Turkey's parliament has approved a sweeping tax and investment package introducing corporate tax cuts for manufacturers and exporters, a new income tax exemption regime for returning residents, extended incentives for Istanbul Financial Centre operators, and measures to ease the collection of public receivables — signalling a broad push to attract foreign capital and strengthen domestic investment.
Turkey’s Grand National Assembly (TBMM) on 21 May approved Law No. 7582, a broad legislative package containing tax and investment measures, which was first announced by the Turkish President in April 2026.
The law introduces amendments to several tax laws, including the Corporate Tax Law, Income Tax Law, Inheritance and Transfer Tax Law, and the Law on the Procedure for the Collection of Public Receivables.
The key measures are:
Corporate tax incentives for transit trade and export-oriented activities
Law No. 7582 also expands corporate tax incentives for transit trade and export-oriented service activities. Profits derived from the overseas sale of goods purchased abroad without entering Türkiye, or from intermediary foreign trade activities conducted abroad, will generally qualify for a 95% corporate tax deduction. The deduction rises to 100% for qualifying entities operating in approved industrial zones or in the IFC.
The same deduction structure will apply to profits generated by qualified service centres from foreign-source activities. The incentives will apply for 20 accounting periods, provided profits are transferred to Turkey within the statutory filing period for annual corporate tax returns.
Reduced corporate tax rate for manufacturing and agricultural production
The law sets a 12.5% corporate tax rate for profits derived exclusively from production activities carried out by corporations holding industrial registration certificates and for profits from agricultural production activities. The reduced rate will apply from the 2027 tax period onward.
Income tax exemption for foreign-source income and earnings
The legislation also introduces a new “tax exemption for foreign-source income and earnings” regime. Individuals becoming residents in Turkey after living abroad may benefit from an income tax exemption on foreign-source income and earnings for 20 years, provided certain residency conditions are met.
Tax incentives for qualified service centre personnel
A separate amendment creates income tax exemptions for qualified service personnel employed in “qualified service centres” operating under the Foreign Direct Investments Law. Wage exemptions will apply up to three times the gross minimum wage, rising to five times for eligible entities operating in approved industrial zones or within the Istanbul Financial Centre (IFC).
Extended incentives under the Istanbul Financial Centre Law
Further amendments extend incentives under the Istanbul Financial Centre Law. The duration of the 100% corporate tax deduction for organisations conducting financial activities in the IFC has been extended until 2047, while exemptions from financial activity fees related to establishment and licensing have been prolonged from five years to 20 years.
Deferred collection of public receivables
Under the new rules, public receivables may be deferred for up to 72 months if immediate collection would place debtors in severe financial difficulty. Debtors with deferred liabilities of up to TRY 1 million will not be required to provide collateral, while collateral requirements for larger amounts will be reduced.
Definition of a qualified service centre
The law defines “qualified service centre” as a capital company providing specified services to related companies operating in at least three countries and earning at least 80% of annual revenue from abroad. Covered activities include financial consultancy, risk management, auditing, legal consultancy, digital transformation, brand management and human resources services.
Asset repatriation and voluntary tax compliance measures
The package also contains asset repatriation measures aimed at encouraging voluntary tax compliance. Cash, gold, foreign currency, securities and other capital market instruments held abroad may be declared to banks or intermediary institutions by 31 July 2027. Qualifying declarations will be protected from tax inspection and tax assessment if statutory conditions are met.
Support measures for technopreneurship companies
The legislation additionally introduces measures supporting technopreneurship companies, including revised income tax exemptions for employee share schemes and exemptions from certain fees and membership dues for eligible digital companies.
