Income Tax Exemption for Employees' Wages in Qualified Service Centers

On July 4, 2026, the Income Tax General Communiqué (Serial No. 334) was published in the Official Gazette No. 33300, setting out the procedures and principles governing the implementation of the wage income tax exemption introduced under Article 23 of the Income Tax Law No. 193 by Law No. 7582.

Under the Communiqué, the portion of the wages paid to qualified service personnel employed in Qualified Service Centers, as defined in Additional Article 1 of the Foreign Direct Investment Law No. 4875, up to three times the gross minimum wage is exempt from income tax.

For Qualified Service Centers operating in industrial zones established under Industrial Zones Law No. 4737 and approved by the President based on their concentration of foreign investment, as well as Qualified Service Centers operating within the İstanbul Finance Center under a participant certificate, the exemption applies to the portion of wages up to five times the gross minimum wage.

The exemption covers monthly salaries, overtime pay, bonuses, premium payments, and all other payments treated as wages. In addition, the portion of wages exempt from income tax is also exempt from stamp tax. Any amount exceeding the applicable exemption threshold remains subject to income tax and stamp tax in accordance with the general provisions of the legislation.

The Communiqué also sets out the eligibility requirements for the exemption, the implementation procedures, and illustrative examples. It further clarifies the matters that employers should consider when preparing payrolls and filing withholding tax and social security premium returns.

The Communiqué entered into force on July 4, 2026, the date of its publication in the Official Gazette, and its provisions are administered by the Ministry of Treasury and Finance.

You may access the relevant announcement here. (In Turkish)