05.03.2026 02:10
The bill proposing the termination of the deduction of gambling and betting advertising expenses from the tax base, the removal of tax exemptions for foundation university hospitals, the inclusion of certain precious stones within the scope of special consumption tax, the taxation of crypto assets, the narrowing of VAT exemptions, the increase of the paid military service fee, and the provision of discounts for cash payments to beneficiaries in the earthquake-affected region was approved by the TBMM Planning and Budget Commission.
The discussions on the "Draft Law on Amendments to Certain Laws," presented to the Grand National Assembly of Turkey (TBMM) by the AK Party on Monday, have been completed in the TBMM Planning and Budget Commission. The draft law, which foresees changes related to the economy, public administration, and various administrative practices, was accepted by the commission.
The proposal, which includes regulations in 13 different laws, stipulates that advertising expenses related to games of chance and betting will not be deductible from the tax base, the removal of corporate tax exemption for health institutions of foundation universities, the inclusion of certain precious stones within the scope of Special Consumption Tax, the inclusion of cryptocurrency assets within the scope of income tax and their taxation with transaction tax, the flexible determination of the state contribution to the Unemployment Insurance Fund, the increase of the fee for paid military service and its transfer to the Defense Industry Fund, a one-time payment discount for regions affected by the earthquakes on February 6, 2023, and the privatization of surplus real estate owned by public institutions are foreseen.
THE FEE FOR PAID MILITARY SERVICE IS INCREASED
The amount determined for paid military service will be increased. The amount resulting from the increase will be transferred to the Defense Industry Fund.
ADVERTISING EXPENSES FOR GAMES OF CHANCE AND BETTING WILL NOT BE DEDUCTIBLE FROM THE TAX BASE
According to the proposal, advertising expenses related to games of chance and betting will not be accepted as expenses in determining the tax base for income and corporate tax taxpayers. Thus, these expenditures will be excluded from the scope of tax advantages.
CORPORATE TAX FOR FOUNDATION UNIVERSITY HOSPITALS
The corporate tax exemption for hospitals and similar health institutions operating within foundation universities will be removed. With this regulation, it will be ensured that these institutions are subject to the same tax obligations as other taxpayers.
Some precious stones will be included within the scope of special consumption tax. Thus, taxation on luxury consumption items will be expanded.
CRYPTO ASSETS ARE INCLUDED IN THE INCOME TAX LAW
The proposal states that cryptocurrency assets will be defined in the Income Tax Law, and the framework for their taxation will be clarified. A transaction tax will be levied on the buying and selling of cryptocurrency assets. In return, these transactions will be exempt from value-added tax. The regulation aims to provide tax certainty for those operating in the cryptocurrency market.
THE POWERS OF TAX OFFICIALS WILL BE CLEARLY REGULATED IN THE LAW
The proposal also includes a clear definition of the duties, powers, and responsibilities of tax officials in the Law No. 5345 on Certain Regulations Related to the Revenue Administration.
The President will be authorized to increase or decrease the state contribution to the Unemployment Insurance Fund. Surplus real estate owned by public institutions can be sold by the Privatization Administration.
DISCOUNT FOR RIGHT HOLDERS IN THE EARTHQUAKE REGION
In the areas declared as disaster zones due to the earthquakes on February 6, 2023, significant discounts will be applied to the rights holders for the housing and workplaces built there, provided that they request a cash payment.
REGULATION LIMITING VAT REFUNDS REMOVED FROM THE PROPOSAL
With the proposal submitted by the AK Party, the eighth article, which foresaw limitations on VAT refunds in the law proposal, regulating the deliveries to the Red Crescent, the delivery of housing to foreigners, and the transformation of full exemption in public facilities and health services into partial exemption, was removed from the proposal.
With another proposal, the eleventh article regulating the privatization of public real estate was amended. It was determined which law would be applied in privatizations under the article that foresees the privatization of surplus real estate and the transfer of revenues to the relevant public institution. Accordingly, it was clearly stated that the provisions of the Law No. 4046 on Privatization Practices would be applied with the regulation made.
Again, with another proposal, the phrase "The Institution's Board of Directors is authorized to reduce or increase the amount determined based on the revaluation rate" was removed from the article that clarifies the scope of benefits and assistance exempted from the earnings subject to premium and regulates disputes arising from the meal fee.
Changes were also made to the article that includes regulations on VAT, which foresees partial exemption for economic enterprises in housing rentals, exemption from VAT for cryptocurrency asset deliveries, and exemption from VAT for the transfer of expropriated real estate. Accordingly, the phrase that foresees the regulation of "the exemption of housing rent" was removed from the proposal text.
With the proposal submitted by the AK Party, a new article was added to the proposal. Accordingly, the profits obtained by taxpayers engaged in production activities in free zones from the products they manufacture in these areas will be exempt from income or corporate tax when exported abroad, to the free zone, or to other regions. With the new regulation, the profits obtained by taxpayers in free zones will be exempt from income and corporate taxes.
Additionally, the effective date of the new article regulating the exemption for taxpayers in free zones added to the proposal text was changed by the submitted proposal to "to be applied to profits obtained as of January 1, 2026."