Corporate tax reduction for exporters and manufacturers

Tax bulletin - 2022/02

In brief

Law number 7351, passed on 19 January 2022, allows for a corporate tax rate reduction of 1% on income generated from manufacturing and exportation.

In detail

In Turkey, the standard corporate income tax rate is 20% (Article 32/1 of the Corporate Income Tax Law). A temporary article increased the rate to 25% for 2021 and to 23% for 2022 (Temporary Article 13 of the Corporate Income Tax Law). Starting from 2023, the rate is to return to 20%.

Law number 7351, passed on 19 January 2022, amends Article 32 of the Corporate Tax Law and offers a corporate tax rate reduction of 1% for: 

  • income earned by exporters from exportation
  • income earned from manufacturing activities by manufacturers with industry registration certificates.

The law was published in the Official Gazette on 22 January 2022 and entered into force on the same date. It is effective for years 2022 and onward.  This means that while the tax rate for other companies is 23% in 2022, for qualifying manufacturers and exporters it is 22% for the portion of their income resulting from exporting and manufacturing activities.

Manufacturers who also engage in exportation shall benefit from the reduction only for manufacturing, they may not claim a second reduction for exportation. 


Contact us

Ebru Türkçelik

Ebru Türkçelik

Tax Services, Director, PwC Turkey

Tel: +90 212 326 6454

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