Law No. 7566, published in the Official Gazette on 19 December 2025, introduced significant tax provisions, which are summarised below.
Law No. 7566, published in the Official Gazette on 19 December 2025, introduced significant tax provisions, which are summarised below:
1- Interest on a housing loan used to acquire a dwelling may no longer be deducted from rental income when calculating the income tax base. This applies to income earned in 2025.
2- With effect from 2025, the fourth advance tax period has been reinstated for personal and corporate income taxpayers.
3- Withholding tax has been introduced on certain equity-intensive funds. Previously, the sale of funds at least 51% of whose portfolio consisted continuously of shares traded on Borsa İstanbul was not subject to tax after being held for one year. Under the new provision, equity funds that have at least 51% of their portfolio traded on Borsa İstanbul will be taxed by way of withholding even if held for one year, where they:
- have participation units that may be sold only to qualified investors,
- are not traded on the Turkish Electronic Fund Trading Platform (TEFAS), and
- are not subject to any proportional limitation on the assets and transactions that may be included in the fund portfolio.
For equity funds outside these categories the exemption will continue to apply. The main purpose of the provision is to address the use of the existing exemption as a tax planning tool by certain hedge fund investors. (In force from 19 December 2025.)
4- The tax loss penalty on title deed fees has been increased from 25% to 100%. (In force from 19 December 2025.)
5- The notary fee on vehicle registrations and transfers has moved from a fixed amount to a proportional basis. A fee of two per thousand will be charged on the sale and transfer value, subject to a minimum of the fixed amount (TRY 1,000). This fee will not be charged on sales and transfers made to holders of a second-hand motor vehicle trading authorisation certificate. (In force from 1 January 2026.)
6- An annual fee has been introduced for certain licensed professions. Jewellers will pay TRY 30,000, car dealers TRY 20,000, real estate agents TRY 20,000, doctors opening a private practice TRY 20,000, dentists TRY 20,000 and veterinarians TRY 10,000. These amounts will be applied at increased rates according to the status of the workplace or centre concerned. (In locations within metropolitan boundaries with a population above 30,000, these amounts will be doubled.) (In force from 1 January 2026.)
7- The premium rate for invalidity, old age and death insurance has become 21% of the insured person’s earnings subject to premiums. Of this, 9% is the employee’s share and 12% (previously 11%) the employer’s share. The employer’s insurance premium has therefore increased by one point. (In force from January 2026.)
8- The ceiling earnings subject to insurance premiums is being raised from 7.5 times to 9 times the minimum wage. (In force from 1 January 2026.)
9- The insurance incentive arising from paying premiums on time is being reduced from 4 points to 2 points. The incentive will continue to be applied at 5 points for the manufacturing industry. (In force from January 2026.)
10- The application period of the provision in temporary Article 2 of the Corporate Income Tax Law, under which rental income and securities and interest income earned by associations or foundations and taxed by way of withholding does not give rise to a commercial enterprise, is being extended to 31 December 2035.