Key Tax Legislation Amendments Introduced by Law No. 7587

Law No. 7587 on Amendments to Certain Laws, enacted on June 24, 2026, introduced significant amendments directly affecting Turkish tax legislation, including the Income Tax Law, the Tax Procedure Law, the Value Added Tax (VAT) Law, and certain other special laws.

Expansion of the Turnover-Based Taxation Regime for Taxi Services

With the amendment to Article 113 of the Income Tax Law, taxpayers engaged in taxi passenger transportation may also benefit from the turnover-based taxation regime, provided that they:

• Carry out passenger transportation by taxi,
• Document all of their revenues through the mandatory taxi fiscal device and
• Do not use an electronic fare collection system.

Application to this regime is optional.

• The regime will apply as of the beginning of the calendar year following the application date.
• Taxpayers may benefit from the regime for a maximum period of three years.

Income Tax Exemption for the Transfer of Commercial Taxi and Public Transportation Licenses

A new Provisional Article 94 has been introduced to the Income Tax Law. Under this provision, gains derived from the transfer of commercial licenses for taxis, shared taxis (dolmuş), minibuses, and public shuttle vehicles that were owned prior to the effective date of the Law are exempt from Income Tax.

The exemption applies only to:

• Income taxpayers subject to taxation under the actual assessment method and
• Commercial transportation licenses acquired before the effective date of the Law.

New Framework for the Electronic Tax Notification System

Article 107/A of the Tax Procedure Law has been completely revised. The following taxpayers are required to use the electronic tax notification system:

• Corporate income taxpayers,
• Individuals deriving commercial, agricultural, or professional income subject to the actual assessment method,
• General partnerships and limited partnerships,
• Individuals and entities in whose name vehicles subject to registration under List (II) of the Special Consumption Tax Law are first registered.

Exemption

Individuals with a disability rate of 90% or above are exempt from the mandatory use of the electronic notification system. Electronic notifications shall be deemed duly served at the end of the fifth day following the date on which they are transmitted electronically.

Transitional Provision for Existing Electronic Notification Users

Pursuant to the newly introduced Provisional Article 38 of the Tax Procedure Law, taxpayers already registered in the electronic notification system will continue to use the system without the need to submit a new application.

Expansion of the Ministry's Authority under the Tax Procedure Law

The authority granted to the Ministry of Treasury and Finance under the repeated Article 257 of the Tax Procedure Law has been expanded. Accordingly, the Ministry's authority to increase certain thresholds and obligations, previously limited to twofold, has been extended to allow increases of up to fivefold.

VAT Exemption for Commercial Transportation License Transfers

Following the amendment to Article 17/4-a of the VAT Law, transfers of commercial transportation licenses benefiting from the Income Tax exemption under Provisional Article 94 of the Income Tax Law are now also exempt from VAT.

Extension of the VAT Exemption Period

The application period of the VAT exemption provided under Provisional Article 45 of the VAT Law, applicable to the supply of certain vehicles and equipment intended for national defense and internal security purposes, has been extended until December 31, 2028.

Petroleum Market Regulation Concerning Tax Evasion

Amendments to the Petroleum Market Law have revised the licensing measures applicable to facilities subject to tax investigations involving offences under Article 359 of the Tax Procedure Law, including:

• Issuing false invoices;
• Using false invoices;
• Issuing or using misleading documents as to their content; and
• Concealment of accounting books and records.

The scope of administrative measures relating to the issuance of licenses for such facilities has been redefined to strengthen coordination between tax enforcement procedures and the petroleum market regulatory framework.

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