Turkey published Law No. 7351 in the Official Gazette on 22 January 2022, which contains various measures including certain measures proposed earlier by Turkish President Recep Tayyip Erdoğan to address the devaluation of the Turkish lira and to support business and investment.

One of the main measures is the amendment of Article 32 of the Corporate Income Tax law to provide a 1% reduction (discount) in the corporate tax rate on:

• Profits derived by exporting companies exclusively from export operations; and
• Profits derived by companies holding an industrial registration certificate exclusively from production activities (no additional discount provided for profits corresponding to exports - i.e., no 2% discount for production that is exported).

It is further provided that the 1% discounts are applied after the application of other rate discounts provided within the scope of Article 32, which includes the 2% discount for listed companies.

Another important measure provides a corporate tax exemption on dividend income obtained from mutual funds, other than venture capital investment funds/trusts (which were already exempt). However, the exemption for mutual funds will not apply where a fund's assets are comprised of foreign currency and/or gold and other precious metals, or capital market instruments based on such assets.

These measures apply from 1 January 2022 or from a special non-calendar accounting period beginning during the 2022 calendar year.