Self-employment receipt calculator
On a self-employment receipt (serbest meslek makbuzu), income tax withholding is deducted from the gross fee and VAT is added on top. If the client receiving the receipt is a company, a public institution, or another self-employed professional, it withholds the tax and pays it to the tax office itself; no withholding applies to individual clients. You can enter the amount as gross, net, or the amount you will actually collect.
Rates used
- Income tax withholding: Income Tax Law No. 193, m.94/2-b; applied to the gross fee on payments for self-employment earnings.
- VAT: self-employment services are subject to the general rate; VAT is calculated on the gross fee and is not affected by withholding.
- Net to gross: gross = net ÷ (1 − withholding rate). Amount collected to gross: gross = amount collected ÷ (1 − withholding rate + VAT rate).
Frequently asked questions
- What is the withholding tax rate on a self-employment receipt?
- Income tax is withheld on the gross fee (GVK m.94/2-b); the rate is 20%. If the recipient of the receipt is a company, a public institution or a self-employed professional, it withholds the tax and pays it to the tax office itself.
- How do you calculate gross from net?
- Gross fee = net fee ÷ (1 − withholding rate). For example, at 20% withholding, a net fee of 20.000,00 TL corresponds to a gross fee of 25.000,00 TL. The amount to collect is found by deducting withholding tax from the gross fee and adding VAT.
- Is there withholding tax on a receipt issued to an individual client?
- No. If the payer is not required to withhold tax (for example, an individual with no business activity), no withholding tax is deducted; the amount to collect is the gross fee plus VAT.
- What amount is VAT calculated on?
- VAT is calculated on the gross fee and is not affected by withholding tax; the rate is 20%. VAT withholding generally does not apply to legal services; there are exceptions for services provided to certain recipients.