Turkey’s Law No. 7555 limits corporate income tax incentives to 10 years and caps R&D income tax exemptions starting July 2025.
Turkey enacted Law No. 7555 introducing new limits on corporate tax incentives and income tax exemptions. The law was published in the Official Gazette on 24 July 2025.
The law caps the duration of the corporate income tax rate reduction under investment incentive certificates at 10 years from the first year of application. The reduced rate represents a 60% discount, applying only to certificates granted on or after 24 July 2025, with exceptions for certain earlier applications.
The law also sets a ceiling on the income eligible for income tax exemption for employees working in R&D centers, technology development zones, and research laboratories. From August 2025, the exemption applies only up to 40 times the gross monthly minimum wage, currently TRY 26,005.50, making the maximum exempt income TRY 1,040,220. Income above this threshold will be taxed normally.
These measures are part of broader tax provisions within the omnibus Law No. 7555, aiming to regulate tax benefits more precisely and ensure clear limits on incentives related to corporate investments and R&D activities.
