Türkiye: Law introducing tax reforms approved by Parliament
Including reduced 12.5% corporate tax rate for manufacturing and agricultural companies
june 3, 2026
The Grand National Assembly of Türkiye on May 21, 2026, approved an omnibus law introducing several tax reforms, including:
- Reduced corporate tax rate: A 12.5% corporate income tax rate for companies engaged exclusively in manufacturing and agricultural production is introduced, effective from the 2027 tax period (current rate is 25%).
- Restriction on export incentives: Companies applying the 12.5% rate will not be eligible for the existing 5-point corporate tax reduction on export income, preventing double tax benefits.
- Transit trade and overseas income incentives: Profits from overseas trade when goods do not enter Türkiye will benefit from a 95% corporate tax deduction, increased to 100% for companies operating within the Istanbul Financial Centre (IFC) or designated industrial zones.
- Qualified service centers regime: Newly defined “qualified service centers” (i.e., special category for companies operating in at least three countries and generating at least 80% of revenue from foreign affiliates) benefit from corporate tax deductions (95 or 100%) on eligible income.
- Domestic minimum corporate tax adjustments: Certain income streams (including transit trade, financial services exports, and qualified service center income) benefit from preferential deductions or adjustments that effectively exclude them from the 10% domestic minimum corporate tax base, effective from 2026. Under this regime, all corporate taxpayers are required to pay at least 10% of their adjusted corporate income before any deductions and exemption.
The legislation now awaits presidential approval and publication in the official gazette before becoming effective.
Read a June 2026 report prepared by KPMG’s EU Tax Centre