Türkiye’s headline corporate tax rate is 25%, but almost nobody pays a flat 25%. Between the reduced rates in Article 32, the incentive regime in Article 32/A and the 10% floor in Article 32/C, the effective rate depends entirely on where a company’s profit comes from — and, since June 2026, on which year it was earned in.

Corporate profits are taxed under Corporate Income Tax Law No. 5520. This guide sets out the rates in force as of September 2026, the reduced-rate regimes, and the rules governing how they interact.

The standard rates

Corporate taxpayers are capital companies, cooperatives, public economic enterprises, economic enterprises of associations and foundations, and joint ventures. A company is a resident taxpayer — taxed on worldwide income — if either its legal seat or its place of effective management is in Türkiye. Otherwise it is a non-resident taxpayer, taxed only on Turkish-source income.

Advance corporate tax is paid quarterly at the same rate that applies to the taxpayer. Withholding under Articles 15 and 30 is generally 15%, rising to 30% for payments to entities in jurisdictions designated by Presidential decree. Foreign transport corporations are taxed on deemed profit ratios applied to gross revenue: 12% land, 15% maritime, 5% air.

Effective rates at a glance

How the rules got here

• November 2020
  A 2-point reduction is introduced for companies floating at least 20% of their shares on Borsa İstanbul for the first time, applicable from the 2021 period.
• 2022 period
  Export income and certificated production income each receive a 1-point reduction.
• 2023 period
  The export reduction rises from 1 point to 5 points. The general rate moves to 25%, with 30% for banks and financial institutions.
• August 2024 — Law No. 7524
  A 10% domestic minimum corporate tax is added as Article 32/C, effective from the 2025 period, alongside the local and global 15% top-up tax under the OECD Pillar Two rules.
• 24 July 2025 — Law No. 7555
  The incentive regime in Article 32/A is tightened: a 10-period cap, a fixed 60% tax reduction rate, and a 4-period limit on other-activity income.
• 4 June 2026 — Law No. 7582
  Article 32(8) is rewritten. Production and agricultural production income moves from a 1-point reduction to a direct 12.5% rate — but only from the 2027 period onwards.

Reduced rates under Article 32

Article 32 is not a single “reduced rate”. It bundles several independent mechanisms, most drafted as point reductions off the standard rate and one now drafted as a direct rate. The distinction only matters when the standard rate is not 25% — for financial institutions at 30%, for instance.

In every case the reduction applies only to profit earned exclusively from the qualifying activity. Where a company has other income, the qualifying base is prorated:

Two ceilings always bind: the reduced-rate amount cannot exceed either the profit from the qualifying activity or the net corporate income for the period. And profit already exempt from corporate tax cannot also take a rate reduction — the exempt amount is stripped from both the numerator and the denominator.

Initial public offering — 2 points, five periods

Companies floating at least 20% of their shares on the Borsa İstanbul Equity Market for the first time apply a 2-point reduction (25% → 23%) for five accounting periods, beginning with the period of the offering.

• The 20% threshold is measured against total capital after the offering. A first float below 20% cannot be topped up later — the benefit is lost permanently.
• The free-float ratio must be maintained for five periods. If it is lost, or the company liquidates, merges or fully demerges within that window, the tax not accrued is collected with late payment interest, though without a tax loss penalty.
• Banks, financial leasing, factoring and financing companies, payment and e-money institutions, FX bureaus, asset management companies, capital markets institutions, insurers, reinsurers and pension companies are excluded.
• Only floats completed after 17 November 2020 qualify.

Export income — 5 points

Income earned exclusively from exports is taxed 5 points below the standard rate (25% → 20%). No certificate is required; carrying on export activity is enough.

Where service export income has already been deducted under Article 10/1-(ğ), only the remaining taxable portion qualifies for the 5-point reduction.

Production income — the regime that just changed

The condition has not moved: the company must both hold an industrial registry certificate (sanayi sicil belgesi) and actually carry on manufacturing. Holding the certificate without producing, or producing without the certificate, disqualifies the company outright. Software and IT production carried out within the scope of the certificate counts — under Industrial Registry Law No. 6948, software producers can obtain one.

What changed is the size of the benefit. Law No. 7582, published on 4 June 2026, rewrote Article 32(8) so that income earned exclusively from production — and from agricultural production, where the producer holds Farmer Registration System records or equivalent documentation — is taxed at 12.5%, half the general rate.

