New Corporate Tax Rules in Türkiye: What Businesses Should Know
Türkiye continues to modernise its corporate tax framework with the publication of Corporate Income Tax General Communiqué No. 26, which clarifies several amendments introduced by recent legislation. The reform affects both Turkish companies and international investors operating through subsidiaries, branches or regional service centres.
For foreign businesses, these developments create new opportunities to benefit from attractive tax incentives while reinforcing the importance of tax compliance and proper corporate structuring.
At Azkan Group, we assist international companies in understanding these legislative changes and implementing practical solutions that maximise tax efficiency while ensuring full compliance with Turkish regulations.
Main Changes Introduced by the 2026 Reform
The new Communiqué provides detailed implementation rules covering several strategic sectors of the Turkish economy.
Among the most significant measures are:
- expanded tax incentives for manufacturers operating in Free Zones;
- new deductions for qualifying international trading activities;
- a dedicated tax regime for Qualified Service Centers;
- reduced corporate income tax for certain manufacturing and agricultural activities;
- clarification of the interaction between tax incentives and the domestic minimum corporate tax.
These measures form part of Türkiye’s broader strategy to encourage investment, exports and high-value international services.
Expansion of Free Zone Corporate Tax Benefits
Manufacturing companies established in Turkish Free Zones may now benefit from a broader corporate income tax exemption.
The reform extends the exemption beyond exports to include qualifying sales made within the same Free Zone or between Turkish Free Zones, provided the legal requirements are satisfied.
For manufacturers serving international markets, this amendment may significantly improve the overall tax position of their Turkish operations.
New Deduction for International Trading Activities
The legislation also introduces an attractive incentive for companies engaged in international trading.
Where goods are purchased outside Türkiye and sold to another foreign customer without entering the Turkish customs territory, a substantial portion of the qualifying income may become deductible from the corporate income tax base.
Businesses must nevertheless satisfy several statutory conditions, including maintaining separate accounting records and transferring the qualifying profits to Türkiye within the prescribed deadline.
Qualified Service Centers Receive Additional Tax Incentives
One of the most innovative aspects of the reform concerns Qualified Service Centers.
Companies recognised under the Foreign Direct Investment framework and providing qualifying services to foreign markets may benefit from significant corporate tax deductions.
Under specific circumstances, businesses established within designated investment areas or the Istanbul Financial Center may qualify for even more advantageous tax treatment.
This measure aims to position Türkiye as a regional hub for shared services, finance, technology and business support operations.
Reduced Corporate Income Tax for Manufacturing Activities
Starting with the 2027 tax year, qualifying manufacturing and agricultural income may benefit from a reduced corporate income tax rate of 12.5%, provided the statutory requirements are fulfilled.
Eligible manufacturers generally need to hold the appropriate Industrial Registry Certificate and satisfy the conditions established by Turkish tax legislation.
This reduction further strengthens Türkiye’s competitiveness as a production base for international manufacturers.
Increased Importance of Tax Compliance
Although the new incentives create valuable opportunities, they also introduce stricter compliance obligations.
Companies should carefully review:
- accounting segregation of qualifying income;
- documentation supporting incentive claims;
- transfer deadlines for overseas profits;
- contractual arrangements;
- licensing requirements;
- eligibility for Free Zone or Qualified Service Center status.
Failure to satisfy these conditions may result in the loss of valuable tax benefits.
Practical Recommendations for Foreign Companies
International businesses operating in Türkiye should consider reviewing their existing tax structure to determine whether they qualify for the new incentive regime.
Areas requiring particular attention include:
- supply chain organisation;
- intercompany transactions;
- export structures;
- accounting systems;
- operational licences;
- corporate governance procedures.
A proactive review can often identify opportunities for improved tax efficiency while reducing future compliance risks.
How Azkan Group Supports International Investors
Understanding Turkish tax legislation requires both technical expertise and practical local experience.
Azkan Group provides comprehensive support to foreign companies throughout every stage of their investment in Türkiye, including:
- corporate tax advisory;
- company formation;
- accounting and bookkeeping;
- payroll outsourcing;
- Employer of Record (EOR) services;
- corporate compliance;
- HR administration;
- business management solutions;
- work permit applications;
- ongoing legal and administrative coordination.
Our multidisciplinary teams work closely with international clients to ensure their Turkish operations remain fully compliant while benefiting from available tax incentives.
The 2026 Corporate Income Tax reform represents another important milestone in Türkiye’s efforts to attract international investment and strengthen its position as a regional business hub.
Manufacturing companies, international trading businesses and qualified service providers may all benefit from the new rules, provided they satisfy the applicable legal requirements.
Businesses planning to establish or expand operations in Türkiye should assess these legislative developments carefully and ensure that their corporate structure is aligned with the latest tax framework.
With local expertise and an integrated approach combining tax, payroll, HR and corporate services, Azkan Group helps international companies navigate Türkiye’s evolving regulatory landscape with confidence.
Frequently Asked Questions
When do the new corporate tax rules apply?
Most provisions entered into force following the publication of Corporate Income Tax General Communiqué No. 26 in July 2026, while certain reduced tax rates become applicable from the 2027 tax year.
Which companies benefit the most?
Manufacturers, exporters, Qualified Service Centers and businesses conducting qualifying international trading activities are among the principal beneficiaries of the reform.
Can foreign-owned companies claim these incentives?
Yes. Foreign-owned subsidiaries incorporated in Türkiye may benefit from the incentives provided they satisfy the relevant statutory conditions.
How can Azkan Group assist?
Azkan Group advises foreign investors on tax planning, company incorporation, accounting, payroll, HR outsourcing, Employer of Record services and ongoing corporate compliance, helping businesses operate efficiently and securely in Türkiye.
