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How Much Is Signage Tax in Turkey? Calculation and Payment Steps

Signage tax is the tax businesses pay to the municipality for their signs, based on a rate that, as of 2024, has changed from the previous year.

Advertising (signage) tax

Signage tax (officially the advertising tax, "ilan ve reklam vergisi") is the tax businesses pay to the municipality (belediye) for their signs, based on a rate that, as of 2024, has changed from the previous year. The amount due varies by type of sign. The tax is worked out using a set calculation method and paid within the specified dates. If the payment is late or not made at all, penalties may apply.

Company and brand advertising takes place within municipal boundaries, so the tax has to be paid to the relevant municipality. For this reason, payment methods can differ from one municipality to another. You can, however, get a good idea of how much you will owe by following the calculation steps for signage tax. A number of factors, chiefly the sign's area in square metres and whether it is illuminated or not, can change the amount due.

How Is Signage Tax Calculated?

The rate set by the municipality is multiplied by the size of the sign, which gives the amount due. The tax rates for illuminated and non-illuminated signs are also different, so the type of sign, like its size, determines the final figure. Legal regulations on the tax also have a direct effect on the amount.

As for how much signage tax you will pay, the amount essentially depends on the sign's size, its features and where it is used. To calculate the tax, first measure the width and height of your sign. Multiply the two measurements together to get the area of your sign. For calculating signage tax in Alanya, it is also essential to establish whether your sign is illuminated or non-illuminated, because the tax rate differs between the two.

The final step is to find out your local municipality's tax tariff. With this information you can work out how much tax you need to pay.

What Is Signage Tax Exemption?

Signage tax exemption means you do not have to pay the tax if certain conditions are met. Under the relevant law, businesses with signs of half a square metre or less are not required to pay signage tax. To qualify for the exemption, the sign must also be non-illuminated. Businesses with non-illuminated signs of half a square metre or less can benefit from the exemption. At Pegasus Reklam we offer very special designs in non-illuminated signs, and you can choose from our sign models that may allow you to benefit from the exemption.

How Can You Be Exempt From Signage Tax?

To be exempt from signage tax, the sign must not carry advertising content, must not be illuminated and must be half a square metre or smaller. Signs that meet these conditions fall outside the scope of the tax. Under the advertising and signage tax rules, it is important that you generally meet the following conditions for exemption:

  • The sign should show only the business name, contact details and address. In other words, it must not contain any advertising content.
  • The sign you use at your business should be designed to be non-illuminated.
  • Make sure the sign does not exceed half a square metre. In addition to these conditions, certain institutions may also be exempt, usually under special circumstances. Institutions that can be exempt from signage tax include schools, pharmacies and public institutions. Family name plates used on residences are also not taxed.

If you want your business to benefit from the exemption, you do not need to make a special application. More information on the subject is available on your local municipality's website, where you can check the announcements it publishes on the topic.

When Is Signage Tax Paid in Alanya?

In the Alanya district, according to the municipality's announcements, it is paid by the last day of January. By 31 January, you must calculate the tax using the signage tax rate per square metre, submit a declaration and pay the amount due. There are several ways to pay, and you can use whichever method you prefer.

Not paying on time can lead to penalties. For late payments, interest is calculated based on the amount due and the number of days overdue. So to avoid penalties, it is very important to pay between 1 January and 31 January.

How Many Times a Year Is Signage Tax Paid?

Signage tax, with the amount determined through the signage tax calculation, is paid once a year. If you pay your tax between 1 January and 31 January, you will not need to pay again for the rest of the year. If you do not pay within those dates or forget to pay, you will still have to pay later. Because a late-payment surcharge is added, you may end up paying more than the original amount.

As signage tax is administered by municipalities, there may be changes to how payments work. That is why it is very important to contact your municipality to check whether anything has changed regarding payments.

What Happens If Signage Tax Is Not Paid?

If the tax, including shop signage tax, is not paid, penalty proceedings are started against the business. A late-payment surcharge applies after the 31 January deadline. On top of the surcharge, penalty proceedings may be started if you do not pay the signage tax, and the penalty can be set at up to 25% of the tax owed.

The late-payment surcharge for overdue tax is set each year by the Ministry of Finance, so the amount can change from year to year. Ignoring the penalty on top of the surcharge can lead to enforcement proceedings (icra takibi): the municipality starts debt-enforcement action to collect the payment. And if the payment is still not made despite the municipality's legal sanctions, the sign may ultimately be removed. All of these consequences can follow from not paying the tax.

Putting up a sign at your business may not be mandatory; see our latest article for details.

Where Is Signage Tax Paid in Alanya?

In Alanya, signage tax is paid to your local municipality. Payment systems can differ between municipalities, so you should follow the municipality's announcements to make sure you pay correctly and in full. The tax for illuminated signs and non-illuminated signs can also differ, so it is very important to establish this before you pay. Sign size can also change the amount. As mentioned above, you can also be exempt from the tax if certain conditions are met, so you may need to know the exemption conditions.

Where Is Signage Tax Paid?

Signage tax is paid to municipalities using set methods. Many municipalities now offer online payment and have moved to systems that make paying over the internet easy. Traditional payment methods are also still available, so you can pay however you like.

The main methods for paying the tax are:

  • Municipal Cash Desk: You can pay by cash or credit card at the municipality building.
  • PTT Branches: Payments can be made directly at PTT (Turkish Post) branches.
  • Online Municipal Services: You can pay online through the relevant section of the municipality's website. Using any of these methods, you can make your payment easily.

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