Turkey’s Tax Administration has released guidance on a 5% tax reduction for compliant taxpayers in 2026. The incentive covers business, agricultural, professional, and most corporate income earners, with a cap of TRY 12 million and eligibility conditions including timely filings, paid taxes, and no serious tax offences.
Turkey’s Tax Administration has issued guidance on a 5% tax reduction available to compliant taxpayers for the 2026 filing period. The incentive applies to individuals earning business, agricultural, or professional income, as well as most corporate income taxpayers, while entities in finance, banking, insurance, reinsurance, and pension sectors are excluded. Non-resident taxpayers may also qualify if they meet all statutory requirements.
To claim the reduction, taxpayers must have submitted all relevant individual or corporate income, VAT, and withholding tax returns on time for the current and previous two tax periods, with no additional or automatically assessed taxes exceeding 1% of the deduction limit. Taxes on these returns must be paid by the submission date of the 5% reduction calculation, and outstanding tax debts must not exceed TRY 1,000. Taxpayers must also have no offences under Article 359 of the Tax Procedure Law for the relevant year and the prior four years.
The maximum reduction is capped at TRY 12 million for 2026. Any excess amount over the tax payable can be offset against other taxes declared within one year; amounts not used within this period are non-refundable. The guide provides detailed calculation examples to help taxpayers determine eligible reductions.
