| TAX CIRCULAR: 2026-95 | DATE: 07.07.2026 |
The application principles regarding the repeated Article 20/D added to the Income Tax Law with the Law No. 7582 dated May 21, 2026, were explained with the General Communiqué on Income Tax Serial No. 333.
The prominent explanations within the scope of the said communiqué are listed below:
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Real persons who did not have a residence and tax liability in Turkey in the last three calendar years prior to being considered settled in Turkey will be able to benefit from the exemption.
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Those who wish to benefit from the exemption must be considered settled in Turkey as of the application date.
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Real persons who are considered settled in Turkey as of January 1, 2026, will be able to benefit from the exemption.
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Having a tax liability due to real estate capital income, movable capital income, or capital gains derived in Turkey before falling under the scope of this article does not prevent benefiting from this exemption.
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Taxpayers who wish to benefit from the exemption must apply to the authorized tax office by the end of the calendar year in which they are considered settled, or by the end of the second month of the following calendar year for those considered settled in the last two months of the calendar year, and obtain the “Exemption Certificate for Earnings and Revenues Derived from Abroad” (Exemption Certificate) included in the Communiqué annex (ANNEX-1) regarding their earnings and revenues within the scope of the exemption.
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The tax offices will check whether the applying taxpayers had a residence and tax liability in Turkey in the last three calendar years prior to being considered settled in Turkey and whether they are considered settled in Turkey; upon determining that the conditions are met, the exemption certificate will be issued to the applicants.
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Expenses and costs related to exempt earnings and revenues will not be taken into account in the determination of taxable earnings and revenues.
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Taxes paid in foreign countries due to the earnings and revenues within the scope of this exemption cannot be offset against the income tax assessed in Turkey.
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Only real persons will be able to benefit from the exemption, and corporate tax taxpayers will not be able to benefit from this exemption.
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The tax that has been incompletely accrued regarding the earnings of the taxpayers who are found to have benefited from the exemption despite not meeting the conditions regarding the exemption will be collected by the authorized tax office along with default interest by imposing a tax loss penalty.
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Those who cease to be a resident of Turkey later despite having obtained an exemption certificate will be evaluated according to Article 3 of the Income Tax Law, and these persons will not be taxed in Turkey over the earnings they derive outside of Turkey.
