Turkey Improves Participation Exemption for Foreign Earnings and Deduction for Service Exports

Turkey's Revenue Administration has announced the publication of Presidential Decision No. 11257 in the Official Gazette on 30 April 2026, which improves the participation exemption for foreign earnings (dividends) and the deduction (exemption) rate for service exports.

The participation exemption improvements concern the 50% exemption on dividend income received from a foreign company when holding at least 50% of the paid-up capital of the foreign company, as long as the dividend income i…