Certain businesses in metropolitan areas must use the real tax method from 2026.
The Turkish government issued Presidential Decision No. 10380, published in the Official Gazette on 9 September 2025, introducing changes to business taxation under the Individual Income Tax Law.
The decision limits the use of the simple method (basit usül) for calculating business taxes. Under the new rules, businesses in metropolitan municipalities, including manufacturers, traders, construction companies, restaurants, entertainment venues, motor vehicle repair shops, and urban transport operators, must calculate taxes using the real method instead of the simplified regime. Businesses in districts with fewer than 30,000 residents are exempt.
The simple method allows eligible taxpayers to calculate income by deducting expenses from revenue without maintaining detailed accounts, provided certain conditions on rental expenses, turnover, and business participation are met.
These changes will take effect on 1 January 2026.
