07.05.2026 08:00
In the 15-article tax package adopted by the Turkish Grand National Assembly's Planning and Budget Commission, three important regulations stood out. The package introduces a corporate tax reduction for exporters and manufacturing companies, while for those bringing money, gold, and foreign currency from abroad to Turkey, it proposes reducing the tax rate to zero under certain conditions. Additionally, the maximum installment period for public debts has been extended from 36 months to 72 months.
Striking regulations closely concerning the economy and the business world were included in the 15-article tax package adopted by the Turkish Grand National Assembly (TBMM) Planning and Budget Commission. The package provides corporate tax reductions for producer and exporter companies, and envisages reducing the tax rate to zero under certain conditions for those who bring their foreign assets to Turkey. The restructuring period for public debts was also doubled, raising it to 72 months.
OPPORTUNITY TO DEFER PUBLIC DEBTS UP TO 72 MONTHS The Draft Law on Amendments to Certain Laws, which includes tax regulations, was adopted in the TBMM Planning and Budget Commission. With the draft, amendments are made to the Law on the Procedure for Collection of Public Receivables. Accordingly, if paying the public debt on time or executing a lien or converting seized assets into cash would place the public debtor in a very difficult situation, the public receivable may be deferred by the creditor public administration or the authorities it authorizes for a period not exceeding 72 months, with interest, provided that the debtor makes a written request and provides collateral.
NO COLLATERAL REQUIREMENT FOR UP TO 1 MILLION LIRA If the total deferred debts of the public debtor to the creditor collection offices do not exceed 1 million lira, the collateral requirement will not be sought. For the deferment of public receivables exceeding this amount, the mandatory collateral to be provided will be half of the portion exceeding 1 million lira. The President will be authorized to increase this amount up to 10 times, reduce it by half, bring it back to the legal amount, and determine different amounts between these limits for creditor public administrations.
NEW RATE FOR INHERITANCE AND TRANSFER TAX With the provision added to the Inheritance and Transfer Tax Law, for those whose earnings and income obtained outside of Turkey are exempt from income tax within the scope of the Income Tax Law to encourage the inflow of foreign resources, the tax rate to be applied to inheritance transfers subject to inheritance and transfer tax during the period of benefiting from the aforementioned exemption will be 1 percent.
TAX EXEMPTION FOR SHARES OF TECH VENTURE EMPLOYEES With the amendment to the Income Tax Law, a regulation is made regarding the income tax exemption for shares considered as wages, given free of charge or at a discount by employers to personnel working in tech venture companies that meet the criteria determined by the Ministry of Industry and Technology.
Accordingly, the upper limit that can be subject to exemption is re-determined as twice the gross wage for the relevant year. Additionally, by shortening the holding periods of shares acquired in this way, it is regulated that if these shares are disposed of within 2 years from the date of acquisition, the entire exempted tax will be collected; if disposed of within 3 to 4 years, 75 percent of the exempted tax; and if disposed of within 5 to 6 years, 25 percent of the exempted tax, along with late payment interest, from the employer.
TAX EXEMPTION FOR EARNINGS AND INCOME OBTAINED FROM ABROAD A new article titled "Tax exemption for earnings and income obtained from abroad" is being introduced to the Income Tax Law. Accordingly, earnings and income obtained outside Turkey by real persons considered residents of Turkey will be exempt from income tax for 20 years, provided that they have had no residence or tax liability in Turkey in the last 3 calendar years before being considered a resident of Turkey.
Having tax liability in Turkey due to real estate capital income, securities capital income, or capital gains obtained in Turkey before falling under this scope will not prevent benefiting from this exemption. No annual tax return will be filed for these earnings and income, and if a return is filed for other income, these incomes will not be included in the return. Expenses and costs related to exempt earnings and income will not be taken into account when determining taxable earnings and income.
TAXES PAID IN FOREIGN COUNTRIES CANNOT BE OFFSET Taxes paid in foreign countries due to earnings and income within this exemption scope cannot be offset against the income tax assessed in Turkey. If it is later determined that the conditions for the exemption are not met, the unassessed taxes will be deemed to have been lost. The Ministry of Treasury and Finance will be authorized to determine the procedures and principles regarding the implementation of the provision. This provision will enter into force on the date of its publication, to apply to those considered residents of Turkey as of January 1, 2026.
