Legislative Proposal Envisioning Significant Changes to Tax Laws Has Been Submitted to the Turkish Grand National Assembly

The Draft Law submitted to the Grand National Assembly of Türkiye on 5 May 2026 sets forth the following legislative amendments:

• Extending the maximum instalment period from 36 months to 72 months and increasing the unsecured instalment limit from TRY 250.000 to TRY 1.000.000 in the postponement of public receivables under Article 48 of Law No. 6183, provided that the conditions set forth in the article are met,
• Applying a 1% Inheritance and Transfer Tax rate on inheritances occurring within the prescribed period where the exemption conditions set forth in the proposed “Duplicate Article 20/D” to be added to Income Tax Law No. 193 are met,
• For tech‑initiative companies that meet the criteria determined by the Ministry of Industry and Technology, increasing the tax exemption limit for shares granted free of charge or at a discount to employees to twice their annual gross salary, reducing the required holding period for full exemption on disposal of such shares to 6 years, and redefining the tax amounts to be collected depending on the holding period of the shares,
• With the proposed “Duplicate Article 20/D” to be added to Income Tax Law No. 193, exemption of the income and gains obtained abroad by individuals deemed resident in Türkiye, provided that in the last three calendar years before they became resident, they did not have a residency or tax liability in Türkiye from income tax for 20 years (It is planned for this provision to come into force on its publication date, applicable to those deemed residents of Türkiye as of 01.01.2026.)
• By adding “Provisional Article 1” to the Foreign Direct Investment Law, defining the concept of “Qualified Service Centre” and granting an income tax exemption on salaries of employees working in such centres for companies that meet the Qualified Service Centre criteria, as well as a corporate tax reduction under the Corporate Tax Law for income derived from abroad by entities operating as qualified service centres,
• Application of a 95% exemption rate (100% for entities operating in the Istanbul Finance Centre) on profits derived from the sale of goods purchased from abroad and sold to another country without being brought into Türkiye (without nationalisation) under transit trade, or from brokerage in offshore purchases and sales of goods, and additionally enabling such exempt income to be deducted in the calculation of the domestic minimum corporate tax (It is planned for this provision to come into force on its publication date, applicable to corporate earnings for the taxation period starting as of 01.01.2026 and declarations to be submitted from 01.07.2026.),
• Reducing the corporate income tax rate to 9% on income derived by manufacturing corporations from the export of goods they manufacture and to 14% on income derived exclusively from export activities by exporting corporations, (It is planned for this provision to come into force on its publication date, applicable to profits earned in 2027 and subsequent taxation periods.),
• Ensuring the declaration and recording of securities or cash assets that are off‑the‑books (regardless of whether they are located in Türkiye or abroad) by allowing their notification to and transfer through banks or brokerage institutions until 31.07.2027, and subjecting them to taxation at rates between 0% and 5% (depending on the period of holding in Government Debt Securities or Lease Certificates),
• Introducing regulations to allow the deduction of profit reductions relating to transit trade, qualified service centres and exports of financial services from the minimum corporate tax base,
• Introducing a new asset amnesty regime, allowing money, gold, foreign currency, securities and other capital market instruments located abroad or in Türkiye but not recorded in the books to be brought into Türkiye, with taxation at rates between 0% and 5% depending on the period for which the declared assets are held in time‑deposit accounts or in domestic government debt securities and lease certificates,
• Stipulating that, for non‑public companies bearing the “Techno-Initiative (Teknogirişim)” badge granted by the Ministry of Industry and Technology, the provisions of the Turkish Commercial Code regarding conditional capital increases shall not apply to conditional capital increases based on convertible loan agreements,
• Extending the income tax reduction currently provided to financial institutions in the Istanbul Finance Centre for employees with international experience so that it covers all participants,
• Extension of the 100% corporate tax reduction on income derived from exports of financial services by institutions located in the Istanbul Finance Centre until 2047 and extension of exemption period from financial activity fees (charges) for participating financial institutions for 20 years.”