New Legislation Introduces Tax Incentives and Investment Reforms
Law No. 7582 introduces significant tax incentives and administrative adjustments to bolster foreign investment, support "qualified service centers," and encourage the repatriation of assets. Key provisions include a 20-year income tax exemption for qualifying foreign-sourced income for individuals relocating to Turkey, substantial corporate tax deductions for qualified service centers and specific offshore trading activities, and a temporary asset amnesty program allowing for the declaration of foreign and domestic assets with reduced, sliding-scale tax rates. The law also extends fiscal incentives for entities operating within the Istanbul Finance Center through 2047, adjusts income tax withholding thresholds for qualified personnel, and provides various regulatory exemptions for technology-based startups to facilitate capital increases and reduce operational costs.