Partial Income Tax Exemptions for Investment Funds and Partnerships in Turkey
Under Turkish tax legislation, certain investment funds and investment partnerships benefit from partial corporate income tax exemptions, meaning that only specific types of income, rather than all profits, are exempt from taxation.The purpose of this regulation is to diversify capital markets and increase investor participation by providing targeted tax incentives. Conditions for the Exemption Application […]
Renewable Energy and Public–Private Partnership (PPP) Project Tax Exemptions in Turkey
In Turkey, companies investing in renewable energy projects and Public–Private Partnership (PPP) projects may benefit from partial corporate income tax exemptions on profits earned during specific periods.These incentives are designed to encourage private-sector participation in large-scale public investments and to support strategic projects in key sectors. Conditions for the Exemption Application and Explanation These tax […]
Overseas Construction, Repair, Assembly, and Technical Service Tax Exemption in Turkey
Turkey provides a corporate income tax exemption for profits derived from construction, repair, assembly, and technical service projects carried out abroad by Turkish resident companies.This regulation aims to enhance the international competitiveness of Turkish contractors and engineering firms in global markets. Conditions for the Exemption Application and Explanation The exemption applies only to services physically […]
Education and Healthcare Facility Tax Exemption in Turkey
To promote private investment in education and healthcare, Turkey provides a corporate income tax exemption for profits earned from newly established schools, hospitals, rehabilitation centers, and similar facilities operated by private entities.This incentive aims to enhance public service capacity, create employment, and encourage social investment in critical sectors. Conditions for the Exemption Application and Explanation […]
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)
In Turkey, corporations that sell real estate, participation shares, founders’ or redeemed shares, pre-emptive rights, or venture capital fund participation units held on their balance sheet for at least two full years may benefit from a partial corporate income tax exemption.The purpose of this incentive is to help companies generate financing through asset sales and […]
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 […]
