Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 23, 2023

Türkiye introduces additional tax for 2022

  • A recently enacted Turkish law adds a tax on corporations for 2022 to help address damage caused by recent earthquakes.

  • Taxpayers affected by the new law will need to become familiar with how it applies to their particular situations.

The Turkish Parliament recently enacted Law No. 7440 (Law), which was then published in the Official Gazette and entered into force on 12 March 2023. Based on a bill entitiled “the Restructuring of Certain Receivables and the Amendment of Some Laws,” the Law includes new taxes for 2022 to help address the damage that recent earthquakes caused in the Türkiye’s southeastern region beginning on 6 February 2023.

The Law adds a tax for corporations that benefitted from certain exemptions and deductions to be claimed in their corporate tax returns for 2022.

Generally, corporate taxpayers will declare a 10% additional tax on their 2022 corporate income tax return, regardless of their corporation tax base, on (1) the amounts they claimed as deductions and exemptions based on the certain provisions of Corporation Tax Code (CTC) and other laws and (2) the tax bases to which a discounted corporation tax rate applied within the scope of Article 32/A of the CTC. In some cases, the additional tax will be 5%, rather than 10%. For example, a 5% rate will apply for exemptions related to participation earnings, including foreign participations.

This new tax will be paid in two installments, with the first installment due in 30 April 2023 (which will be extended to 2 May 2023 due to holidays) and second installment due in August 2023.

The additional tax liability does not apply to certain exemptions and deductions, including:

  • The return exemption for cooperatives (Article 5/1-i of the CTC)

  • Earnings from Sale-Lease-Repurchase transactions (Article 5/1-j of CTC)

  • Earnings from the sale of assets and rights for the purpose of issuing a leasing certificate (Article 5/1-k of CTC)

  • Earnings related to transitioning foreign exchange deposits into Turkish lira deposits

  • Sponsorship expenditures

  • Donations as per article 10/1-c, 10/1-ç, 10/1-d of CTC

  • Donations as per the campaigns initiated by the President (Article 10/1-e of CTC)

  • Donations in cash to the Turkish Red Crescent (KIZILAY) and Green Crescent (YESILAY) Associations

  • Capital investment funds, up to 10 % of the declared income per to the Article 325/A of Tax Procedure Code (Article 10/1-g of the CTC)

  • Investment Allowances as per temporary article 61 of the Income Tax Code

  • Income derived by micro and small enterprises, defined in article 407 of Presidential Decree dated 10 July 2018, from technology development zones and research and development and design centers

  • Other donations regulated in the relevant legislations

Exemptions and deductions for which the additional tax will apply include:

  • Participation income (Article 5/1-a of CTC)

  • Participation income obtained from overseas (Article 5/1-b of CTC)

  • Capital gains derived through the disposal of foreign company shares (Article 5/1-c of CTC)

  • Income on share premiums (Article 5/1-ç of CTC)

  • Capital gains on sales of immovable assets and subsidiary shares (Article 5/1-e, f of CTC)

  • Income that companies obtain through their international subsidiaries or their permanent representatives (Article 5/1-g of CTC)

  • Income from construction, repair, assembly work, and technical services performed abroad (Article 5/1-h of CTC)

  • Income for the operation of preschool education, primary education, special education, secondary education private schools, private nursery and day care houses and rehabilitation centers (Article 5/1-i of CTC)

  • Half (50%) of the income obtained from the services provided to people and institutions resident abroad in Turkey or benefited abroad (Article 10/1-g of CTC)

  • Income exemption given to the institutions in Istanbul Finance Center Region (Article 5/1-i of CTC)

  • Income derived from industrial property rights (Article 5/1-B of CTC)

  • Discounted corporate tax base (Article 32/A of CTC)

  • Notional interest deduction resulting from capital increase (Article 10/1-i of CTC)

  • Deduction on research and development/design expenditures calculated according to Law No. 5746

  • Income in Free Trade Zones

  • Income in Technology Development Zones

  • Other deductions and exemptions that are not exempted in Law No. 7440

A 5% additional tax will be calculated on the exempted income obtained from abroad with a 15% tax burden and the participation exemption in Article 5/1-a of the CTC mentioned above.

A 10% additional tax will be calculated and paid on other exemptions and deductions.


For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

Kuzey Yeminli Mali Müsavirlik A.S., Ankara

Ernst & Young LLP (United States), Turkish Tax Desk, New York


The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more