Corporate Tax Developments

• Special Corporate Regimes:

  • Exporters benefit from a 5 percentage point reduction in their corporate tax rate.

  • Build-Operate-Transfer (BOT) project earnings are now also taxed at 30%.

👤 Individual Income Tax Updates

• New Income Tax Brackets:

  • Brackets were adjusted for inflation in 2025 to reflect changes in earnings and maintain progressivity.

• Dividend Withholding Tax:

  • Increased to 15% (from 10%), effective from late 2024, affecting both residents and non-residents (subject to double tax treaties).

💵 Other Key Financial and Indirect Tax Changes

• Withholding Tax on Financial Instruments:

  • Higher withholding tax rates apply on returns from financial investments like deposits and bonds (except government bonds, which continue to enjoy a 0% rate temporarily through April 30, 2025).

• VAT Refunds:

  • As of September 2024, tax inspections are now the main method for processing VAT refunds, replacing simpler verification methods.

• Special Consumption Tax (SCT) Adjustments:

  • Fixed SCT amounts on goods (like tobacco and petroleum) will now be automatically updated twice a year (January and July), based on the domestic producer price index.

🚗 Other Specific Taxes

• Motor Vehicles Tax:

  • A one-time additional tax equal to the 2023 motor vehicle tax amount was introduced for vehicles already registered by the law's publication and those registered before the end of 2023.

🛡️ General Observations

• Türkiye’s changes aim to increase budget revenues, align with global tax standards (especially the OECD BEPS 2.0 project), and combat aggressive tax planning.

• Many adjustments reflect inflation-driven needs and international commitments (especially EU–OECD harmonization).