In Brief
On 5 May 2026, a draft law proposing amendments to various Turkish tax laws was submitted to Parliament. The proposal introduces a broad range of measures, including:
- Introduction of a new wealth amnesty program
- Reduced corporate tax rate for exporters and manufacturing exporters
- Incentives for qualified service centers and the Istanbul Financial Center (IFC)
- Expansion of tax deductions related to service exporters and transit trade
- Other tax and administrative matters
As the draft has not yet been enacted, the final scope and application of these measures remain subject to change.
In detail
1. Wealth Amnesty Program
The draft introduces a new wealth amnesty regime broadly aligned with previous programs, enabling taxpayers (individuals and corporates) to regularise previously undisclosed assets held in Türkiye or abroad.
Scope
The regime covers cash, gold, foreign currency, securities and other capital instruments, without a requirement to demonstrate the historical existence of such assets at a specific date.
Declaration and timing
Assets must be declared to Turkish banks or brokerage institutions by 31 July 2027, and foreign assets must be transferred to Türkiye within three months following declaration.
Applicable tax rates
A base tax of 5% applies, with reduced rates depending on how long the declared assets are held in certain instruments like time deposit accounts, government domestic debt securities, lease certificates.
• 0% if assets are held for at least 5 years
• 1% for at least 4 years
• 2% for at least 3 years
• 3% for at least 2 years
• 4% for at least 1 year
Higher rates would apply to declarations made in later periods (from 2027 onwards).
Other benefits and remarks
No tax inspection will be started or no tax penalty will be imposed on the amounts declared under the amnesty program. In case of tax inspections that started due to other reasons, if the tax base difference identified are attributable to the declared assets, no assessment would be made if the declared amount covers the difference. Otherwise, tax would apply only on the excess portion.
Conditions
The benefits would be denied if:
- Assets are not transferred into Türkiye within the required timeframe
- Taxes are not paid on time
- Holding commitments are not met
2. Reduced Corporate Tax Rate for Exporters
Under the current regime:
- A five-point corporate income tax rate deduction applies to export income
- An additional one-point corporate income tax rate deduction applies to income from manufacturing activities
The Draft Law proposes to change this application as follows:
- Manufacturing exporters would be subject to corporate tax rate of 9% on their profits from goods manufactured and exported directly
- Exporters would be subject to corporate tax rate of 14% on their profits from export activity
These rates are expected to apply starting from the 2027 tax period, subject to enactment.
3. Qualified Service Center
A new regime of “qualified service center” is introduced. Under this regime:
- 95% of the income generated from abroad may be deductible from the corporate tax base for a period of 20 years
- 100% deduction applies if the entity is located in the IFC
Employee salary exemptions are available up to:
- 3x minimum wage (general regime)
- 5x minimum wage (IFC regime)
To qualify, companies must:
- Operate in at least three countries
- Provide services to group companies
- Generate at least 80% of revenue from abroad
4. Expansion of Service Export and Transit Trade Incentives
Under the current regime, companies operating in Istanbul Finance Center (IFC) are allowed 50% deduction on their income from transit trade and offshore trade, subject to conditions. The draft law extends existing incentives as follows:
- Deduction for offshore/transit trade income in the IFC increases from 50% to 100%
- A 95% deduction is introduced for non-IFC entities engaged in offshore trade
5. Interaction with Minimum Corporate Tax
Income benefiting from certain incentive regimes (e.g. transit trade, qualified service centers, IFC incentive) may be excluded from the domestic minimum corporate tax base calculation.
6. Istanbul Finance Center (IFC)- Additional Measures
The draft proposes enhancements to the IFC regime:
- Increase of the financial services export deduction from 75% to 100% (until end of 2031)
- Extension of the exemption from financial activity fees up to 20 years
7. Special Tax Regime for Individuals Relocating to Türkiye
A new regime aims to attract individuals relocating to Türkiye:
- Foreign-source income and gains may be exempt from tax up for 20 years
- Inheritance and gift tax reduced to 1% for qualifying individuals.
