Led by central bank, financial institutions top corporate taxpayers in 2018

Published 20.11.2019 17:42
Updated 20.12.2019 01:49

Among the top 100 corporate taxpayers in 2018, financial institutions, including the central bank, financial leasing companies, and public and private lenders, paid the highest amount with TL 21.4 billion

Turkey’s Revenue Administration (GIB) announced Wednesday the top corporate and income taxpayers in 2018. The top 10 both in corporate and income taxpayers posted slight changes compared to the previous year, yet banks dominated the list as they paid the highest amount of corporate tax last year. The amount of corporate tax paid by financial institutions, including commercial banks, insurance companies, and financial leasing firms, totaled TL 21.4 billion.

According to the list of the Revenue Administration, Turkey secured TL 85.3 billion in tax revenues last year. The Central Bank of the Republic of Turkey (CBRT) ranked first in corporate tax payments with TL 10.6 billion, accounting for approximately 12% of the aggregate corporate tax revenues. The central bank was followed by the state lender Ziraat Bank, which paid TL 2.4 billion in corporate tax last year. While private lender Garanti Bank ranked third on the list, it paid TL 1.5 billion in taxes. Turkey’s İş bank that came fourth on the list paid TL 1.3 billion and was followed by Turkish Petroleum with TL 1.3 billion.

Steel producers İskenderun Demir ve Çelik and Ereğli Demir ve Çelik respectively registered TL 1.1 billion and TL 966 million in tax payments. Another public lender Vakıfbank ranked eighth with TL 940 million and was followed by Yapı Kredi Bank which paid TL 754 million. State-run mining and chemicals company Eti Maden, which was transferred to the Turkey Wealth Fund in early 2017, ranked 10th and paid TL 694.5 million in corporate tax last year.

The overall corporate tax paid by the finance institutions, 27 of which were listed among the top 100 taxpayers last year, totaled TL 21.4 billion.

Yapı Kredi Financial Leasing ranked 56th and Ziraat Participation Bank came 59th on the list. Borsa Istanbul and Vakıf Participation Bank ranked 68th and 71st, respectively. The Turkey Development and Investment Bank was also a newcomer to the list at the 83rd place.

While state lender Halkbank had ranked eighth in 2017, it could not make it onto the list last year. Moreover, DenizBank, Albaraka Türk, Mapfre Sigorta, Citibank, Anadolubank, Odea Bank and Aktif Investment Bank also fell out of the list of top 100 corporate taxpayers in 2018.

The private lender of the Sabancı Holding Akbank had come fourth in 2017 but fell to 21st place in 2018. ING, TEB, Turkish Industrial Development Bank (TSKB), Allianz Sigorta, Sompo Japan Sigorta, and Ziraat Sigorta also saw their ranking fell in 2018.

Compared to 2017, the amount of tax paid by the central bank rose by over 300%. The highest increase by the central bank was followed by participation bank Kuveyt Türk whose payments of corporate tax last year surged 127.1% The tax paid by Türkiye Finans and Garanti Emeklilik recorded 112% and 53.4% increase, respectively.

The highest drop in the corporate tax payments was recorded by Akbank. The bank’s payment of corporate tax decreased by 81.3% to TL 267.4 million, which had been Tl 1.4 billion in the previous year.

First two income taxpayers anonymous

While the first two biggest taxpayers chose to remain anonymous, Rahmi Koç was listed third. He paid TL 54 million in taxes in 2018, GIB data showed.

Koç, who is the honorary chairman of Turkey's largest conglomerate Koç Holding, also came third in the previous year's edition, paying TL 45.16 million.

Late billionaire entrepreneur Şarık Tara, who was Turkey's top taxpayer in 2017, paid TL 36 billion and was fourth. Tara died at the age of 88 in June 2018 after suffering from multiple organ failure. Turkey's richest man Erman Ilıcak was fifth with TL 35 billion paid in taxes.

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