DEFINITION OF QUALIFIED SERVICE CENTER IS COMING With the draft, a new provision under the title "Qualified service center" is added to the Foreign Direct Investment Law. Accordingly, a qualified service center will refer to capital companies that are established to provide services to related companies or groups of companies actively operating in at least 3 different countries and to carry out the activities specified in the second paragraph, and that derive at least 80 percent of their annual revenue from related companies or groups of companies abroad.
ACTIVITY AREAS OF QUALIFIED SERVICE CENTERS ARE DETERMINED These centers will provide services such as financial consultancy, strategic management consultancy, risk management, cash and liquidity management, funding and borrowing transactions, investment and capital structure planning, budgeting, financial reporting and analysis, international accounting and compliance, auditing, digital transformation and technology consultancy, investment and data analysis, legal consultancy, promotion, brand management, human resources and training services, as well as coordination and management services related to these services; and coordination and management services for activities such as sales, after-sales support, technical support, research and development, outsourcing, testing of newly developed products, and laboratory services.
Employees who directly perform services within this scope and are not support personnel will be considered qualified service personnel. The Ministry of Industry and Technology, after obtaining the opinion of the Ministries of Treasury and Finance and Trade, will be authorized to determine the procedures and principles regarding the implementation of this provision.
INCOME TAX EXEMPTION FOR QUALIFIED SERVICE PERSONNEL According to the amendment to the Income Tax Law, an income tax exemption will apply to the portion of wages of qualified service personnel employed in qualified service centers as defined in the Foreign Direct Investment Law that does not exceed 3 times the gross minimum wage (5 times the gross minimum wage for qualified service centers operating in the Istanbul Finance Center after receiving a participation certificate).
The President will be authorized to determine the multiples of 3 and 5 mentioned in this paragraph together or separately down to one multiplier, and to increase them up to two times.
TAX REDUCTION FOR TRANSIT AND QUALIFIED SERVICE ACTIVITIES With the proposal, amendments are being made to the Corporate Tax Law. Accordingly, the deduction rate for profits derived from the sale of goods purchased abroad without bringing them into Turkey, or from intermediating in the purchase and sale of goods abroad, will be 95% (for institutions that have obtained a participant certificate in accordance with the provisions of the Istanbul Financial Center Law and operate in the Istanbul Financial Center Region, this rate will be 100%).
To benefit from this deduction, it will be necessary for the profit to have been transferred to Turkey by the due date for filing the annual corporate tax return for the accounting period in which the profit was earned, and for the seller and buyer of the goods related to the intermediation activity not to be located in Turkey. The President will be authorized to reduce the aforementioned rates to zero or increase them up to 100%.
95% DISCOUNT FOR QUALIFIED SERVICE CENTERS The deduction rate for profits obtained exclusively from abroad by institutions operating as qualified service centers within the scope of the Direct Foreign Investments Law, within the scope of these activities, will be 95% (for institutions that have obtained a participant certificate in accordance with the provisions of the Istanbul Financial Center Law and operate as qualified service centers in the Istanbul Financial Center Region, this rate will be 100%).
The aforementioned deduction will be applied for 20 accounting periods starting from the accounting period in which the qualified service center commenced operations, provided that the profit is transferred to Turkey by the due date for filing the annual corporate tax return for the accounting period in which the profit was earned. The President will be authorized to reduce these rates to 50% or increase them up to 100%. This provision will enter into force on its date of publication, starting from the declarations required to be submitted as of July 1, 2026, and effective for corporate profits pertaining to the taxation period beginning on January 1, 2026.
NO TAX AUDIT FOR ASSETS ABROAD According to the Draft Law on Amendments to Certain Laws, which includes tax-related regulations, if real or legal persons report money, gold, foreign currency, securities, and other capital market instruments located abroad to banks or intermediary institutions by July 31, 2027, no tax audit or tax assessment will be conducted regarding the amounts corresponding to the said assets.
12.5% CORPORATE TAX FOR PRODUCTION AND AGRICULTURAL ACTIVITY PROFITS With the proposal accepted by the TBMM Plan and Budget Committee, amendments are being made to the Corporate Tax Law. Accordingly, the corporate tax rate will be applied as 12.5% to the profits obtained exclusively from production activities by institutions holding an industrial registration certificate and actually engaged in production activities, and to the profits obtained exclusively from agricultural production activities by institutions engaged in agricultural production activities. For profits benefiting from the deduction under this provision, the additional 5-point deduction applied to export profits will not be applied.
