Significant Amendments Made to the Corporate Tax General Communiqué

The Corporate Tax General Communiqué Serial No. 26, which will guide the application of the amendments made to the Corporate Tax Law by Laws No. 7577 and 7582, was published in the Official Gazette dated July 4, 2026.

The prominent regulations within the scope of the said communiqué are summarized below:

1. Health Institutions of Foundation Universities Will Be Subject to Corporate Tax

   The tax exemptions of institutions such as hospitals, medical centers, and polyclinics operating within foundation universities and providing health services for a fee have been abolished. These enterprises must establish their corporate tax liability registrations as of January 1, 2027.

2. Exemption Scope Expanded for the Sale of Products Produced in Free Zones

   The scope of the exemption for the earnings derived by the taxpayers engaged in production activities in free zones from the sale of the products they manufacture in these zones has been expanded. To be applied to the earnings derived as of January 1, 2026, the earnings arising from the sales of these products not only abroad but also within the free zone or to other free zones will be exempt from corporate tax (Sales made domestically to Turkey are not within the scope of the exemption).

3. Earnings Deductions Provided for Transit Trade and Qualified Service Centers

• Transit Trade (Foreign Goods Purchase and Sale): 95% of the earnings derived from the sale of goods purchased from abroad without bringing them to Turkey or from mediating the purchase and sale of goods realized abroad can be deducted from the corporate income.

• Qualified Service Centers: 95% of the earnings derived from abroad by institutions operating as qualified service centers exclusively from these activities within the scope of the Foreign Direct Investment Law can be deducted from the corporate income.

• IFC and Industrial Zones Privilege: For institutions operating by obtaining a participant certificate in the Istanbul Financial Center (IFC) Zone and institutions operating in Industrial Zones deemed appropriate by the President, the above deduction rates will be applied as 100%.

• Conditions: In order to benefit from the deduction, the earnings must be transferred to Turkey by the deadline for submitting the corporate tax return.

4. Application of 12.5% Corporate Tax Rate for Manufacturing Institutions

   The corporate tax rate will be applied with a 12.5 point discount as 12.5% to the earnings derived exclusively from the production activities of the institutions holding an industrial registry certificate and actually engaged in production activities, and to the earnings derived exclusively from these activities by the institutions engaged in agricultural production activities.

• This regulation will be applied to the earnings derived in the 2027 taxation period and subsequent periods.

• For the earnings benefiting from this discount, the 5-point discount provided for the earnings derived from exports cannot be utilized additionally.

5. Deductions to be Subtracted in the Calculation of Domestic Minimum Corporate Tax

   Transit trade (foreign goods purchase and sale) earnings deductions, qualified service center earnings deductions, and earnings deductions within the scope of financial service exports realized in the Istanbul Financial Center Zone have been added to the exemptions and deductions that can be subtracted from the corporate income, which is the basis for the calculation of the “Domestic Minimum Corporate Tax”.