Global Daily Tax News, Turkey Progressing Major Tax Reform Bill, (May 14, 2026)

Tax reform legislation currently under consideration in Turkey would establish a new 12.5 percent concessionary rate of corporate income tax for companies engaged in industrial and agricultural production activities.

The concession will be available subject to the fulfilment of a number of conditions, including being registered with local authorities, and, if approved, would be available starting from next year.

Those producers availing themselves of the 12.5 percent corporate income tax rate would be precluded from also accessing the five percentage point corporate income tax reduction for profits from export sales.

The measure is included in a draft omnibus law, which has so far cleared parliamentary committee level. The legislation further provides for numerous other tax incentives, announced earlier by Turkey's Finance Minister, Mehmet Simsek, that are intended to position Turkey as a low-tax hub for finance and trade.

Many of the measures are targeted at the development of the Istanbul Finance Center (IFC), including a 20-year corporate tax exemption for new ventures, or a 95 percent tax waiver for foreign investments elsewhere in the nation. The Minister also announced an income tax-exempt allowance of USD3,000 for eligible IFC-based employees.

Corporate tax will be waived indefinitely on profits from transhipment activities, and a tax exemption will also be introduced for income from specified exported services, he said.

To encourage foreign talent and the return of Turkish citizens, a 20-year tax exemption will be introduced for foreign-sourced income and gains, and inheritance tax would be slashed to just one percent, to encourage repatriation and promote wealth planning business in the jurisdiction.

The law also includes a tax amnesty scheme for the repatriation of undeclared foreign assets by July 31, 2027, with the application of a tax charge of between zero and six percent. A 0.5 percentage point concession is provided for early declarations, before January 1, 2027, with the main rate of tax phasing down for taxpayers committing to hold assets in Turkey for multi-year periods.