Official Gazette No. 33227 – Published on 17 April 2026
Turkish Trade Lawyers (TTL) provides the following concise legal update regarding Law No. 7577, which introduces significant amendments across tax, social security, energy, and investment-related legislation in Türkiye.
Key Highlights
1. Non-Deductible Expenses Expanded (Income & Corporate Tax)
Advertising and promotional expenses related to games of chance and betting are now explicitly classified as non-deductible expenses for both income tax and corporate tax purposes.
This directly impacts companies operating in or advertising within these sectors.
2. VAT Exemptions – Important Clarifications
- Certain VAT exemptions for foundations and educational institutions have been narrowed.
- A new exemption is introduced for transfers of immovable property to public authorities within the scope of expropriation.
This may affect real estate transactions involving public entities.
3. Free Zones – Broader Scope of Income Benefits
Income derived from sales is now expanded to include:
- Sales within free zones, and
- Sales between different free zones
This amendment strengthens the attractiveness of free zones for intra-zone trade.
4. Presidential Authority on Unemployment Insurance Contributions
The President is now authorized to increase or decrease the state contribution rate by up to 50%.
This introduces flexibility but also uncertainty for employers in workforce cost planning.
5. Special Regulation for BOTAŞ (Energy Sector)
A temporary provision allows:
- Offset and cancellation of certain public debts of BOTAŞ against receivables from the Treasury,
- Without additional interest accrual.
This is a sector-specific financial restructuring mechanism.
6. Privatization of Public-Owned Real Estate
Public institutions and entities may request inclusion of their real estate assets in the privatization program.
This opens the door for broader asset sales and potential investor opportunities.
7. SCT (Special Consumption Tax) – Disability Vehicle Exemption Revised
- New thresholds and conditions introduced for vehicles purchased by persons with disabilities.
Companies in the automotive sector should review compliance and pricing strategies.
8. Social Security Premium Exemptions Expanded
Certain payments are now excluded from premium calculations, including:
- Limited meal allowances (up to TRY 300 per day)
- Employer contributions to private health insurance and pension schemes (within limits)
This may reduce employer-side social security costs.
9. Earthquake-Affected Regions – Payment Incentives
- Significant discounts (up to 74%) for early lump-sum payments related to housing and workplace debts in disaster zones.
Aimed at accelerating financial recovery and reconstruction.
Entry into Force
- Most provisions entered into force on 17 April 2026.
- Some VAT-related provisions will become effective on 1 January 2027 or later dates as specified.
Practical Takeaways
- Businesses in advertising, gaming, and betting sectors must reassess tax deductibility.
- Free zone operators benefit from expanded tax advantages.
- Employers should review payroll structuring in light of updated exemptions.
- Investors should monitor privatization opportunities and real estate transfers.
- Regulatory flexibility introduced in several areas increases the importance of ongoing legal monitoring.
