Law No. 7582 Introducing Significant Changes to Turkish Tax Legislation Published

Significant legislative amendments concerning income tax, corporate income tax, inheritance and transfer tax, investment incentives, the Istanbul Financial Center regime, and the entrepreneurship ecosystem have entered into force through "Law No. 7582 on Amendments to Certain Laws", published in the Official Gazette on June 4, 2026.

1. 20-Year Income Tax Exemption for Foreign-Source Income

With the introduction of Article 20/D to the Income Tax Law, a 20-year income tax exemption has been granted for certain income and earnings derived abroad by eligible individuals who become tax residents of Türkiye.

To benefit from this exemption, the individual must not have maintained a domicile in Türkiye or been subject to full tax liability in Türkiye during the three calendar years preceding their relocation to Türkiye.

2. Qualified Service Centers Introduced into the Legislative Framework

The amendments to the Foreign Direct Investment Law introduce the concept of a "Qualified Service Center" and define the scope of activities that may be carried out by such centers.

The new framework aims to promote the provision of services from Türkiye on an international scale, including finance, strategy, accounting, auditing, human resources, technology consulting, data analytics, sales support, and R&D coordination services.

3. Income Tax Incentives for Qualified Service Personnel

A portion of the salaries paid to employees working in qualified service centers has been exempted from income tax.

Under the general regime, the exemption applies to the portion of the salary not exceeding three times the gross minimum wage. For qualified service centers operating in certain industrial zones and within the Istanbul Financial Center, this threshold may be increased to five times the gross minimum wage.

4. Expansion of Corporate Income Tax Incentives

Under the new regulation, enhanced corporate income tax incentives have been introduced for:

• Profits derived from the trading of goods conducted abroad,
• Income generated from intermediary services provided in respect of overseas transactions, and
• Foreign-source income earned by qualified service centers.

For entities operating within the Istanbul Financial Center and for companies located in certain industrial zones that meet the prescribed conditions, the deduction rate may reach 100%.

5. Corporate Income Tax Rate Reduced to 12.5% for Manufacturing Income

The corporate income tax rate applicable to income derived from manufacturing activities will be reduced to 12.5% for companies holding an industrial registration certificate and actively engaged in manufacturing, as well as for corporations engaged in agricultural production with respect to income generated from such activities.

This provision will apply to income earned during the 2027 fiscal year and subsequent taxation periods.

6. Introduction of a New Asset Repatriation Program

A new temporary provision has been introduced, allowing taxpayers to declare:

• Cash, gold, foreign currency, and capital market instruments held abroad; and
• Domestic assets that are not recorded in the statutory books and records of businesses, until July 31, 2027.

To benefit from the program, the declared assets must be transferred to Türkiye or deposited into accounts held with banks or intermediary institutions within the prescribed time limits.

7. New Support Measures for Technology Start-Ups and Digital Entrepreneurs

• Investment and fundraising processes for companies holding a Tech Entrepreneurship Badge (Teknogirişim Rozeti) have been streamlined and facilitated.
• Certain digital companies established by entrepreneurs admitted to incubation programs will be exempt from membership fees and dues payable to chambers of commerce and industry for a period of up to three years.

8. Extension of the Incentives for the Istanbul Financial Center

With the amendments made to the Istanbul Financial Center Law, the scope of existing tax advantages has been expanded and the application periods of certain incentives have been extended.

While some provisions of the law entered into force on the date of its publication, different effective dates have been set for certain regulations regarding income tax and corporate tax. In particular, provisions related to the foreign income exemption will apply to individuals deemed to have become resident in Türkiye as of January 1, 2026, while certain corporate tax regulations will apply for taxation periods in 2026 and subsequent years.

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

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