Tax Incentıves

According to the legislation specified in the Istanbul Financial Center Law, entities operating by obtaining the requisite authorizations from the relevant regulatory authorities are deemed financial institutions, and the activities they conduct are recognized as financial services. In the event that these services are rendered to non-residents and utilized abroad, such activities shall constitute the export of financial services.

While eligibility for certain incentives listed below is contingent upon the execution of financial services exports, entitlement to some others is granted solely by virtue of holding the status of a financial institution.

Regional treasury and financial management centers of participants actively operating in at least three countries may also benefit, in the same manner, from the incentives granted to institutions engaged in Financial Activities within the Scope of the Law.

100%

Total earnings derived from the export of financial services shall be entirely deducted from the corporate tax base until June 22, 2047.

100%

100% of earnings from the sale of goods or brokerage services will be deductible from a company’s income, provided the goods are purchased and sold abroad and the earnings are transferred to Türkiye by the corporate tax return deadline.

* To qualify for the deduction, the profit must be transferred to Türkiye within the same year, and both the buyer and seller involved in the brokerage activity should not be based in Türkiye.

A “Qualified Service Centre” shall mean the joint-stock companies established to perform the activities and provide services specified in the relevant regulation, to their affiliates or group companies that are actively operating in at least three different countries; on the condition that, at least 80% of their annual revenue is derived from these foreign affiliates or group companies. The following incentives shall be provided to “Qualified Service Centers” established within the IFC:

• 100% Corporate Tax Exemption: 100% of the income generated from these foreign activities and group companies shall be deducted from the corporate tax base for 20 accounting periods starting from the accounting period in which the operations commence, subject to the condition that the earnings are transferred to Türkiye.
• Income Tax Exemption for Personnel Wages: 5 times the gross minimum wage shall be entirely exempt from income tax of qualified service personnel employed in these centers.

* Both the general personnel income tax exemption provided to participant certificate holders and the Qualified Service Centre income tax exemption cannot be applied concurrently to the same personnel.

The following exemptions and deductions are applied to the corporate income when calculating the domestic minimum corporate tax:

• Corporate Tax Deduction for Transit Trade
• Corporate Tax Deduction for Qualified Service Centers
• Corporate Tax Deduction for Financial Services Export

Transactions relating to the activities shall be exempt from all kinds of fees, and papers issued in relation to such transactions shall be exempt from stamp tax.

Financial institutions operating within the IFC shall be exempt from financial activity fees for a period of twenty years from the effective date of the Law (until 2043).

All transactions related to real estate leasing within the IFC are exempt from charges, and any documents issued for these transactions are also exempt from stamp duty for a period of twenty years.

100%

Transactions and funds received by financial institutions for activities related to the export of financial services are exempt from the Banking and Insurance Transactions Tax (BSMV).

All transactions related to financial service exports, as well as any documents issued for these transactions, are exempt from stamp duty and all associated charges.