On 14 May 2022, Turkey has published General Communiqué No. 20 in the Official Gazette, which clarifies about 1% corporate income tax (CIT) reduction for manufacturing and export activities. Turkey reduced the rate by Law No. 7351 on 22 January 2022. The General Communiqué provides details on the reduction. The main measures of the Communiqué are as follows:
- The corporations that engaged in the export activities, and the corporations that have an industrial registry certificate and perform manufacturing activities will be subject to this reduced rate;
- The reduced rate is applicable for the earning of the corporation as of 1 January 2022. For the taxpayers who uses special accounting period, they can be able to benefit from the beginning of the special accounting period starting in the 2022 calendar year as well;
- The reduced rate will not be applied if the CIT rate exemption is applied to the income of the corporate taxpayers from manufacturing and export activities.
