Turkey has reportedly approved the law containing tax changes for 2021. One of the main measures of the law provides for the introduction of a 2% corporate tax rate reduction that would apply for five years for companies that list at least 20% of the shares on the Istanbul Stock exchange in an initial public offering. Certain company types are excluded, however, including:
- Banks;
- Leasing companies;
- Factoring companies;
- Financing companies;
- Payment and electronic money institutions;
- Authorized foreign exchange institutions;
- Asset management companies;
- Capital market institutions;
- Insurance and reinsurance companies; and
- Pension companies.
Another key measure in the original draft was not approved in the final law, which is the authorization for the Turkish president to reduce the standard corporate tax rate by up to 5 percentage points (as low as 15%). Further details of the law will be published once available.
Note, this article as been updated to reflect a 2% rate reduction instead of a 2% reduced rate for listed companies as originally reported.