Global Daily Tax News, Turkey Legislates For Digital Services Tax Rate Cuts, (Dec 31, 2025)

The Turkish Government has issued Presidential Decision no. 10,767, dated December 24, 2025, providing for the phased reduction of the nation's digital services tax rate.

Turkey introduced its digital services tax on March 1, 2020. Included in Law No. 7194, the DST applies at a rate of 7.5 percent to revenues from the supply of certain digital services to consumers in Turkey. The tax applies to companies with global revenues of at least EUR750m (USD827m) and domestic source revenues of at least TRY20m (USD3.2m) from taxable services.

The new Presidential Decision reduces the rate to five percent with effect from January 1, 2026, and provides that the rate will be halved to 2.5 percent from January 1, 2027.

The Decision was published in the December 25, 2025, edition of the Official Gazette.