In today's economy, where digitalization has radically changed the way of doing business, some legal obligations continue to maintain their importance. Stamp tax is one of these obligations. This type of tax, which is often heard of but the details are not fully known, is one of the most common financial issues that companies face but also one of the most common mistakes. From a service contract to a payroll, from a lease agreement to a digital confirmation letter, stamp tax is a financial item that cannot be ignored for SMEs and large-scale companies.
This guide is part of Finrota's mission to reduce the complexity of businesses' financial operations. In this comprehensive 2025-specific content, we aim to eliminate all question marks regarding stamp duty. With in-depth coverage of the latest rates, accurate calculation methods, declaration and payment processes, critical exemptions and ways to avoid potential penalties, we will help your business achieve tax compliance and maintain financial health. We know how important it is to ensure transparency and control in financial processes. This guide is a roadmap to help you achieve this control in stamp tax.
Definition and Purpose of Stamp Tax
Stamp tax, in its simplest definition, is a type of transaction tax levied on “papers” that document legal and official transactions between individuals and individuals, individuals and institutions, or institutions and institutions, and have the power of proof. Beyond being a source of revenue for the state, this tax has two other main purposes: The first is to formalize the agreements between the parties; the second is to strengthen fiscal control by recording these legal transactions. Therefore, the stamp tax functions not only as a cost element but also as a mechanism that supports the legal validity of contracts and agreements.
Which Documents (“Papers”) are Taxable?
According to the Stamp Tax Law No. 488, which sets out the legal framework of stamp tax, the subject of the tax is "papers". However, one of the biggest mistakes made at this point is to think of the term "paper" only as physical documents. The Law has expanded this definition by adapting to the realities of the modern business world.
The term "paper" refers to documents that are issued by writing and signing or by putting a signature or a signature substitute for a signature and that can be submitted to prove or specify any matter, as well as documents created in magnetic media and in the form of electronic data by using an electronic signature.
This broad definition clearly demonstrates that the stamp duty obligation does not disappear in the digitalization processes of businesses, on the contrary, every document produced on digital platforms may fall within this scope. In today's world, where financial technology solutions have become widespread, companies produce a large number of contracts, agreements and confirmation documents through online platforms. This makes it almost impossible to ensure tax compliance with manual tracking, increasing the importance of automation and digital tracking systems.
The main types of paper subject to tax are as follows:
- Contracts - Letter of Undertaking and Assignment - Lease Agreements - Bail, Guarantee and Pledge Deeds - Tender Decisions and Contracts - Payrolls - Receipts and Release Notes - Financial Statements (Balance Sheets, Income Statements) - Tax Declarations
Who is the Taxpayer of Stamp Tax?
According to Law No. 488, the taxpayer of stamp tax is the signatories of the taxable papers. If more than one party signs a document, all of these parties are jointly and severally liable for the payment of the tax.
The parties may agree on who will pay the tax through an agreement between them. For example, a clause such as "The stamp tax arising from the agreement will be shared by the parties in half" can be added to a contract. Such a clause regulates the sharing of financial obligations between the parties. However, this internal agreement is not binding on the Tax Office. When the Tax Office detects an unpaid tax, it has the right to demand the full amount of the debt from any of the signatory parties.
Is VAT Included in the Stamp Tax Base?
This is one of the most common mistakes businesses make, which leads to unnecessary costs. In accordance with the established opinion of the Revenue Administration and the Stamp Tax General Communiqué Serial No. 30, the answer is clear: No, Value Added Tax (VAT) is not included in the stamp tax base.
If the price in a contract is stated as "1.000.000 TL + VAT", the stamp tax base is 1.000.000 TL. If the consideration is stated as "1.200.000 TL (including VAT)", the VAT must be separated from this amount and the amount excluding VAT must be taken as the tax base before the stamp tax is calculated. Skipping this simple rule may cause the company to pay thousands of liras more tax, especially in high value contracts. Paying attention to this detail provides a simple tax base optimization and a hidden cost advantage.
