New Developments in Corporate Income Tax Practice

The Corporate Income Tax General Communiqué (Serial No. 26), published in the Official Gazette No. 33300 dated July 4, 2026, sets out the procedures and principles governing the implementation of the amendments introduced to the Corporate Income Tax Law by Laws No. 7577 and 7582. The Communiqué also introduces significant amendments to the Corporate Income Tax General Communiqué (Serial No. 1).

Corporate Income Tax Exemption for Foundation University Hospitals to End

As of January 1, 2027, the corporate income tax exemption applicable to hospitals and similar healthcare institutions operating under foundation universities and providing healthcare services for consideration will be abolished.

Expansion of the Corporate Income Tax Exemption for Free Zones

The corporate income tax exemption applicable to manufacturers operating in free zones has been expanded to cover not only income derived from exports but also income generated from sales within the same free zone and to other free zones.

Tax Incentive for Merchanting Transactions and Offshore Intermediary Services

Subject to the fulfillment of certain conditions, 95% of the income derived from the sale of goods purchased abroad without being brought into Türkiye (merchanting transactions) or from intermediary services relating to offshore trading transactions will be deductible from the corporate income tax base. This deduction will increase to 100% for eligible taxpayers operating in the İstanbul Financial Center and designated industrial zones.

New Corporate Income Tax Deduction for Qualified Service Centers

The Communiqué sets out the implementation principles for the newly introduced corporate income tax deduction applicable to income derived from abroad by Qualified Service Centers.

12.5% Corporate Income Tax Rate for Manufacturing and Agricultural Production Activities

Effective from 2027, income derived from manufacturing activities carried out by enterprises holding an Industrial Registration Certificate, as well as income generated from agricultural production activities, will be subject to a 12.5% corporate income tax rate.

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