May 2026 Financial Agenda
While we were preparing to take a breath of fresh air after submitting the Corporate Income Tax Returns in April, unfortunately, we could not take this breath due to the successive new regulations.
The most significant item on the agenda of May was undoubtedly the Law on Amendments to Certain Laws, which was accepted by the Grand National Assembly of Turkey with Law No. 7582 and published in the Official Gazette dated 04.06.2026 and numbered 33270.
This Law contains important regulations especially aimed at ensuring the entry of foreign currency and foreign investors into the country. These are briefly as follows:
- The maximum deferral period regarding the deferral of public receivables has been increased from 36 months to 72 months, and the amount of receivables for which no guarantee will be sought for deferral has been increased from TRY 50,000 to TRY 1,000,000.
- Personal Income Tax and Inheritance and Transfer Tax exemptions and deductions have been introduced for persons considered to have newly settled in Türkiye.
- Ameliorative regulations have been made regarding the wage exemption in benefits provided to service personnel working in techno-startup companies by granting them shares.
- Significant tax advantages have been introduced regarding qualified service centres. Higher tax advantages have been envisaged for qualified service centres operating in industrial zones to be determined by the President and in the Istanbul Financial Center.
- A corporate income tax deduction of up to 95% of the earnings of those engaged in transit trade or mediating trade carried out abroad has been provided. This deduction has been determined as 100% for corporations operating in industrial zones to be determined by the President and in the Istanbul Financial Center.
- The corporate income tax rate for corporations engaged in industrial and agricultural production has been reduced from 25% to 12.5%, to apply to earnings obtained as of 1.1.2027.
- A new wealth amnesty has been introduced. Within this scope, tax inspections and tax assessments derived from these assets cannot be conducted by bringing money, gold, foreign currency, securities, and other capital market instruments located abroad into the country or by recording the assets of the same nature located in the country.
Apart from this, another important tax development of May was the General Communiqué No. 25 on Corporate Income Tax. The significant matters contained in this Communiqué can be listed as follows:
- Explanations have been provided regarding the profit distribution obligation introduced for investment funds to benefit from the corporate income tax exemption due to the income they derive from their immovable properties.
- It has been explained that profits and losses arising from the same type of exempt activities can be offset against each other, whereas profits and losses arising from different types of exempt activities cannot be offset against each other; furthermore, even if the transactions subject to exemption are of the same type, each of them will be handled separately, and profitable transactions must be taken into account as exempt while loss-making transactions must be treated as non-deductible expenses.
- Explanations have been provided regarding the determination of the investment contribution amount to be deducted from the minimum corporate tax.
Apart from those mentioned above, other important tax regulations introduced in May can be briefly summarized as follows:
- The withholding rate in nuclear power plant construction and repair works extending over years has been reduced from %5 to %1.
- Tender decisions regarding social housing construction works opened by the Housing Development Administration and contracts made with this administration have been exempted from stamp duty until 31/12/2027.
- The rate of accommodation tax has been reduced from %2 to %1, to apply until 31/12/2026.
- Tax regulations have been made regarding donations made to Darülaceze.
You can find our circulars regarding the developments for May, which we have tried to summarize above, in our Bulletin. We wish ease to all employees under this intense bombardment of legislation.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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