15.05.2026 00:50
In the Turkish Grand National Assembly General Assembly, the first 5 articles of the 'Law Proposal on Amendments to Certain Laws,' which also includes regulations on asset peace, were accepted. With the proposal, the earnings and income obtained abroad by persons considered resident in Turkey will be exempt from income tax for 20 years, provided that they have no residence or tax liability in Turkey in the last 3 calendar years before being considered resident in Turkey.
The General Assembly of the Grand National Assembly of Turkey (TBMM) convened under the chairmanship of Deputy Speaker Pervin Buldan to discuss the 'Draft Law on Amendments to Certain Laws', which includes regulations on asset peace.
FIRST 5 ARTICLES OF THE DRAFT ACCEPTED
Following non-agenda speeches, 1-minute speeches by deputies, evaluations by group deputy chairs, and discussions on motions submitted by political party groups to the TBMM Presidency, the draft was taken up. As a result of the discussions, the first 5 articles of the draft were accepted.
DEFERRAL POSSIBLE FOR UP TO 72 MONTHS WITH GUARANTOR
According to the accepted articles, amendments are made to the 'Law on the Collection Procedure of Public Receivables'. If the payment of public debt at maturity, the execution of a lien, or the liquidation of seized assets places the debtor in a very difficult situation, deferral can be applied for up to 72 months with the provision of a guarantor. No collateral requirement will be imposed if the debtor's total debt does not exceed 1 million lira. For debts exceeding this amount, the mandatory collateral will be half of the portion exceeding 1 million lira. The President will be authorized to increase this amount up to tenfold or reduce it by half.
Another article amends the 'Income Tax Law'. Accordingly, income and earnings obtained outside Turkey that are exempt from income tax, or property transfers by inheritance subject to inheritance and transfer tax during the period of exemption, will be taxed at a rate of 1 percent.
With another accepted article, a regulation is made on the income tax exemption for shares provided free of charge or at a discount by employers to personnel working in techno-enterprise companies that meet criteria determined by the Ministry of Industry and Technology, which are considered as wages. Accordingly, the upper limit subject to exemption will be redefined as twice the gross wage for the relevant year.
“INCOME AND EARNINGS OBTAINED OUTSIDE TURKEY BY INDIVIDUALS WILL BE EXEMPT FROM INCOME TAX FOR 20 YEARS”
With the draft, income and earnings obtained outside Turkey by individuals deemed resident in Turkey will be exempt from income tax for 20 years, provided that they had no residence or tax liability in Turkey in the last 3 calendar years before being deemed resident in Turkey. Having a tax liability due to real estate capital income, securities capital income, or capital gains obtained in Turkey before falling under this provision will not prevent benefiting from this exemption. No annual declaration will be submitted for these earnings, and even if a declaration is filed for other income, these earnings will not be included. Expenses and costs related to exempt earnings will not be considered in determining taxable income. Taxes paid in foreign countries due to earnings within this exemption scope cannot be offset against income taxes assessed in Turkey. If it is later determined that the conditions for the exemption are not met, unassessed taxes will be considered as lost. The Ministry of Treasury and Finance will be authorized to determine the procedures and principles for the implementation of this provision. This provision will enter into force on its date of publication, to be applied to those deemed resident in Turkey from January 1, 2026.
INTERNATIONAL AGREEMENT BETWEEN TURKEY AND OECD ACCEPTED
Following the acceptance of the first 5 articles of the draft, discussions began on the 'Draft Law on the Approval of the Protocol on the Renewal of the Memorandum of Understanding on the Establishment of the Istanbul Center' between Turkey and the Organisation for Economic Co-operation and Development (OECD). Deputy Speaker Buldan read the articles one by one and put them to a vote. As a result of the vote, the draft was accepted.
GENERAL ASSEMBLY ADJOURNED
Subsequently, Deputy Speaker Buldan adjourned the session, to reconvene on Wednesday, May 20, at 14:00.