2026/48 Financial/Tax Bulletin (May & June 2026)
We are pleased to share the latest developments in Turkish tax, legal and regulatory matters and provide an overview of recent changes that may affect businesses operating in or investing in Türkiye. Türkiye has witnessed numerous tax, financial and regulatory developments in recent months.
Türkiye continued to reshape its tax, investment and regulatory framework during May and June 2026 through a series of reforms aimed at strengthening its position as a regional manufacturing, services and financial hub.
This edition covers:
- Türkiye's participation in the Global Minimum Tax (Pillar Two) information exchange framework and the increasing focus on international tax transparency;
- Long-awaited guidance on domestic minimum corporate tax, technopark incentives, REIT taxation and corporate tax exemptions;
- Several new tax incentives are now linked to certification and compliance requirements, reflecting Türkiye's increasing focus on transparency and tax governance;
- Major reforms introduced through the new Omnibus Law, including incentives for Qualified Service Centers, regional management hubs, transit trade activities and technology companies;
- New opportunities under the Asset Peace (Wealth Amnesty) regime and foreign income exemption framework;
- Reduced corporate tax rates for manufacturing companies and enhanced incentives for innovation and stock option plans;
- Constitutional Court decisions affecting customs penalties and legal certainty;
- New data protection guidance impacting on workplace surveillance and biometric attendance systems;
- Key developments in R&D incentives, foreign trade, financial regulation and sustainability.
Taken together, these developments indicate a broader policy direction: Türkiye is increasingly combining tax incentives, international tax transparency, investment promotion and regulatory modernization to attract capital, technology and regional business functions.
Top 5 Tax Developments in Türkiye – May & June 2026
- Qualified Service Center Regime Introduced
- Global Minimum Tax Information Exchange Framework
- Corporate Tax Communiqué No. 25 Released
- New Foreign Income Exemption Regime
- Constitutional Court Decision on Customs Penalties
Major Tax Issues
Türkiye joins the Global Minimum Tax Information Exchange Framework
- Türkiye has approved the multilateral competent authority agreement for the exchange of Global Minimum Tax (Pillar Two) information. The move strengthens international tax transparency by enabling the automatic exchange of GloBE-related information among participating tax authorities.
- Accordingly, where the GIR is filed in a jurisdiction that is a party to the agreement, Constituent Entities in Türkiye will not be required to file the GIR locally and will only submit the relevant notification form.
- As a Qualifying Competent Authority Agreement under the GloBE Rules, the MCAA establishes the framework for the automatic exchange of GloBE Information Return (GIR) data between implementing and QDMTT-only jurisdictions. For in-scope multinational groups this is a meaningful development: where the GIR is centrally filed in another jurisdiction under a qualifying agreement and duly notified, the obligation to file the information return locally in Türkiye may no longer apply, replacing parallel local filing with exchange of information.
Revenue Administration published guidance on the Global Minimum Top-up Corporate Tax.
- The Turkish Revenue Administration (GİB) has issued explanatory guidance and a return-preparation guide on the Global Minimum Top-up Corporate Tax (Küresel ATV), supplementing the Local and Global Minimum Top-up Tax Application General Communiqué. The guidance confirms the EUR 750 million consolidated-revenue scope threshold (met in at least two of the four preceding fiscal years), requires in-scope taxpayers to register under the dedicated ‘0064 – Global Minimum Top-up Corporate Tax’ liability code at their tax office, and clarifies the IIR and UTPR taxpayer definitions together with the content of the Global Minimum Top-up Tax Return, its annexed Information Return, and the related notification forms. The return has also been opened in the e-Beyan test environment, and a dedicated query channel (GloBE@gelirler.gov.tr) has been made available to taxpayers and advisers.
- The Turkish Revenue Administration clarified that entities in Türkiye acting as the Ultimate Parent Entity, Intermediate Parent Entity, or Partially Owned Parent Entity within an MNE group must register under tax code 0064 and file the Global Minimum Top-up Tax Return (IIR Return). Other Turkish constituent entities are only required to submit the Notification Form, while the Global Minimum Tax Information Return may be filed by a single group entity in Türkiye or abroad through the GIR-MCAA framework.
