The Turkish Government published a new Law No. 7601 on 5 December 2017, in the Official Gazette. This Law amends different tax laws for increasing tax revenues, stipulating procedural rules and eliminating some tax or fee applications.

According to this Law, the corporate tax rate will be increased from 20% to 22% for the tax periods 2018 to 2020. This change was come into force from December 5, 2017.

Also, there will be a change in tax exemption regarding sale of immovable property. Long term capital gains of a company are taxed as ordinary income, with an exemption of 75% of capital gains from the sale of shares in subsidiaries. This rate will be reduced from 75% to 50% for immovable properties only, which were held for at least two years. This will be applied from January 1, 2018.

Capital gains derived from the sale of foreign participations that have been held for at least two years by an international holding company resident in Turkey are exempt from corporate income tax.

The current 75% exemption rate applied to the capital gains derived by corporate taxpayers from the sale of shares and immovable property held for at least two years is reduced to 50% for immovable property only. Going forward, the exemption rate will apply as 50% on the sale of immovable property acquired and held for at least two years. This article enters into force on 1 January 2018.

Some special communication excise tax rate will also be applicable. For mobile electronic communications, the tax will be 25%. A 15% rate will for radio and television broadcasting services via cable or satellite platform, 5% for wired, wireless or mobile internet service providers, and 15% for other electronic communication services.