.
Personal Deduction Table (2025)
Understanding available deductions is essential for tax optimization. Below are the deductions available for 2025.
| Deduction | Rate | Annual (TL) | Description |
|---|---|---|---|
| Basic (taxpayer) | Fixed | 480,000 ₺ | Automatically applied |
| Special Deduction (On Net Income) (A) | 10.00% | - | For employees and lump-sum taxation |
| Special Deduction (On Net Income) (B) | 10.00% | - | For others not mentioned above |
| Spouse Deduction (A) | 8.00% | 38,400 ₺ | For spouse living together |
| Spouse Deduction (B) | 4.00% | 19,200 ₺ | Alimony paid to divorced spouse |
| Child Deduction (A) | 6.00% | 28,800 ₺ | Children under 16 not in education, in primary education, or unmarried daughters without income |
| Child Deduction (B) | 8.00% | 38,400 ₺ | Children under 20 in secondary education in TRNC, in military service (except reserve officer), under 18 in secondary education outside TRNC, permanently disabled |
| Child Deduction (C) | 11.00% | 52,800 ₺ | Children aged 18-27 in higher education |
| Child Deduction (D)(i) | 15.00% | - | For the third child |
| Child Deduction (D)(ii) | 5.00% | - | For each additional child (cumulative) |
| Disability and Old Age Deduction (A) | 15.00% | 72,000 ₺ | For those who have lost at least 50% of their working capacity |
| Disability and Old Age Deduction (A) | 30.00% | 144,000 ₺ | For those who have lost 100% of their working capacity |
| Disability and Old Age Deduction (B) | 5.00% | 24,000 ₺ | For taxpayers aged 65 and above |
| Social Security Expenses | 19.00% | - | Employer contribution |
| Social Security Expenses | 13.00% | - | Employee contribution |
| Other Expenses (1) | - | Amount paid in relevant year | Municipal Professional Tax |
| Other Expenses (2) | - | Amount paid in relevant year | Municipal Professional Tax |
* Note: After all expenses, exemptions and social security contributions are deducted.
** Child deductions: If spouses have separate incomes, child deductions are divided equally between spouses.
Income Tax Rates (2025)
The KKTC uses a progressive tax system with increasing rates for higher income brackets.
| Tax Base | Cumulative Base | Rate | Bracket Tax | Cumulative Tax |
|---|---|---|---|---|
| 45,000 | 45,000 | %10.00 | 4,500 | 4,500 |
| 45,000 | 90,000 | %20.00 | 9,000 | 13,500 |
| 120,000 | 210,000 | %25.00 | 30,000 | 43,500 |
| 190,000 | 400,000 | %30.00 | 57,000 | 100,500 |
| 0 | 400,000 and above | %37.00 | - | - |
Annual Personal Exemption: 480,000 ₺
Annual
Annual Personal Exemption: 480,000 ₺
| Tax Base | Cumulative Base | Rate | Bracket Tax | Cumulative Tax |
|---|---|---|---|---|
| 3,750.00 | 3,750.00 | %10.00 | 375.00 | 375.00 |
| 3,750.00 | 7,500.00 | %20.00 | 750.00 | 1,125.00 |
| 10,000.00 | 17,500.00 | %25.00 | 2,500.00 | 3,625.00 |
| 15,833.33 | 33,333.33 | %30.00 | 4,750.00 | 8,375.00 |
| 0.00 | 33,333.33 and above | %37.00 | - | - |
Monthly Personal Exemption: 40,000.00 ₺
Monthly (12 Salaries)
Monthly Personal Exemption: 40,000.00 ₺
| Tax Base | Cumulative Base | Rate | Bracket Tax | Cumulative Tax |
|---|---|---|---|---|
| 3,461.54 | 3,461.54 | %10.00 | 346.15 | 346.15 |
| 3,461.54 | 6,923.08 | %20.00 | 692.31 | 1,038.46 |
| 9,230.77 | 16,153.85 | %25.00 | 2,307.69 | 3,346.15 |
| 14,615.38 | 30,769.23 | %30.00 | 4,384.61 | 7,730.77 |
| 0.00 | 30,769.23 and above | %37.00 | - | - |
Monthly Personal Exemption: 36,923.08 ₺
Monthly (13 Salaries)
Monthly Personal Exemption: 36,923.08 ₺
Deductible Business Expenses for Sole Traders
Essential expenses you can deduct from business income
Sponsorship & Donations
Up to 10% of net profit
Requirement: To state organizations, sports clubs, approved charities
Education, health, culture, sports, science only
Representation & Entertainment
Manufacturing/export: 4% of gross income, Others: 2%
Requirement: Business entertainment and representation costs
Cannot exceed percentage limits, cannot be carried forward
Asset Depreciation
As per Tax Procedure Law rates
Requirement: Business equipment, machinery, vehicles (1600cc max)
Includes office equipment, computers, furniture
Operating Expenses
100% of business costs
Requirement: Rent, utilities, phone, internet, insurance
Must be exclusively for business use
Employee Costs
Full deduction including benefits
Requirement: Salaries, SSI contributions, meal/transport allowances
Must be properly documented with payrolls
Finance Costs
Interest on business loans
Requirement: Loans must be for business purposes
Stock purchases, equipment finance, working capital
Non-deductible: Personal withdrawals, family salaries (unless working), home-work commute, personal rent
Year-End Tax Planning Checklist
Essential tasks to optimize your tax position before year-end
Document Collection
- Gather all income statements
- Collect business expense receipts
- Update family status documents
- Medical and disability certificates
Deduction Verification
- Verify spouse employment status
- Update children education status
- Calculate social security contributions
- Review special deduction eligibility
Tax Optimization
- Review income/expense timing
- Carry forward applicable losses
- Maximize deductible donations
- Review asset depreciation
Filing Preparation
- Schedule accountant appointment
- Organize financial records
- Plan tax payment schedule
- Mark filing deadlines
Complete these tasks before December 31st to maximize your tax benefits for the current year.
Tax Calculation Examples for 2025
Practical examples demonstrating tax calculations for common scenarios.
Scenario A — Single, No Children
1,000,000 ₺ gross annual income
Tax calculation:
- 0−45,000 × 10% 4,500 ₺
- 45,000−90,000 × 20% 9,000 ₺
- 90,000−210,000 × 25% 30,000 ₺
- 210,000−400,000 × 30% 600 ₺
Scenario B — Married, Non-working Spouse + 2 Children
Same 1,000,000 ₺ gross annual income
Personal deductions:
- Basic 480,000 ₺
- Spouse 38,400 ₺
- Child 1 (Secondary education) 38,400 ₺
- Child 2 (University) 52,800 ₺
Tax calculation:
- First 210,000 ₺ (per brackets) 13,500 ₺
- 210,000−290,400 × 30% 7,272 ₺
Tax Calendar and Payment Deadlines
Important deadlines for tax filing and payments to maintain compliance with KKTC tax law.
Annual Filing & Payment Deadlines
Annual Tax Return Filing
- April 30 - Standard filing deadline for previous year
- 4 months after year-end - Non-calendar year businesses
- 1 month before departure - Leaving the country
Income Tax Payment Schedule
- 2 equal payments: July 31 and November 30
- Monthly plan: Equal monthly amounts through December
- If disputed: Undisputed portion per schedule, balance 1 month after resolution
Penalty Structure
Late Payment Penalties
Monthly late interest on unpaid amounts
Plus potential tax evasion penalties for willful non-payment
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