Turkish Revenue Administration clarifies key corporate tax rules for 2025 and beyond
- Long-awaited guidance has been issued on several corporate tax measures introduced over the past year, including domestic minimum corporate tax, technology development zone incentives, real estate investment structures and capital contribution deductions.
- Domestic Minimum Corporate Tax
- The guidance provides practical examples and clarifications regarding the application of Türkiye's new domestic minimum corporate tax regime, including the interaction with investment incentives.
- The exemptions listed in the corporate tax circular are classified based on activities and transactions.
- A new section, titled "5.18. Evaluation of Profits and Losses in Exemption Applications," has been added to the Corporate Tax Circular. In cases where an exemption is specific to a particular activity, the activity must be evaluated as a whole, and the profit determined within this overall framework. In transaction-based exemptions, the profit and exemption are determined on a per-transaction basis.
- Activity-based exemptions relate to profits arising from the combined evaluation of all activities within the same exemption scope during an accounting period. The exemptions falling under this category are listed in the Circular.
- Transaction-based exemptions relate to profits arising separately from each transaction within the accounting period. The exemptions falling under this category are listed in the Circular.
- New explanations have been introduced on the scope of tax-exempt income generated in technoparks and technology development zones, affecting software, R&D and technology companies.
- Real Estate Investment Funds and REITs
- The Communiqué clarifies dividend distribution requirements linked to certain tax exemptions available to real estate investment funds and real estate investment trusts.
- The tax-free period for REIT/REIF came to an end in July 2024, the requirement to distribute 50% of the profit is a must and withholding tax to be collected in this way.
- Cash Capital Contribution Incentive
- Additional guidance has been provided on the calculation and application of the interest deduction mechanism available for qualifying cash capital increases. It will be calculated for the fourth provisional tax period as well.
- Companies preparing their 2025 corporate income tax returns should reassess the impact of these clarifications, particularly where tax incentives, minimum tax rules or technology-related exemptions are involved.
Türkiye raises the threshold for security-free tax debt deferrals
- The threshold for deferring public receivables without providing collateral has been increased to TRY 10 million. The measure is expected to ease cash-flow management and reduce financing costs for businesses seeking installment arrangements with the tax administration.
New public debt deferral framework introduced in Türkiye.
- A new regulation published on 16 June 2026 significantly improves the conditions for the deferral and installment payment of public debts.
- The annual deferral interest rate applicable to tax and other public debts has been reduced from 39% to 29%. This represents a substantial decrease in financing costs for taxpayers.
- Installment period extended up to 72 Months. Standard repayment period: up to 36 months.
- Taxpayers facing financial hardship may obtain up to 48 months. Severe hardship cases may qualify for up to 72 months.
- The threshold for obtaining a deferral without providing collateral has been increased from TRY 1 million to TRY 10 million.
- This is expected to benefit many businesses, particularly SMEs.
- Given current market financing conditions, a 29% annual deferral rate may provide a significantly cheaper funding alternative compared to commercial borrowing costs.
- While this is not a tax amnesty, it is one of the most business-friendly debt restructuring measures introduced in recent years, offering companies greater flexibility in managing tax-related cash flow pressures.
Another new tax regulation has been submitted to Parliament.
- It is a more specific regulation affecting a smaller number of people. A significant step is being taken in terms of taxation regarding the taxi problem, which has remained unresolved in our country for a long time.
- A clause is being added to exempt young people and children from entertainment tax. A mechanism is being established between the Ministry of Finance and the Energy Market Regulatory Authority (EPDK) to prevent gas stations operated by companies involved in certain financial crimes or undergoing tax investigations from being operated by others.
- Since it's an omnibus bill, there are many regulations. The proposed legislation includes provisions such as
- Supporting the physical and mental well-being of disabled and elderly individuals through nature-based therapeutic practices and providing these services through an institutional framework;
- Granting taxi drivers who record their earnings through mandatory taxi tax machines the right to benefit from a revenue-based income assessment method;
- Exempting from income tax the gains arising from the transfer of taxi, minibus, and service vehicle licenses acquired before the effective date of the regulation;
- Establishing the legal framework for the basic rules that internet news sites that publish official announcements and advertisements must comply with;
- Exempting tickets for certain age groups from entertainment tax to facilitate access to social and cultural activities for children and students;
- Enabling the installment sale of real estate belonging to local administrations;
- Exempting the transfer of certain commercial licenses from Value Added Tax (VAT);
- and extending the VAT exemption period until December 31, 2028, to ensure the uninterrupted continuation of reconstruction and public service investments in the earthquake zone.
