A package of tax reform measures was reportedly submitted in the Turkish parliament on 1 October 2021. Some of the main measures for companies include:

• An increase in the notional interest deduction rate for capital increases from 50% of the deemed interest expense to 75% for cash contributions from abroad;
• The introduction of accelerated depreciation for newly acquired machines and equipment until 31 December 2023, include a reduction in the standard useful life by half, subject to certain conditions;
• An additional deduction for investments equal to 10% of the amount determined by applying the investment contribution rate to investment expenditure, based on an investment incentive certificate, subject to certain conditions;
• The introduction of new provisions in domestic law for the application of Mutual Agreement Procedures (MAP) under tax treaties including new rules on requesting and finalizing MAP, time limits for MAP if not specified in a treaty (3 years), tax adjustments follow the conclusion of MAP, and others;
• Changes to relax certain conditions for the 5% tax credit (discount) for compliant taxpayers, including that the credit may still be applied if the taxpayer is subject to a tax assessment for the relevant period as long as the additional tax assessed is less than 1% of the credit amount limit;
• A change in the corporate income tax return deadline to the 25th of the third month after the close of the fiscal year, or the end of March if following the calendar year; and
• A change in the quarterly advance tax declaration return requirements so that the requirements apply for the first three quarters and no advance declaration is required for the fourth quarter.

Certain measures are included for individuals as well:

• An income tax exemption for individual social media content producers and app developers provided their income does not exceed the upper threshold of the 35% rate bracket (currently TRY 650,000), with such income instead subject to a 15% withholding tax by the Turkish bank in which the income is deposited (rate may be reduced by presidential decision); and
• A change in the individual income tax return deadline to 25 February following the close of the year, with payment due in two equal installments in February and June.

The measures are to generally apply from 1 January 2022. Additional details will be published once available.