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2025/32 Financial/Tax Bulletin (May 2025)

Find out the latest developments in tax regulations and be updated on regulatory changes along with their effects on your business through our tax bulletins. In this bulletin, we have compiled for you the current important financial developments, recent legislative changes, critical tax issues that may directly concern your sector, and details that will shed light on the upcoming period.

Major Tax Issues

POS and Electronic Invoice System changes for taxis in Türkiye

• The transition process to the use of the new generation payment recording device (NGC) for commercial taxis that are required to have taxi meters is about to begin.
• The draft circular has been published. It is highly socio-political issue in Türkiye that we will follow up the Draft close.

Benefits of the Holding Company Structure in Türkiye.

• A holding company is an umbrella entity that aims to distribute the profits obtained from the subsidiaries it participates in, thereby managing the distribution activities across all involved entities.
• You can read the details by clicking the bulletin. 

New double tax treaties on the agenda of the Parliament.

• You can access all of Turkey’s signed and entered into force agreements from the table on the Revenue Administration’s website.
• Of these, Venezuela and Chad entered into force in 2022 in terms of taxes; Sri Lanka and Cambodia in 2024; and Sierra Leone and Chad in 2025.
• In addition, Congo, Nigeria and Senegal agreements that have been enacted will enter into force after the completion of internal procedures and will take their place on the list.
• The agreements with Palestine, Cuba and Burundi and the new Azerbaijan Agreement are also waiting to be included on the agenda of the Parliament’s plenary session with committee reports.
• Tax Treaty with Angola is on the way, 3rd meeting is held in Ankara.

A new audit system has begun for big companies and people who have not declared any tax recently.

A new Double Taxation Agreement with Korea has entered into force.

Electronic applications are increasing in tax audits

• A change and arrangement have been made in the Tax Audit Regulation, and an innovation has been introduced that allows the audit and recording processes to be carried out via audio or video over the system, the infrastructure of which was previously established.

 Social Security

Turkish Dutch Social Security Regulation

• Some updates have been made to the circular (numbered 2020/26) regarding the social security agreement signed between Turkey and the Netherlands. (Circular numbered 2025/10 dated 10 March 2025)

Implementation of the Social Security Agreement signed between Turkey and Romania

• The effective date of the Administrative Agreement regarding the implementation of the Agreement signed between the two countries has been determined as 1 February 2025.
• You can access the agreements to which our country is a party and the details on the subject by visiting Taxia Guide.

The Omnibus Law, which also includes holiday bonuses for retirees, has been published.

Changes have been made to the SGK Nace codes.

Banking & Finance

TCMB increased the foreign exchange position reporting limits.

Regulations were made in the Export Regulation regarding consignment export and e-commerce transactions.

The amount that can be taken abroad has been increased.

• According to the change made by the circular, it has been increased from 25 thousand TL to 185 thousand TL. In cases exceeding this amount, information must be provided with a "cash declaration form".

R&D and Incentives

New Investment Incentive Regime is published.

• With a new Decree, the updated system will be applicable till 2030. It has different schemes such as technology, strategic and local development. Prioritized and target investment models are kept while local incentives will be applied for the least developed cities and regions.

The application period for VAT exemption for some construction works with incentive certificates has been extended for another 3 years.

Fund allocation requirement for R&D incentives is still ongoing.

• It will be calculated on the tax exemption of R&D and Technopark firms.
• This requirement will be 3% this year.
• You can read an article written by Taxia Partner Şaban Küçük regarding with the “collective investment vehicles” in Türkiye.

Commercial Regulations

Deadline for Car Tracking System is extended.

• Within the scope of the National Vehicle Identification System (UTTS), the period for the hardware and registration processes that have become mandatory for the automatic transfer of license plates to the payment recording device in fuel sales has been extended.

Climate Law in Parliament

• Draft Law is sent back to the Committee from the General Assembly.
• The new proposal aims to reduce greenhouse gas emissions in the context of combating climate change, and to regulate the legal and institutional framework of climate change adaptation activities, planning and implementation tools, revenues to be used in combating climate change, and the principles of permitting and inspection.
• The Law is accepted in the Commission with minor revisions and amendments.
• You can see more regarding with the recent updates on green and climate in Türkiye by clicking the official web site of the Directorate of the Climate Change.

Customs & Foreign Trade

Permitted amount increased travelling abroad

• The amount of Turkish Lira that is subject to declaration when traveling abroad has been increased from 25,000 TL to 185,000 TL. In the event of a passenger traveling with Turkish Lira exceeding 185,000 TL and a document that enables payment in Turkish Lira, it is required to declare the Turkish Lira with a 'cash declaration form' to the customs administrations.

The compulsory sales rate for export foreign exchange has increased from 25% to 35%.

Latest Status on 3% Currency Conversion Support

• The mandatory rate of 25% for the sale of export proceeds to banks was determined as 35% from 05.05.2025 to 31.07.2025. Besides, the 2% foreign exchange conversion support rate provided within the scope of the application to support the conversion of export proceeds of companies into TL increased to 3% until 31.07.2025.

Changes in customs duty rates.

• The customs duty rates for some agricultural products for TPS-OIC countries (Bahrain, Bangladesh, United Arab Emirates, Morocco, Iran, Qatar, Kuwait, Malaysia, Pakistan, Saudi Arabia, Oman, Jordan) were reduced to rates ranging from 0% to 25%.
• The customs duty rate for Least Developed Countries (LDCs) on imports of unroasted coffee of heading ‘0901’ has been changed to 0%.
• The customs duty rates for certain fisheries and aquaculture products for TPS-OIC countries have been reduced to rates ranging from 0% to 25%, and the Additional Fiscal Obligation (EFO) rate has been changed to 0%.
• To protect the domestic industry and production, limit dumped and low-priced imports and balance the current deficit, additional tax rates for the import of goods such as textile products, ready-made clothing, plastic goods and some metal products have been redetermined at rates ranging from 2% to 30%.
• A total of 1,000,000 tons of tariff quota was opened for corn product with GTIP 1005.90.00.00.19. For imports to be made within the scope of this quota, customs duty will be applied as 0%.

Consignment Export Notification

• Regarding Consignment Export, the final sales notification period to be made by exporters to the Exporters' Associations for goods sent on consignment has been increased from 30 days to 120 days, and exporters are also required to notify the intermediary bank.

Miscellaneous

Updated Independent Audit Criteria

• With the new decision, companies that exceed the threshold values of at least two of the following three criteria in two consecutive accounting periods will be subject to independent audit:
• Total assets 300 million Turkish lira. (150 million and above Turkish lira in the previous decision)
• Annual net sales revenue 600 million TL. (300 million and above TL in the previous decision)
• Number of employees 150 people. (No change has been made to this criterion.)

Cyber Security Law has entered into force.

• There are important regulations in Law No. 7545 published on March 19.
• Cyber Security Presidency may authorize independent auditors and independent auditing organizations that conduct cybersecurity audits and may cancel their authorization temporarily or indefinitely.
• Companies that do not comply with certain rules stipulated in the law are subject to administrative fines of up to 5 percent of the gross sales revenue in their independently audited annual financial statements, not less than the specified amount.

Savings Finance Companies have been included in the scope of KAYİK.

The Procedures and Principles Regarding Sustainability Reporting have been published as a Draft.

Sustainability reports and agreements must be reported to the KGK within the specified periods.

Don't forget VERBIS registration within the framework of GDPR legislation.

• According to the law, companies with more than 50 employees and a balance sheet size of more than 100 million TL must register with VERBIS.

Best regards,

Taxademy