- It is accepted by the Commission, and it started to be heard in the General Assembly.
Türkiye's New Tax & Investment Reform Package Enters into Force
- You can see the details of the Law submitted to Parliament.
- Türkiye entered a new phase in May 2026 with the enactment of a broad tax and investment reform package aimed at strengthening the country’s position as a regional production, services and financial hub. The recent legislative developments should not be viewed solely as technical tax amendments. The new framework reflects a broader economic positioning strategy focused on manufacturing, exports, technology, international services and regional management structures.
1. Türkiye Introduces a New Investment & Tax Architecture
New omnibus law signals strategic economic repositioning
Türkiye’s recently adopted omnibus law introduces substantial amendments in corporate taxation, export incentives, service income structures and investment policies. The overall direction of the reform indicates a selective and sector-oriented tax architecture.
Why it matters: The reform package appears to prioritize export-oriented production, qualified service exports, regional management activities, technology ecosystems and high value-added sectors.
2. Qualified Service Centers Become a New Strategic Model
Türkiye aims to attract regional management and high-value services
One of the most important developments of the month is the introduction of the 'Qualified Service Center' regime within the Istanbul Financial Center ecosystem and within Industry Zones.
Why it matters: Türkiye appears to be positioning itself not only as a manufacturing base, but also as a regional coordination and management center for multinational groups.
3. Istanbul Financial Center (IFC) Incentives Continue to Expand
IFC ecosystem receives broader tax and operational advantages
The Istanbul Financial Center regime continues to evolve beyond a traditional financial district model. New amendments expand both tax incentives and operational flexibility for participant companies.
4.Transit Trade Incentives Gain Strategic Importance
Türkiye expands support for international trade structures
Transit trade and foreign trading intermediation activities became one of the most discussed subjects of May 2026.
Why it matters: This approach indicates a broader ambition: Türkiye aims to strengthen its role in regional and global trade flows.
5.Export-Oriented Manufacturing Receives Additional Focus
Corporate tax differentiation becomes more visible
The reform package includes differentiated corporate tax approaches for exporters and manufacturing exporters.
6.Technology & Startup Ecosystem Continues to Evolve
New approaches emerge for innovation financing and employee incentives
Türkiye continues to strengthen its technology and startup ecosystem through additional regulatory support mechanisms.
The Revenue Administration announced the secondary legislation for the new Omnibus Law.
- New Tax Incentives for Transit Trade
- Istanbul Financial Center (IFM) Regime: For entities operating within the IFM, the corporate tax deduction on transit trade profits is increased from 50% to 100%, effectively providing a full tax exemption.
- National Scope: For activities conducted outside the IFM, the deduction rate is set at a highly competitive rate of 95%.
- Boosting the Tech Ecosystem for stock options.
- Equity incentives: The tax-free limit for stock options granted to employees of "techno-entrepreneurship" companies is doubled to twice the annual gross salary.
- Holding period of the shares: To accelerate liquidity, the minimum holding period for full tax exemption on these shares is substantially reduced. It used to be very long, and it is not very useful for technology companies.
- Regional Management Hubs
- Global companies relocating their regional headquarters to Türkiye will benefit from a 20-year corporate tax deduction (100% via IFM, 95% elsewhere) on profits from foreign operations.
- Türkiye used to have a regional management hub regime for corporate tax and income tax. But corporate tax incentive was abolished after a while.
- New Foreign Income Exemption Regime
- Türkiye introduced a 20-year foreign income exemption regime for qualifying individuals relocating to Türkiye, signaling a broader effort to attract international talent, entrepreneurs and high-net-worth individuals.
