Türkiye Enacted New Tax Incentive Package: An Overview of Updates and Amendments

Through Law No. 7582 on Amendments to Certain Laws (Law No. 7582), published in the Official Gazette dated 04.06.2026, significant regulations concerning taxation, investment, exports, and technology entrepreneurship have entered into force.

Within the scope of the regulation, long-term tax exemptions are introduced for foreign-source income, while new incentives are provided for qualified service centers, exporting companies, and tech startups.

In addition, the legislation aims to increase international capital inflows and strengthen the investment environment through measures designed to bring assets into the economy. Accordingly, the objectives include enhancing Türkiye’s global competitiveness, supporting high value-added activities, and developing the technology ecosystem.

The innovations and amendments under the Law are summarized below:

Corporate Income Deduction in Transit Trade

Pursuant to the amendment made to subparagraph (i) of the first paragraph of Article 10 of the Corporate Tax Law No. 5520 (CTL), 95% of the income derived from (i) the sale abroad of goods purchased from abroad without being brought into Türkiye, or (ii) intermediary services in relation to the purchase and sale of goods conducted abroad, may be deducted from the corporate income tax base. For corporations operating in the Istanbul Financial Center (IFC) and in industrial zones to be designated by the President, the deduction rate will be 100%.

To benefit from this deduction, the relevant income must be transferred to Türkiye by the deadline for filing the annual corporate income tax return. In addition, for intermediary activities, neither the buyer nor the seller of the goods subject to the transaction may be located in Türkiye.

This provision will apply to income derived from tax periods beginning on or after 1 January 2026 and will be effective starting with corporate tax returns required to be filed on or after 1 July 2026.

Qualified Service Center Regime

Pursuant to the provision introduced to the Foreign Direct Investment Law No. 4875 (Law No. 4875), 95% of the foreign-sourced income exclusively within the scope of the activities of corporations operating as a “Qualified Service Center” as defined under the relevant regulation (100% for entities operating within the IFC and in industrial zones to be designated by the President) may be deducted from corporate income pursuant to subparagraph (j) added to Article 10 of the CTL. A Qualified Service Center is defined as a corporation that renders services to affiliated group entities operating in at least three jurisdictions and derives no less than 80% of its income from related foreign associated enterprises.

To benefit from this deduction, the relevant income must be transferred to Türkiye by the deadline for filing the annual corporate tax return. This deduction is limited to 20 accounting periods, commencing from the accounting period in which the Qualified Service Center becomes operational.

This provision will apply to income derived from tax periods beginning on or after 1 January 2026 and will be effective starting with corporate tax returns required to be filed on or after 1 July 2026.

Wage Tax Exemption for the Qualified Service Personnel

Pursuant to the provision added to the Income Tax Law No. 193 (ITL), an income tax exemption is granted to qualified service personnel employed by qualified service centers as defined under Law No. 4875, with respect to employment income up to three times the gross minimum wage (or up to five times the gross minimum wage in the case of qualified service centers operating within the IFC and in industrial zones designated by the President).

In addition, documents related to these wages are exempt from stamp duty.

This provision entered into force on 04.06.2026.

Reduced Corporate Tax Rates for Manufacturing and Agricultural Production Income

Pursuant to the amendment made to the eighth paragraph of Article 32 of the CTL, the corporate tax rate shall be applied as 12.5% to income derived exclusively from manufacturing activities by corporations holding an industrial registration certificate and actually engaged in manufacturing activities, as well as to income derived exclusively from agricultural production activities by corporations engaged in such activities.

For income benefiting from the reduced rate under this paragraph, the 5 percentage-point reduction applicable to export income as regulated under the seventh paragraph of Article 32 of the CTL shall not be applied additionally.

This provision entered into force on the date of its publication and shall apply to income derived in 2027 and subsequent taxation periods.

Deduction Opportunity in the Domestic Minimum Top-up Tax Base

Pursuant to the amendment made to Article 32/C of the CTL and the newly added subparagraph (d), the transit trade income deduction (Article 10/1(i)), the qualified service center income deduction (Article 10/1(j)), and the financial services export income deduction within the scope of subparagraph (a) of the first paragraph of Article 6 of the Istanbul Financial Center Law may also be taken into account in the calculation of the domestic minimum corporate tax base. Accordingly, the erosion of these incentives within the minimum tax base is prevented.

