Turkey has initiated a public consultation on the scope and application of the reduced corporate income tax regime for investments made under an investment incentive certificate issued by the Ministry of Industry and Technology.
Turkey’s government has released draft Communiqué No. 24 on 20 August 2025, outlining the scope and application of the reduced corporate income tax regime for investments made under an investment incentive certificate issued by the Ministry of Industry and Technology. The draft is open for public consultation
The draft clarifies that certified investments can benefit from a 60% reduction in corporate income tax, starting from the fiscal year when the investment becomes partially or fully operational. This reduced rate can be applied for up to 10 years. Applications submitted before 16 June 2025 that were not rejected will follow the previous rules, while those submitted on or after 24 July 2025 will be subject to the new ten-year limit and 60% discount.
The draft also allows taxpayers to apply the reduced rate to profits from other business activities. This option, however, is limited to four years and capped at 50% of the total investment contribution amount, subject to meeting the required qualifying expenditures. Unused contribution amounts in a given fiscal year cannot be carried forward if they remain unused despite sufficient taxable income.
The President is granted authority to determine contribution ratios, exclude specific expenditures such as land, royalties, and non-depreciable assets and extend either the scope or duration of the reduced tax regime.
Earlier, 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.
