Ankara: Turkey's government will cut corporate tax rates to 25 per cent from 30 per cent next year, economic officials said on Thursday, as part of a plan to align the country with rival emerging economies.
The officials, who declined to be named, told Reuters that the government planned to cut the tax rate by a further 10 percentage points over four years starting from 2007.
This would mean corporate tax falling to 15 per cent by 2010, one percentage point below the lowest tax level in rival emerging markets, the officials said.
Turkey is competing with such countries as the Czech Republic, Romania and Slovakia and believes lower corporate tax will greatly bolster foreign capital investment.
"Investors look at tax rates in making their decisions. In rival countries, corporate tax have fallen as low as 16 per cent and they have already started studies to cut them further," an economy official said.
The cut in corporate tax is also aimed at enlarging the tax base and reducing the unregistered economy, the officials said.