This provision will enter into force on its date of publication, to be applied to profits obtained in 2027 and subsequent taxation periods, and for institutions subject to a special accounting period, to profits obtained in the special accounting period starting in the calendar year 2027 and subsequent taxation periods.
NEW CALCULATION IN DOMESTIC MINIMUM CORPORATE TAX With the amendment made to the provision titled "Domestic Minimum Corporate Tax" in the Corporate Tax Law, a regulation will be made regarding the deduction of discounts provided for transit trade and qualified service center profits, as well as the corporate tax profit deduction provided for financial service exports under the Istanbul Financial Center Law, from the corporate profit that forms the basis for calculating the domestic minimum corporate tax. This provision will enter into force as of its date of publication, starting from the declarations required to be submitted as of July 1, 2026, and effective for corporate profits pertaining to the taxation period beginning on January 1, 2026 (for institutions assigned a special accounting period, the accounting period beginning on January 1, 2026).
ASSETS BROUGHT FROM ABROAD AND GAINED TO THE ECONOMY It is aimed to encourage real and legal persons to bring money, foreign currency, gold, stocks, bonds, and other securities they own to Turkey and gain them to the national economy, in line with the goal of increasing voluntary tax compliance. According to the provision added to the Corporate Tax Law, in order to increase voluntary tax compliance, real or legal persons will report money, gold, foreign currency, securities, and other capital market instruments located abroad to banks or intermediary institutions by July 31, 2027. Assets reported within this scope must be transferred to accounts opened in their names at banks or intermediary institutions in Turkey within 2 months from the date of reporting, or assets brought physically from abroad must be deposited into these accounts. Assets brought physically from abroad will be documented with documents related to the declaration made to the Customs Administration upon entry into the country. The Customs Administration will report the declarations it receives within this scope to the Revenue Administration by the end of the month following the month of receipt.
UNDECLARED DOMESTIC ASSETS WILL ALSO BE REPORTED Money, gold, foreign currency, securities, and other capital market instruments owned by income or corporate taxpayers and located in Turkey but not included in statutory book records will be reported to banks or intermediary institutions by July 31, 2027. It will be mandatory to document the reported assets by depositing them in banks or intermediary institutions as of the reporting date. Assets reported within this scope will be recorded in statutory books by taxpayers who keep books in accordance with the Tax Procedural Law as of the reporting date. Taxpayers keeping books on a balance sheet basis will open a special fund account on the liability side for the assets they record in their statutory books pursuant to the provisions within this scope. This fund account cannot be withdrawn from the business unless 2 years have passed from the reporting date. It cannot be used for any purpose other than capital increase. In case of liquidation of the business, it will not be taxed. Taxpayers keeping books on a freelance earnings ledger and business account basis will show the said assets separately in their books. These assets will not be taken into account in determining the period profit and may be withdrawn from the business, subject to the condition that 2 years have elapsed from the reporting date, without being taken into account in determining taxable profit and, for corporations, distributable profit.
THOSE WHO ARE NOT INCOME OR CORPORATE TAX PAYERS WILL ALSO BENEFIT Those who are not subject to income or corporate tax will benefit from these provisions without seeking these conditions, provided that they bring their declared assets to Turkey within the specified period and verify their domestic assets by depositing them with banks or intermediary institutions as of the declaration date.
TAX RATE WILL VARY ACCORDING TO MATURITY Banks and intermediary institutions will declare the tax collected in advance at a rate of 5 percent on the value of the assets from the declarant regarding the declared assets, to the tax office they are affiliated with, through a declaration by the evening of the 15th day of the month following the declaration, and pay it within the same period. The tax rate will be applied as 0 percent if it is committed that the declared asset will be kept in time deposit accounts or in government domestic borrowing securities and lease certificates issued under the Law on the Regulation of Public Finance and Debt Management for at least 5 years, 1 percent if committed for at least 4 years, 2 percent if committed for at least 3 years, 3 percent if committed for at least 2 years, and 4 percent if committed for at least 1 year. For declarations made from January 1, 2027, to July 31, 2027 (inclusive), these rates will be increased by half a point.
