On 15 July 2023, the Turkish Revenue Administration published Law No. 7456 in the Official Gazette. Accordingly, the general corporate income tax rate has been raised from 20% to 25%.
The corporate income tax rate for companies operating in the financial sector, including banks, financial leasing companies, electronic payment and money institutions, asset management companies, capital market institutions, insurance companies, and private pension companies, has been raised from 25% to 30%.
The revised corporate income tax rates will be effective for the profits reported in tax returns due from 1 October 2023, applying to the tax year 2023 and all subsequent tax periods. For companies with special tax periods that do not align with the calendar year, the new rates will be applicable to the profits of their special tax period commencing in the calendar year 2023 and onwards.
Furthermore, companies engaged in export activities will be benefited from a reduction of 5 percent points in their corporate tax rate, instead of the previous 1 percent reduction.