Export and production cannot be combined

When a manufacturer exports what it makes, the same profit qualifies under both headings — but the final sentence of Article 32(8) prohibits taking both. Only one reduction applies to a given amount of profit.

The arithmetic “12.5% plus 5 points equals 7.5%” is wrong in every period. And because the two regimes moved in opposite directions in June 2026, the better choice flips:

Where a manufacturer sells partly at home and partly abroad, the domestic share takes the production reduction and the exported share takes the export reduction, on separately computed portions of the tax base. Income from exporting bought-in goods is aggregated with income from exporting own production, and the total is treated as export income.

SME mergers

Where SMEs holding industrial registry certificates and actually manufacturing merge under Article 19(1), the President is authorised to reduce the rate by up to 75% on production income — for the merging company in its final short period, and for the surviving company in the merger period plus the following two accounting periods. An SME here means fewer than 250 average annual employees, with either annual net sales or total assets not exceeding TRY 1 billion, tested for the period preceding the merger. Losing SME status after the merger does not remove the benefit.

Separating the accounts

Revenue, cost and expense items for reduced-rate activities must be tracked separately. Where that is impossible, joint general expenses are allocated on a reasonable basis, and depreciation on shared plant, machinery and vehicles is allocated by days of use in each activity. In practice, an unallocated set of accounts is the most common reason a reduction is disallowed on audit — the certificate alone does not defend the position.

Incentivised investments — Article 32/A

This is a separate regime working on different logic. Income from an investment covered by an incentive certificate issued by the Ministry of Industry and Technology is taxed at a reduced rate until the investment contribution amount is exhausted.

Law No. 7555, published on 24 July 2025, substantially tightened the regime. The old rules still apply to certificates applied for before 16 June 2025 and not rejected, and to certificates obtained before 24 July 2025. Everything else falls under the new rules.

Excluded from Article 32/A entirely: companies in the finance and insurance sectors, joint ventures, and income from contracting works, Law No. 4283 build-operate power plants, Law No. 3996 BOT projects and royalty agreements. Land, plots, royalties, spare parts and other non-depreciable expenditure cannot enter the contribution amount.

The reduced rate applies from the provisional tax period in which the investment starts to be operated, wholly or partly. For other-activity income it starts from the beginning of the accounting period containing the date the investment physically began.

The minimum tax floors

Domestic minimum corporate tax — 10%

In force since the 2025 period, Article 32/C provides that computed corporate tax cannot fall below 10% of corporate income before deductions and exemptions — commercial balance sheet profit plus non-deductible expenses. If the normally computed tax is lower, the difference is payable as minimum corporate tax. Newly established companies are outside the rule for their first three accounting periods.

The interaction with the reduced rates is what matters most in planning:

Local and global top-up tax — 15%

Separately, Türkiye implemented the OECD Pillar Two rules with effect from the 2024 period. Multinational groups whose ultimate parent reported consolidated revenue above the TRY equivalent of EUR 750 million in at least two of the four preceding accounting periods face a 15% minimum effective rate, collected as local or global top-up tax. This is additional to, and computed differently from, the domestic 10% floor.

Ordering the reductions

Article 32(9) provides that the reduced rates in paragraphs 7 and 8 apply to the rate remaining after the other reductions in the article — not to the gross 25%. A company combining the IPO reduction with an export or production benefit in 2027 therefore reaches:

Applying a reduced rate straight to 25% and ignoring the sequencing is a common computational error.

Filing and payment

The annual corporate tax return is filed in the fourth month following the close of the accounting period, with payment due within the same month. Advance corporate tax is declared and paid quarterly. Exact deadlines shift with weekends and public holidays, so check the Revenue Administration’s current tax calendar at gib.gov.tr.

Before you file

1. Verify the industrial registry certificate. Both the certificate and actual production are required. Software producers should assess eligibility under Law No. 6948.
2. Separate production and export income in the accounts. Without a defensible allocation, the reduction fails regardless of the rate on paper.
3. Manufacturer-exporters: plan the choice by period. Export at 20% is generally better for 2026; production at 12.5% takes over from 2027. Only one applies to the same profit.
4. Model the minimum tax. Exemption-heavy structures and incentive certificates need the 10% floor and the Article 32/C(3) offset computed together.
5. Check the date on every incentive certificate. The 16 June 2025, 24 July 2025 and 2 August 2024 thresholds each change the answer materially.