Education and Healthcare Facility Tax Exemption in Turkey
To promote private sector investment in socially critical sectors, Turkey provides a corporate income tax exemption for certain newly established private education and healthcare institutions under Article 5/1-ı of the Corporate Tax Law. This exemption aims to increase service capacity, improve access to quality education and healthcare, and encourage long-term private investment in public-benefit activities. […]
Technology Development Zone (TDZ) Tax Exemption in Turkey
In Turkey, companies operating in Technology Development Zones (TDZs / Technoparks) benefit from a major tax incentive: Profits generated from R&D, software, and design activities are exempt from corporate income tax. The purpose of this incentive is to encourage technological innovation, increase high-value-added production, and strengthen Turkey’s global competitiveness.The exemption applies only to income earned […]
Free Zone Income Exemption in Turkey
In Turkey, companies operating in Free Zones can benefit from a corporate income tax exemption on the profits they earn from production activities carried out within the zone.The main purpose of this incentive is to promote exports, enhance foreign trade, and strengthen Turkey’s international competitiveness. Conditions for the Exemption Application and Explanation The Free Zone […]
Cooperative Income Exemption in Turkey
Under Turkish tax law, the income of cooperatives arising from certain qualifying activities is exempt from corporate income tax, provided that the cooperative does not engage in transactions with non-members and operates in accordance with the principles of mutual assistance and solidarity.The purpose of this regulation is to preserve the non-profit nature of cooperatives and […]
Real Estate, Participation Share, Founders’ Share, Pre-emptive Right, and Venture Capital Fund Sale Exemption in Turkey (Article 5/1-e)
Under Article 5/1-e of the Turkish Corporate Tax Law (Law No. 5520), corporations may benefit from a partial corporate income tax exemption on gains derived from the sale of certain assets held in their balance sheet for at least two full years. The regulation aims to support corporate restructuring, enhance liquidity, and facilitate capital strengthening […]
Share Premium Exemption in Turkey
The share premium exemption in Turkey refers to the corporate tax exemption granted on income generated by joint-stock companies when issuing their own shares at a price above their nominal value during incorporation or capital increase.This income is known as a “share premium” (or “emission premium”) and represents a capital contribution rather than operating income.The […]
Foreign Subsidiary Share Sale Exemption in Turkey
The foreign subsidiary share sale exemption under Turkey’s Corporate Tax Law allows Turkish resident joint-stock companies to exclude from taxation the capital gains arising from the sale of shares in their foreign subsidiaries, provided that specific legal requirements are met.The main objective of this exemption is to reduce the tax burden on Turkish companies when […]
Foreign Affiliate Income Exemption in Turkey
The foreign subsidiary dividend exemption under Turkish corporate tax law allows Turkish resident corporations to exclude from taxation the profit distributions (dividends) they receive from their foreign subsidiaries, provided certain conditions are met.The objective of this exemption is to prevent the double taxation of profits earned abroad—first in the country where the subsidiary operates and […]
Participation Income Exemption in Turkey
The participation income exemption is one of the most fundamental regulations introduced in Turkey’s corporate tax system to prevent double taxation. This exemption ensures that a corporation’s share of profits earned as a partner in another corporation is not subject to corporate tax a second time, as the income has already been taxed at the […]
Global and Domestic Minimum Corporate Tax in Turkey
Understanding Pillar Two and QDMTT Implementation The global minimum corporate tax introduced under the OECD/G20 Inclusive Framework (Pillar Two) represents a fundamental reform designed to ensure that multinational enterprise (MNE) groups with annual consolidated revenue exceeding €750 million are subject to a minimum effective tax rate (ETR) of 15% in each jurisdiction where they operate. […]
