In April 2026, the Turkish President and the Minister of Finance brought forward a legislative proposal that we expect to enter into force in the next few weeks.
This attractive tax package introduces key incentives to promote the relocation of international operations to Turkey and encourage financial service providers to operate within the Istanbul Financial Center. The package includes a competitive 12.5% corporate tax rate for manufacturers, implements a non-dom regime, and offers amnesty for large, undeclared incomes with a tax capped at 5%. Together, these measures create significant opportunities for tax planning and position Turkey as a new hub for investment.
The regulations included in the Law Proposal are summarized below.
1. Extension of the postponement period for public receivables
With Article 1 of this Law Proposal, within the scope of the amendment made to Article 48 of Law No. 6183, the postponement period is extended from 36 months to 72 months, and the unsecured postponement amount is increased from 250,000 TL to 1,000,000 TL.
2. Reduced rate in inheritance and transfer tax
With Article 2 of this Law Proposal, for individuals whose income and revenues obtained outside of Turkey are exempted from income tax within the scope of duplicate Article 20/D of the Income Tax Law, it is envisioned that the inheritance and transfer tax on property transfers via inheritance during the period of benefiting from said exemption will be levied at a rate of 1%.
3. Share certificate incentive provided to techno-enterprise employees
With Article 3 of this Law Proposal, the upper limit of the income tax exemption regarding the shares given to employees in techno-enterprise companies is determined as twice the gross salary in the relevant year; furthermore, the periods for the clawback of the exemption depending on the holding periods are restructured.
4. Income tax exemption on foreign sourced income ("non-dom" rule)
With Article 4 of this Law Proposal, within the scope of the duplicate Article 20/D added to the Income Tax Law, it is envisioned that the income and revenues obtained outside of Turkey by real persons who have not been resident in Turkey in the last three calendar years will be exempted from income tax for a period of 20 years. In this context, it is regulated that no tax return shall be filed for the said income, expenses and costs cannot be deducted, and taxes paid abroad cannot be offset.
5. Wage exemption for qualified service personnel
With Article 5 of this Law Proposal, an income tax exemption up to four times the gross minimum wage is provided for the wages of qualified service personnel employed in qualified service centers, together with the minimum wage exemption utilized by all employees. It is regulated that this exemption will be applied as six times in total for those working in qualified service centers to operate in the Istanbul Financial Center.
6. Definition of the qualified service center model
With Article 6 of this Law Proposal, within the scope of the regulation added to Law No. 4875, a “qualified service center” is defined. It is envisioned that companies operating in at least three countries and deriving at least 80% of their revenue from abroad will be considered within this scope. In other words, moving the headquarters of companies operating on a global scale to Turkey is encouraged through a significant exemption.
7. Deduction on transit trade and service export earnings
With Article 7 of this Law Proposal, within the scope of the amendment made to Article 10 of the Corporate Tax Law, it is envisioned that 95% (100% in IFC) of transit trade and qualified service center earnings can be deducted from the corporate tax base.
8. Reduced corporate tax rate on export and production earnings
The eighth paragraph of Article 32 of Law No. 5520 has been amended as follows:
“(8) The corporate tax rate shall be applied as 12.5% to the earnings derived exclusively from the production activities of corporations that hold an industrial registry certificate and are actively engaged in production activities, and to the earnings derived exclusively from these production activities of corporations engaged in agricultural production activities. No further deduction shall be applied under the seventh paragraph for earnings that benefit from the reduced rate under this paragraph.”
9. Regulation regarding the minimum corporate tax base
With Article 9 of this Law Proposal, it is enabled that the earnings deductions provided within the scope of transit trade, qualified service center, and Istanbul Financial Center can be deducted from the minimum corporate tax base.
10. Regulation on bringing assets into the economy (asset amnesty)
With Article 10 of this Law Proposal, a regulation is made regarding bringing the assets of real and corporate persons abroad into Turkey and declaring the assets located in Turkey but not included in the records. In this context, the notification deadline is determined as 31/7/2027; it is envisioned that the declared assets will be brought to Turkey or deposited into banks or intermediary institutions within certain periods, and it is enacted that no tax audit will be conducted if the conditions are met.
11. Financing and exemption regulations for techno-enterprises
With Article 11 of this Law Proposal, an exemption is introduced to certain provisions of the Turkish Commercial Code for the transactions to be carried out by companies holding a techno-enterprise badge within the scope of convertible debt contracts; furthermore, digital companies are provided with an exemption from chamber dues during their establishment and operation periods.
12. Expanding the scope of istanbul financial center incentives
With Article 12 of this Law Proposal, the income tax reduction applied in the case of employing personnel with international experience, which is provided to financial institutions in the Istanbul Financial Center, is expanded to cover all participants.
13. Extension of the istanbul financial center incentive period
With Article 13 of this Law Proposal, the duration of the tax advantage provided for financial activity earnings in the Istanbul Financial Center is extended until the year 2047; the period of exemption from fees is determined as 20 years.
Note: Within the scope of Pillar 2, the minimum global supplementary or domestic tax regulations in force in Turkey continue to be applied. There is no regulation that abolishes the Pillar 2 regulations. Therefore, it is necessary to emphasize that corporations, while benefiting from these exemptions, will continue to pay the minimum global tax. In this framework, an accurate analysis is performed by us and a compliance test is conducted. Heading 9 is unrelated to this matter.
