Turkey published Law No. 7394 in the Official Gazette on 15 April 2022. Among other things, the Law provides for an increase in the corporate tax rate to 25% on financial sector companies, including banks, financial leasing companies, asset management firms, and insurance companies. Turkey's standard corporate tax rate is 20% but was temporarily increased to 25% in 2021 and 23% in 2022. As provided by Law No. 7394, the 25% tax rate for financial sector companies applies for the 2022 tax period and applies for tax returns that must be submitted as of 1 July 2022.
Other important measures of Law No. 7394 include the introduction of certain VAT exemptions, including:
These VAT exemptions are generally effective from 15 April 2022. For more information, click the following link for a release from Turkey's Revenue Administration on Law No. 7394.