- Lower Corporate Tax Rates for Industrial Firms
- Corporate tax rates for manufacturing exporters were announced to be reduced to 9%, while other export firms would see a reduction to 14%. This has been amended by the Commission, and it is not changed in the General Assembly. It is accepted as 12,5 % corporate tax rate for industrialist firms but kept same for exporters.
- Takeaway: Announced package represents a landmark shift in Türkiye's fiscal policy, significantly lowering the cost of doing business for industrial firms. We recommend reviewing your current structures to maximize these new strategic benefits.
- New Asset Repatriation (Wealth Amnesty) Regime
- A new window is opening until July 31, 2027, allowing individuals and corporations to bring offshore assets (cash, gold, securities) into the national economy with tax rates as low as 0% for long-term commitments.
- It will be applicable for the assets in Türkiye as well for the taxpayers.
- Individuals and companies may declare offshore cash, gold, foreign currency, securities and other financial assets, as well as certain unrecorded domestic assets.
- The new regime introduces a graduated tax structure under which the applicable tax burden may be reduced, potentially reaching 0% depending on holding commitments and timing conditions.
Türkiye-Tanzania Double Tax Agreement has been signed.
- The “Agreement between the Government of the Republic of Turkey and the Government of the United Republic of Tanzania for the Avoidance of Double Taxation and Prevention of Tax Evasion and Avoidance with Respect to Taxes on Income” was signed in Dar es Salaam on May 4, 2026.
- With this agreement, the number of Double Taxation Avoidance Agreements concluded by Turkey has reached 107, of which 93 have entered into force.
New tax incentives are increasingly linked to sworn tax advisor certification.
- Türkiye continues to expand its investment and tax incentive framework. However, access to many newly introduced tax benefits is becoming increasingly dependent on certification by a Sworn Tax Advisor (YMM). You can read the details in Taxia blog
- Several new tax incentives require certification through a Sworn Tax Advisor report to benefit from the relevant exemptions or deductions.
- The approach reflects a broader policy objective of strengthening tax compliance while maintaining attractive incentive mechanisms.
- Companies planning to benefit from transit trade incentives, regional management hub structures, technology incentives or other preferential tax regimes should review documentation and reporting requirements at an early stage.
VAT Communiqué No. 58 introduces new exemptions and clarifications
- Turkish Tax Administration has amended the VAT General Application Communiqué, introducing a VAT exemption for transfers of expropriated real estate to public authorities and expanding certain exemptions applicable to foundation-owned properties. The Communiqué also limits the VAT exemption currently available to healthcare facilities operated by foundation universities, effective from 1 January 2027. These changes are particularly relevant for infrastructure projects, public acquisitions, and foundation-related entities.
The withholding tax rate for nuclear construction projects has been reduced to 1%.
- The withholding tax rate to be applied to progress payments for multi-year nuclear power plant construction and repair projects has been set at 1%. Normally 5%, the withholding tax rate for multi-year construction and repair projects had previously been reduced to 1% for shipbuilding and repair and rail system construction.
Banking & Finance
Central Bank of Republic of Türkiye kept the interest rates as expected.
- The Monetary Policy Committee (the Committee) has decided to keep the policy rate (the one-week repo auction rate) at 37 percent. The Committee has also maintained the Central Bank overnight lending rate and the overnight borrowing rate at 40 percent and 35.5 percent, respectively.
Commercial Regulations
SGK revises minimum labor (minimum workmanship) rules for construction and contracting projects
- Türkiye's Social Security Institution (SSI) has amended the regulations governing minimum labor assessments for construction and public procurement projects. The changes clarify the calculation methodology, expand SSI's authority to initiate reviews, and introduce new procedural requirements for multi-license construction projects.
New Rules for e-Documents via Cash Registers (VUK General Communiqué No. 593)
- The Turkish Revenue Administration has introduced a new framework allowing approved New Generation Cash Registers (NGCRs) to issue certain electronic documents (e-Documents) directly through the device.
- Sales collection and e-document issuance can be integrated into a single platform.
- Businesses may benefit from a more streamlined and automated invoice process.
- Device manufacturers will be able to provide e-document services subject to authorization by the Revenue Administration. The regulation supports Türkiye's broader digitalization and e-transformation agenda.
