Turkey parliament cuts corporate tax for manufacturers to 12.5%, launches asset repatriation scheme
Turkey's parliament on Wednesday passed a law reducing the corporate tax rate for manufacturing companies to 12.5% from 25% and introducing incentives to repatriate assets held abroad. The legislation also extends a 100% corporate tax exemption on financial services export income at the Istanbul Financial Center until 2047. Assets brought into Turkey under the repatriation scheme will be taxed at 5%, with no tax due if held for five years in certain financial instruments.
Turkey's parliament on Wednesday passed a law reducing the corporate tax rate for manufacturing companies to 12.5% from 25% and introducing incentives to repatriate assets held abroad, according to the legislation.
The law, approved on May 21, 2026, replaces an initial proposal that had envisaged a 9% rate for manufacturing exporters and 14% for other exporters.
The legislation includes a scheme allowing money, gold, foreign exchange and securities held abroad to be brought into Turkey until July 31, 2027. Assets brought in under the scheme will be taxed at 5%, but no tax will apply if the assets are held for five years in certain financial instruments.
The law extends a 100% corporate tax exemption on financial services export income at the Istanbul Financial Center (IFC), a hub for banks and financial companies in central Istanbul, until 2047.
The law also grants a 20-year income tax exemption on foreign-sourced income for individuals relocating to Turkey.
The measure follows a May 19 decision by Turkey to reduce withholding tax on nuclear plant construction to 1%.