IF THE PERIOD EXTENDS, THE TAX RATE WILL INCREASE If the date of July 31, 2027, is extended by authority, the tax rate for declarations made after this date will be applied with an additional half-point increase, totaling a 1-point increase. The tax paid under this provision shall not be recorded as an expense under any circumstances and shall not be offset against any other tax. Losses arising from the disposal of assets subject to declaration shall not be accepted as expenses or deductions for income or corporate tax purposes.
NO TAX AUDIT OR ASSESSMENT WILL BE CONDUCTED ON DECLARED ASSETS No tax audit or tax assessment will be conducted under any circumstances regarding the amounts corresponding to the declared assets. Measures required under other legislation shall not be affected by this regulation. If it is determined that the tax inspection initiated for other reasons or the tax difference found as a result of the appraisal commission decisions arises due to the assets declared under this article, and if the declared asset amount is equal to or greater than the tax difference found, no assessment will be made regarding the tax difference. If the tax difference found is larger than the declared asset amounts despite the determination that it arose due to the declared assets, a tax assessment will be made only on the difference amount. If a tax difference is determined due to reasons other than the assets subject to declaration as a result of tax inspections or appraisal commission decisions, an assessment will be made without deducting the declared amounts from the tax difference found.
THOSE WHO DO NOT COMPLY WITH THE CONDITIONS WILL NOT BENEFIT FROM THE REGULATION If the declared assets are not brought to Turkey or transferred to an account to be opened at a bank or intermediary institution in Turkey within 2 months from the date of declaration, or if they are not deposited with banks or intermediary institutions within the specified period, if the taxes assessed on the declared amounts are not paid on time, if commitments are not complied with, or if other conditions in this provision are not fulfilled, the benefit of the provision regarding tax assessment and audit shall not be available. Additionally, taxes not assessed on time will be collected with late payment interest without applying a tax loss penalty. For declarations made under this provision after the date on which a tax inspection has been initiated or referred to the appraisal commission, this regulation shall not apply to the assessments made as a result of such inspections or appraisal commission decisions. The failure to pay the assessed tax at its due date shall not prevent the follow-up and collection of the principal tax together with late payment surcharge under the Law on the Collection Procedure of Public Receivables. Collected taxes shall not be refunded or returned. No corrections can be made to declarations after the declaration period has ended.
AUTHORITY TO EXTEND THE PERIOD TO THE PRESIDENT The President is authorized to extend the date of July 31, 2027, for periods not exceeding 6 months each time, up to one year from the end date, and the Ministry of Treasury and Finance is authorized to determine the issues related to the bringing of assets covered by the provision to Turkey, their declaration, and their inclusion in the business, the form for declaration and reporting, the information and documents to be used in the implementation of the provision, and the procedures and principles regarding the implementation.
NEW REGULATION FOR COMPANIES WITH TECH STARTUP BADGE The proposal includes a regulation in the Law on Supporting Research, Development and Design Activities. Accordingly, the provisions of the Turkish Commercial Code regarding conditional capital increases will not apply to conditional capital increases to be made by non-public companies holding the "Tech Startup" badge issued by the Ministry of Industry and Technology, based on convertible debt agreements. The procedures and principles for conditional capital increases of companies within this scope will be determined by the Ministry of Industry and Technology, upon the opinion of the Ministry of Trade.
3-YEAR DUES EXEMPTION FOR DIGITAL COMPANIES Companies established and operated by entrepreneurs who have become eligible to be incubator entrepreneurs under the Technology Development Zones Law, in compliance with the definition of digital company to be determined by the Ministry of Industry and Technology, will be exempt from fees and dues defined in the relevant provision of the Law on the Union of Chambers and Commodity Exchanges of Turkey and the Chambers and Commodity Exchanges for up to 3 years from the date of establishment.
INCOME TAX DEDUCTION IN ISTANBUL FINANCE CENTER EXPANDS According to the amendment made to the Istanbul Finance Center Law, the income tax deduction applied to financial institutions in the Istanbul Finance Center when employing personnel with overseas experience is expanded to cover all participants.
INCENTIVES IN ISTANBUL FINANCE CENTER EXTENDED UNTIL 2047 The period for the corporate tax deduction applied at 100 percent for the earnings of institutions operating financially by obtaining a participant certificate in the Istanbul Finance Center is extended until 2047. Additionally, the exemption provided to these institutions for 5 years regarding financial activity fees for their establishment and permits is increased to 20 years.