Turkey clarifies corporate tax reductions for certified investments in new Communiqué No. 24.
The Ministry of Treasury and Finance issued General Communiqué No. 24 on 4 September 2025, amending the General Communiqué on Corporate Tax (No. 1).
The Communiqué clarifies the implementation of changes introduced by Law No. 7555 of 20 July 2025 to Article 32/A of the Corporate Income Tax Law (Law No. 5520).
The Communiqué confirms that the reduced corporate income tax rate applies at a 60% discount to earnings from certified investments, starting from the fiscal year in which the investment is partially or fully operational. The reduction may be applied for a maximum of ten years. It further specifies that applications submitted before 16 June 2025, provided they were not rejected, continue under the previous regime, while applications made on or after 24 July 2025 fall within the new framework of a ten-year limitation and 60% discount rate.
Taxpayers may also apply the reduced rate to earnings from other business activities, limited to four years and up to 50% of the total investment contribution amount, provided that sufficient qualifying expenditures are made. However, unused investment contribution amounts in a fiscal period cannot be carried forward to subsequent years if they are not utilized despite sufficient taxable income.
The Communiqué also provides clarification on the interaction between the earned contribution amount and the maximum authorized percentage, the treatment of expansion investments, transfers of investment projects, and the limits on the use of contributions via offset against other tax debts. General Communiqué No. 24 entered into force on the date of its publication in the Official Gazette.
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.
