Turkey Cuts Manufacturing Corporate Tax to 12.5% as It Courts Overseas Assets

4 articles · Updated · Reuters · May 21

Turkey's parliament approved a law slashing the corporate tax rate for manufacturing companies to 12.5% from 25%, a broad incentive package aimed at industry and capital inflows.
The legislation lets money, gold, foreign exchange and securities held abroad be brought back to Turkey until July 31, 2027, with a 5% tax unless the assets stay five years in specified financial instruments.
It also extends a 100% corporate tax exemption on financial-services export income at the Istanbul Financial Centre through 2047 and offers a 20-year income-tax break on foreign-sourced income for people relocating to Turkey.
The final law was less aggressive than an initial proposal that had envisioned 9% tax for manufacturing exporters and 14% for other exporters, signaling a broader but more moderate tax cut.

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