Law No. 7555 Amending the Law on the Protection of the Value of Turkish Currency, Certain Laws and Decree Law No. 635 was published in Official Gazette No. 32965 of 24 July 2025.
“Law No. 7555 Amending the Law on the Protection of the Value of Turkish Currency, Certain Laws and Decree Law No. 635” was published in Official Gazette No. 32965 of 24 July 2025.
The amendments made by Law No. 7555 are as follows:
1- Amendments concerning the application of reduced corporate income tax:
The application period for reduced corporate income tax, previously unlimited, has been limited to ten years, and the period for applying the reduced corporate income tax rate to other income has been limited to four years. Previously applied only during the investment period, the reduced corporate income tax on other income is now limited to four years without any distinction between the investment period and the operating period.
Under the amendment, investment contribution amounts not used despite the existence of income may not be taken into account in subsequent periods.
The investment contribution amount an investor may use against income from other activities during the investment period may in no case exceed 50% of the total investment contribution amount, nor the investment contribution amount earned.
The tax reduction rate, which the President was empowered to set at up to 90% and which had for years been applied at between 50% and 90% depending on the region, has been set at 60% for all regions. In addition, under the amendment, the reduced rate for income subject to corporate income tax at 25% has been set at 10%.
These provisions will apply to investment incentive certificates obtained from the date of publication (24 July 2025), excluding those applied for before 16 June 2025 and not rejected.
2- Amendments to the VAT Law:
Deliveries of light commercial vehicles, trucks, vans, off-road vehicles in the van category and motorcycles acquired by the Ministry of National Defence, the Ministry of Interior, the Presidency of Defence Industries and the National Intelligence Organisation exclusively for national defence and internal security needs, and used for that purpose, have been exempted from VAT.
Transfers and deliveries relating to the sale of immovable property owned by foundations within the Directorate General of Foundations and by the annexed foundations administered by that institution have been exempted from VAT.
Special consumption tax calculated and secured by collateral on the importation of goods listed in List I annexed to the Special Consumption Tax Law (such as fuel products and oils) will be included in the VAT base even if it has not yet been paid.
3- Amendments concerning special consumption tax:
An SCT exemption has been introduced for purchases, for use in national defence and internal security, of vehicles in List (II) annexed to the Special Consumption Tax Law with a domestic content ratio of at least 40%, of vehicles under tariff heading 87.04 designed for the carriage of goods regardless of domestic content ratio, and of vehicles under tariff heading 87.11 such as motorcycles and mopeds.
The President has been given the additional power to set different rates for the goods in List (II) annexed to the Special Consumption Tax Law and for the tax base groups underlying those rates, by reference to engine power, type, class, superstructure body description, emission type and value, payload, and passenger and cargo carrying capacity, and, for passenger cars under CN code 87.03 and vehicles principally designed to carry people, by reference to engine cylinder capacity, range and battery capacity.
The tax base thresholds and SCT rates have been updated for certain fossil-fuel passenger cars and certain hybrid cars having both a fossil-fuel engine and an electric motor, listed under the “Others” line of CN code 87.03 in List (II) annexed to the Special Consumption Tax Law. The threshold values and rates are set out below.
4- Other amendments:
4.1. Removal of the signature requirement on electronic inspection slips
Under the sentence added to the second paragraph of Article 131 of Tax Procedure Law No. 213, the requirement for the signatures of officials such as police officers, gendarmes and village headmen on inspection slips issued electronically and not bearing the signature of the person concerned has been removed.
4.2. Limitation of the incentives provided to R&D personnel under Law No. 5746
The unlimited income tax incentive provided to employees in technology development zones and R&D centres is being removed. Previously applicable without limit on a per-employee basis, this incentive is being capped at 40 times the gross monthly minimum wage.
The income tax and stamp duty calculated on the portion of salary exceeding 40 times the minimum wage may not be remitted. The provision entered into force on 1 August 2025.
4.3. BITT exemption not applicable to organised industrial zone loans
It has been provided that the exemption from all taxes, duties and charges granted to organised industrial zone legal entities under the Organised Industrial Zones Law does not cover banking and insurance transactions tax.