Company Car Expense Limit Calculator (Turkey)
Enter the rent, depreciation, purchase taxes and running costs of a rented or owned passenger car. The deductible amount, the non-deductible part and its tax cost are worked out under the Income Tax Law caps.
- Deductible rent552,000.00 ₺
- Rent above the cap168,000.00 ₺
- Non-deductible VAT on the excess33,600.00 ₺
- Deductible running costs (70%)168,000.00 ₺
- Non-deductible running costs (30%)72,000.00 ₺
- Total deductible720,000.00 ₺
- Share disallowed27.54%
- Tax effect of the disallowance68,400.00 ₺
Passenger car limits: GİB (Gelir Vergisi Genel Tebliği) / Resmî Gazete
Useful-life list: GİB
VAT rates: GİB / Cumhurbaşkanlığı (CB kararı)
Corporate tax rates: GİB
Income tax brackets: GİB / Hazine ve Maliye Bakanlığı
How it is calculated
Article 40 of the Income Tax Law caps the costs of passenger cars used in business, and companies follow the same rule (Corporate Tax Law Art. 6). The rent cap applies per car and per month; for daily hire the monthly cap is divided by the days of the month. An owned car is depreciated only for the months left in its first year, the rest being written off in the fifth year. The amounts are raised by the revaluation rate in an Income Tax General Communiqué published each December and apply from January.
KKEG = (Kira − Sınır)⁺ × Ay × (1 + KDV) + Amortisman × (1 − Sınır ÷ Maliyet)⁺ + (ÖTV+KDV − Sınır)⁺ + Giderler × %(100 − 70)For each rented passenger car, rent up to ₺46,000 a month excluding VAT is deductible; the excess and its VAT are not. For an owned car, depreciation counts on at most ₺1,380,000 of cost excluding ÖTV and VAT, or ₺2,600,000 when those taxes are added to cost or the car is second-hand; ÖTV and VAT expensed at purchase may not exceed ₺1,200,000. These are the 2026 amounts; the depreciation and purchase-tax caps of the year the car was bought apply for its whole life. 70% of fuel, servicing, repairs, insurance and similar costs is deductible.Example
A car rented in 2026 for ₺60,000 a month excluding VAT is ₺14,000 over the cap: ₺168,000 a year plus ₺33,600 of VAT is not deductible. ₺72,000 of ₺240,000 running costs is disallowed too. ₺273,600 in all costs a company ₺68,400 at 25% corporate tax.
Frequently asked questions
Is the rent cap with or without VAT?
Without VAT. In 2026, rent up to ₺46,000 a month is deductible. The VAT on the excess cannot be reclaimed and is non-deductible as well (VAT Law Art. 30/d).
Which costs does the 70% rule cover?
70% of running costs such as fuel, servicing, repairs, tyres, insurance and parking is deductible. Rent, depreciation and purchase taxes have their own amount caps instead of the 70% rule. Motor vehicle tax is never deductible.
Are vans and pick-ups covered?
No. The caps apply to passenger cars of customs heading 87.03, not to vans or pick-ups. Special-purpose vehicles such as ambulances or hearses are outside them too.
What happens to the disallowed depreciation when the car is sold?
If depreciation was booked on the full cost and the excess added back each year, the total added back may be deducted from profit under “other deductions” in the year of sale.