Tax Incentives and Export Support for Manufacturing Companies in Türkiye: What the Law Actually Says as of June 2026

In April 2026, the Turkish government announced a sweeping tax reform package. On 21 May 2026, parliament passed Law No. 7582, which was published in the Official Gazette on 4 June 2026 and entered into force immediately. The enacted statute is narrower than the announcement — several headline figures from April either changed during drafting or did not pass at all. This article covers only what is actually in force today, with clear notes on what remains a policy intention.

1. Corporate Tax: What Passed and What Did Not

The baseline and who qualifies as a manufacturer

The standard corporate tax rate in Türkiye is 25%. Reduced rates apply to manufacturers, but two conditions must be met: a valid industrial registration certificate and active production operations. Production profits are calculated separately from the company’s other income.

12.5% rate for manufacturers — enacted, applies from 2027

Law No. 7582 introduced a 12.5% corporate tax rate on production earnings for companies holding an industrial registry certificate and actually engaged in manufacturing or agricultural production. The rate applies from the 2027 tax period.

This is a genuine reduction — roughly halving the effective rate on production income compared to the standard 25%. But there is a key constraint: income outside production activity — for example financial income — remains taxed at the general rate. This is why cleanly separating production and non-production earnings in the accounts is not a formality but the condition that determines how much profit reaches the lower rate.

9% and 14% export rates — not enacted

The 9% rate for manufacturer-exporters and the 14% rate for other exporters, which were widely discussed after the April announcement, did not make it into Law No. 7582. They may appear in a future legislative package, but as of today they are policy intentions, not law. Planning around these figures would be a mistake.

Investment incentive certificate relief

Companies holding an investment incentive certificate can additionally reduce corporate tax under Article 32/A of the Tax Code — up to a 60% discount for up to 10 tax periods, within the total investment contribution amount. This mechanism predates Law No. 7582 and continues to apply.

2. Benefits for Individuals: 20-Year Exemption and Inheritance Tax

20-year exemption on foreign income — enacted

Law No. 7582 inserted a new Article 20/D into the Income Tax Law: a person who becomes a Turkish tax resident, and who in the three calendar years before becoming resident had neither a domicile in Türkiye nor a tax liability in Türkiye, may keep foreign-source income outside the Turkish income tax base for 20 years. The exemption applies to income derived from 1 January 2026.

This is similar to the “non-dom” regimes used in the UK, Italy, and Greece. Relocating to Türkiye in 2026 is not too late: the exemption reaches income from 1 January 2026 for those treated as resident in that year, provided the three-year look-back before arrival is clean.

1% inheritance tax — enacted

For those benefiting from the 20-year exemption, inheritance of overseas assets during the exemption period is taxed at 1%. The ordinary progressive scale rises into double digits on larger estates, so a fixed 1% rate is a material reduction rather than a marginal one.

3. Istanbul Finance Center: Extended to 2047 and New Deductions

Extension and expansion — enacted

Law No. 7582 extended the Istanbul Finance Center incentive period from 2031 to 2047. For an institution weighing whether to take up a participant certificate, this transforms the planning horizon — the central benefit now has a two-decade runway.

Transit trade deduction — new, enacted

Earnings from buying goods abroad and selling them abroad without bringing them into Türkiye may now be deducted at 95%, rising to 100% for Istanbul Finance Center participants. The conditions are that the earnings are transferred to Türkiye by the corporate tax return deadline and that both the buyer and seller of the goods are outside Türkiye.

Qualified service centre deduction — new, enacted

Law No. 7582 defined the qualified service centre for companies that provide services to related parties across several countries and earn at least 80% of their income from abroad. Such a centre may deduct 95% of qualifying foreign-source earnings, rising to 100% inside the Istanbul Finance Center or approved industrial zones. The benefit runs for 20 accounting periods.

This is the enacted version of what the April announcement loosely called a “regional headquarters incentive.”