New Regulation on Repatriation of Assets into the Economy

With the provisional Article 19 added to the CTL, a new asset repatriation arrangement has been introduced to encourage real persons and legal entities to bring into the Turkish economy cash, foreign currency, gold, shares, bonds, and other securities located abroad or not recorded in their statutory books and records. Cash, gold, foreign currency, securities, and other capital market instruments located abroad must be declared by real persons or legal entities to banks or intermediary institutions in Türkiye by 31 July 2027. The declared assets must be transferred, within two months from the date of declaration to accounts opened in their names with banks or intermediary institutions in Türkiye, or, if physically brought from abroad, deposited into such accounts.

In this context, a tax of 5% on the value of the declared assets is collected in advance. However, depending on the commitment to hold the declared asset in certain investment instruments (term deposit accounts, domestic government debt securities and lease certificates, and private equity investment fund participation shares):

• In case of a commitment to hold for at least 1 year, 4%,
• In case of a commitment to hold for at least 2 years, 3%,
• In case of a commitment to hold for at least 3 years, 2%,
• In case of a commitment to hold for at least 4 years, 1%,
• In case of a commitment to hold for at least 5 years, 0%, tax shall be applied at the respective rates.

In addition, for notifications made between 1 January 2027 and 31 July 2027, the above rates shall be increased by half a percentage point. No stamp duty shall be levied on the undertakings given within this scope.

Although a guarantee is provided that no tax inspection or tax assessment will be carried out in relation to the declared assets; if the assets are not transferred within the prescribed period, taxes are not paid on time, or the undertakings are breached, this protection shall not apply.

This provision entered into force on 04.06.2026.

Facilitated Financing and Tax Exemptions for Technology Start-ups

With the paragraphs added to Article 3 of the Law No. 5746 on the Support of Research, Development and Design Activities, two provisions have been introduced concerning technology and innovation-oriented enterprises:

• In contingent capital increases based on convertible debt instruments of non-public companies granted a “Tech Start-up Badge” by the Ministry of Industry and Technology, the provisions applicable to contingent capital increases shall not apply. This measure facilitates technology start-ups in raising investment through convertible debt agreements.
• Digital companies established by entrepreneurs who have qualified as “incubatee” entrepreneurs under Law No. 4691 shall be exempt from chamber registration fees at the incorporation stage, and from chamber dues for a period not exceeding three years during their initial operating phase.

This provision entered into force on 04.06.2026.

Extension of Incentives for the IFC

Amendments introduced to Law No. 7412 on the Istanbul Financial Center (“IFC Law”) provide that: 

• The scope of the income tax exemption granted under the IFC Law, which was previously applicable to “financial institutions holding a participant certificate,” has been broadened by replacing this wording with “participants,” thereby extending the scope of the exemption.
• The duration of the 100% corporate tax reduction applicable to entities operating within the IFC has been extended until 204
• The exemption period for financial activity fees has been extended from five years to twenty years.

This provision entered into force on 04.06.2026.

20-Year Foreign-Sourced Income Exemption for Individuals Relocating to Türkiye and 1% Inheritance and Gift Tax Rate

Through Repeated Article 20/D added to ITL; foreign-source income of individuals who were non-residents in Türkiye for the last 3 years is exempt from tax for 20 years. However, expenses relating to such income and gains shall not be deductible from the tax base, and taxes paid abroad shall not be creditable against income tax in Türkiye.

The provision shall enter into force on the date of its publication and shall apply retroactively to persons deemed resident in Türkiye as of 1 January 2026.

In addition, pursuant to the new paragraph added to Article 16 of the Inheritance and Inheritance and Gift Tax Law No. 7338, a 1% inheritance tax rate applies to transfers by inheritance occurring within the twenty-year exemption period in respect of beneficiaries of this exemption.

Tax Incentives for Employees of Tech Start-up Companies

With the amendment to Article 17 of the ITL; in the income tax exemption applied to share certificates granted to qualified service personnel employed in qualified service centers previously defined in the additional Article 1 of Law No. 4875, the amount that can be included within the scope of the exemption has been increased from one times to two times the annual gross salary.

Holding period rules are also revised as:

• Sale within 2 years: 100% of exempt tax is collected from the employer,
• Sale between 3–4 years: 75% is collected with late interest,
• Sale between 5–6 years: 25% is collected with late interest.
• A full exemption is granted for holding periods exceeding six years, whereas this threshold was previously set at twelve years under the former regulation.
• The provision entered into force on 4 April 2026.

Installment of Public Debts

Pursuant to the amendment made to Article 48 of Law No. 6183 on the Procedure for the Collection of Public Receivables, the maximum deferral period for public receivables has been extended from 36 months to 72 months, and the upper limit for the deferred amount without requiring collateral has been increased from TRY 250,000 to TRY 1,000,000.

This provision entered into force on 04.06.2026.