General Communiqué No. 26 sets out detailed rules on the reduced corporate income tax regime for manufacturers and agricultural producers, while confirming transitional measures and practical guidance introduced under recent legislative amendments.
Turkey’s Tax Administration has issued General Communiqué No. 26, providing final guidance on the corporate income tax amendments introduced by Law No. 7577 and Law No. 7582. The Communiqué, which entered into force on 4 July 2026, confirms the reduced corporate income tax regime for qualifying manufacturers and agricultural producers and includes practical explanations on how the incentives should be applied.
From the 2027 taxation period, corporations holding an industrial registry certificate and actively engaged in manufacturing will benefit from a 12.5% reduction in the corporate income tax rate on income derived from production activities. The guidance also confirms a transitional rule under which eligible manufacturers will continue to apply the existing 1-point rate reduction for the 2026 taxation period. Where a company earns income from both production and other activities, only the portion attributable to manufacturing qualifies for the reduced rate, using a proportional calculation.
Exporting manufacturers
The Communiqué explains that manufacturers exporting their own products may benefit from both the production and export incentives, provided each is calculated separately. A 5-point reduction applies to income derived from exports, while the 12.5% reduction applies to qualifying manufacturing income. The guidance includes examples illustrating how the reductions should be applied to prevent double counting.
Toll manufacturing
Manufacturers using toll manufacturing may still qualify for the reduced corporate income tax rate if they retain responsibility for the production process. To be eligible, the producer must hold an industrial registry certificate or production licence, provide the raw materials, assume the commercial and organisational risks, and conduct quality control. Companies engaged only in the commercial sale of goods manufactured entirely by third parties are not eligible for the production incentive.
Free Zone producers
The guidance reiterates the corporate income tax exemption for products manufactured in Free Zones and sold to foreign countries, other Free Zones or customers within the same Free Zone. However, the exemption does not apply to products sold into Turkey’s domestic market. The final Communiqué also makes technical amendments to the Free Zone provisions while maintaining the underlying exemption framework.
Publicly traded producers
Companies that list at least 20% of their shares on Borsa Istanbul for the first time remain eligible for a 2-point corporate income tax reduction for five accounting periods. The Communiqué confirms that this incentive is applied before the production or export rate reductions when calculating the final tax liability.
Agricultural producers
Agricultural producers holding the required farmer registry, greenhouse registry or Ministry of Agriculture and Forestry business approval certificates are also covered by the reduced tax regime. From the 2027 taxation period, qualifying income from agricultural production will receive the same 12.5% reduction available to industrial manufacturers.