4. Wealth Amnesty — Enacted, Deadline 31 July 2027

Law No. 7582 introduced a wealth amnesty: individuals and companies may declare money, gold, foreign currency, and securities held abroad or unrecorded in Türkiye by 31 July 2027. The base rate is 5%, reducing to 0% for assets held in qualifying instruments for one to five years. Foreign assets must be transferred to a Turkish bank account within two months of declaration.

5. What Was Announced But Not Enacted

Several items from the April programme did not make it into law. It is important to know this to avoid building plans on rules that do not yet exist.

The 9% and 14% export rates — not enacted. The increase of the software, engineering, and architecture export deduction from 80% to 100% — not enacted, the deduction remains at 80%. The One-Stop Office for investors, the project-based stabilisation clause for large investments, and the Terminal İstanbul project are programme objectives, not legislative provisions.

6. Ministry of Trade Export Grants: What You Can Apply For

The Ministry of Trade updates support limits annually based on inflation. The 2026 figures are published and in effect.

Key grants and 2026 limits

E-export and training

Dedicated programs cover digital marketing, logistics, warehousing, and marketplace commissions for companies selling online across borders. In March 2026, the Ministry ran a free online training program on export processes and available support, aimed specifically at smaller companies.

How to use grants at each stage

• Starting out: market research grants and fair participation to find first buyers and build contacts
• Scaling up: overseas office rent, brand registration, and promotion campaigns — all with state co-funding
• Entering the EU market: the Green Deal adaptation grant covers carbon audits, energy efficiency upgrades, and traceability systems required under EU regulations

7. Priority Markets: Where Türkiye Directs Its Exporters

In 2026, the Ministry of Trade’s priority export market list expanded from 55 to 60 countries. Key markets include Germany, the US, the UK, France, Italy, China, India, Saudi Arabia, the UAE, Brazil, Mexico, South Africa, and Nigeria. New additions in 2026: Palestine, Hungary, North Macedonia, Slovakia, and Syria.

Active presence in priority markets opens access to stronger state promotion efforts and, in some cases, additional grant eligibility.

8. Practical Roadmap

Tax structure

• Obtain an industrial registration certificate and clearly separate production income from trading or service income in your accounts — this is the condition that unlocks the 12.5% rate from 2027
• If you hold an investment incentive certificate, combine it with the Article 32/A relief for up to 10 years of reduced corporate tax on qualifying investment projects
• If you are setting up a regional service or trading hub, look at the Istanbul Finance Center: the qualified service centre and transit trade deductions can reduce the effective tax rate to near zero or zero
• If you are considering relocating to Türkiye, the 20-year foreign income exemption and the 1% inheritance rate are already in force for those becoming resident in 2026

Using Ministry grants at each business stage

• Early stage: market research and trade fair participation
• Growth stage: overseas office rent, brand registration, promotion campaigns
• EU market entry: Green Deal adaptation grant
• Online sales: e-export program for digital marketing and logistics costs

Industry networks worth joining

The Turkish Exporters Assembly (TİM) and the Istanbul Chamber of Industry (İSO) provide sectoral data, cluster access, and direct channels to policy discussions — a practical starting point for companies new to the Turkish market.

9. One Important Constraint: The Global Minimum Tax

For large multinational groups with consolidated revenue of 750 million euros or more per year, a global minimum tax of 15% applies. If the effective rate in Türkiye falls below this threshold due to incentives, the difference is topped up to 15% — either in Türkiye or in the parent company’s country. For these groups the incentives are still relevant, but the final calculation must account for this floor. Companies below the threshold receive the full benefit.

Summary

For a manufacturing company that exports, Türkiye in June 2026 offers a set of measures that are actually in force: a legislatively confirmed 12.5% rate on production profits from 2027, up to 100% profit deductions for transit trade and qualified service centre activities, a 20-year foreign income exemption for new residents, a wealth amnesty running until July 2027, and inflation-adjusted grants covering everything from trade fairs to overseas offices. The main task for an entrepreneur is structuring the business correctly to use these tools — and not planning around figures that did not make it into law.