- Retailers, restaurants, hospitality businesses, fuel stations, and other taxpayers using new generation cash registers may benefit from simplified compliance and operational efficiencies.
- Although Communiqué does not introduce a new tax or reporting obligation, it represents a significant step towards the integration of payment systems and e-document processes, potentially reducing administrative burdens and enhancing digital tax compliance.
Amendments have been made to the Land Registry Law and several other related laws.
- The law, which has been on the Parliament's agenda for a long time, introduces fundamental changes in building inspection, fire control, zoning, and housing, and includes an update that will be important from a tax perspective in the future, such as the mandatory and free sharing of valuation reports.
The transition period for private healthcare institutions ends in June.
- According to the regulation, healthcare personnel in hospitals must be employed directly under the Social Security Institution (SGK) in payroll. Currently, it is common for doctors to invoice the hospitals where they work.
- Furthermore, a doctor can work in a maximum of two different hospitals.
Customs & Foreign Trade
Turkish Constitutional Court narrows the scope of customs penalties
- The Constitutional Court has ruled that customs irregularity penalties must be based on obligations explicitly prescribed by law. As a result, penalties relying solely on secondary legislation may no longer be enforceable, creating potential opportunities for taxpayers with pending customs disputes.
R&D and Incentives
Regulations have been made regarding the Technology Initiative Program support.
- The evaluation, monitoring, and support processes for investment projects under the "Technology Initiative Program" have been updated.
- With this regulation, the scoring-based system for project evaluations has been strengthened, and it has been stipulated that the commissions will consist of representatives from TÜBİTAK, KOSGEB, and the Ministry, and that independent evaluators may also be included in the process. Furthermore, the influence of stakeholders collaborating on projects has been increased, and the processes for disqualification and appeals have been clarified.
- The processes related to monitoring and completing investments have been tightened, making annual monitoring, on-site inspection, and completion expertise mandatory; the provisions regarding the removal of unsuccessfully completed projects from the program and the recovery of support based on the certified public accountant's report have been updated.
Miscellaneous
Turkish DPA issues new guidance on workplace surveillance cameras
- The Turkish Data Protection Authority (KVKK) emphasized that workplace cameras must be used only for legitimate purposes such as security and occupational safety. Monitoring employee performance, productivity or attendance through camera systems may violate data protection rules and expose employers to administrative sanctions.
- Companies should review their CCTV policies, retention periods and employee monitoring practices to ensure compliance with Turkish data protection requirements.
KVKK (DPA) restricts the use of biometric data for employee time tracking
Employee consent is no longer a safe harbor for biometric attendance systems in Türkiye.
- The Turkish Data Protection Authority (KVKK) clarified that fingerprint, facial recognition and similar biometric systems should not be used solely for attendance monitoring. Employers are expected to rely on less intrusive alternatives such as access cards, PIN-based systems or traditional attendance records.
- For multinational companies operating in Türkiye, the decision increases compliance expectations around HR technologies and workforce monitoring. Even employee consent may not be sufficient to justify biometric attendance systems, particularly where less intrusive alternatives are available. Companies using fingerprint or facial recognition systems for timekeeping should reassess their practices and data protection compliance frameworks.
COP31 is a hot topic in Türkiye and firms should act in this.
- It will be held in Antalya, and the web site gives main information regarding the conference. COP31 – Climate Action Starts Here
- The Conference of the Parties (COP) is the annual United Nations climate summit where nearly 200 countries negotiate and commit to actions addressing the climate crisis. COP31, the 31st such conference, will be hosted by Türkiye in Antalya — bringing together world leaders, scientists, civil society, and the private sector to shape the future of climate action.
Key Takeaways
- Türkiye is strengthening its position as a regional services and management hub.
- Corporate tax incentives are increasingly targeted at manufacturing, exports and technology sectors.
- Access to tax incentives is becoming more compliance driven.
- Pillar Two implementation and international tax transparency continue to accelerate.
- Regulatory reforms are expanding beyond taxation into sustainability, data protection and digital transformation.
Hope to see you in 2 months with new Tax Newsletter in English.
Best regards,
Taxademy Partners
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