Global Daily Tax News, Turkey Guides On Tax Discount For Compliant Taxpayers, (Feb 7, 2025)

Turkey has issued guidance clarifying the conditions that must be met for taxpayers to benefit from the five percent deduction for compliant taxpayers.

The guidance explains which taxpayers are excluded from the scope of the measure, conditions that must be met, limits on the amount of deduction that can be secured, and recovery of the benefit where non-compliance is later detected.

The incentive is included in Article 121 of the Income Tax Law, for income taxpayers engaged in commercial, agricultural or professional activities, and corporate taxpayers, except those engaged in the finance and banking sectors or insurance and reinsurance industry, retirement companies, and retirement investment funds.

To benefit from the measure, among other things, the taxpayer must have submitted all required tax returns for the current year and the previous two years and settled the tax due.

With effect for returns filed from January 1, 2025, the maximum deduction amount is TRY9.9m (USD275,800).