Turkey's Revenue Administration has announced the publication of Law No. 7338 in the Official Gazette on 26 October 2021, which includes measures for the recently proposed tax reform package. Some of the main measures 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, which includes 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 following 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 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;
• An income tax exemption for individual social media content producers and app developers provided their income does not exceed the upper threshold of the fourth tax 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);
• A change in the individual income tax return deadlines so that only the 25 March deadline applies, with payment due in two equal installments in March and July; and
• A change in the effective date of the 2% accommodations tax introduced as part of Law No. 7194 to 1 January 2023 (originally to apply from 1 April 2020 and previously deferred to 1 January 2022).

Note, changes in the corporate income tax return deadline were originally proposed but were removed in the final law as published. In addition, it was originally proposed to change the standard deadline to 25 February for individual income tax, which was the deadline for individual small business income. This February deadline is removed, as are the payment deadlines in February and June for returns due in February.

The measures of Law No. 7338 generally apply from 1 January 2022, although certain other effective dates are provided, including that increase in the notional interest deduction rate for capital increases applies for capital increases made from 26 October 2021.