| TAX CIRCULAR: 2026-104 | DATE: 03.08.2026 |
The significant changes made in the tax laws with Law No. 7590, published in the Official Gazette No. 33326 dated July 31, 2026, are summarized below:
Value Added Tax Law Amendments (Nuclear Power Plants)
With Provisional Article 49 added to the VAT Law, the following exemptions have been granted to taxpayers who receive a pre-license and/or license to generate electrical energy in nuclear power plants, valid until 31/12/2045:
- The VAT incurred due to construction works within the scope of investment incentive certificates, which cannot be compensated through deduction, will be refunded to the taxpayer upon request.
- Deliveries of machinery and equipment to be made within this scope are exempt from VAT.The regulations entered into force as of August 1, 2026.
Stamp Tax Law Amendment
With the paragraph added to the “Papers related to commercial and civil affairs” section of table (2) attached to the Stamp Tax Law; papers drawn up regarding nuclear power plant investments to which legal entities holding a pre-license/license to generate electricity in nuclear power plants are parties, have been exempted from stamp tax.
The regulation entered into force as of July 31, 2026.
Corporate Tax Law Amendment (Thin Capitalization)
With Provisional Article 20 added to the Corporate Tax Law; in borrowings made from partner or related banks/credit institutions within the scope of nuclear power plant investments, the 50 percent rate to be considered as disguised capital (thin capitalization) will be applied as 25 percent until 31/12/2045.
The regulation entered into force to be valid for corporate earnings belonging to accounting periods starting from January 1, 2026.
Special Consumption Tax Law Amendments (Passenger Cars)
Significant changes have been made regarding passenger cars with HS code 87.03 in the list (II) attached to the SCT Law:
- “Traction system” has been added to the criteria for determining different tax rates.
- It has been stipulated that the minimum fixed tax amount cannot be less than 30,000 TL for (L) class vehicles and 100,000 TL for other vehicles (To be increased annually by the revaluation rate).
- The President has been authorized to determine different minimum fixed tax amounts based on criteria such as engine power, cylinder volume, traction system, range, battery capacity, type, emission type, and value.
