Finance Minister Mehmet Şimşek has announced a new incentive regulation aimed at encouraging foreign currency inflows into Turkey. The regulation is part of the government’s efforts to stabilize the lira, rein in inflation, and restore investor confidence under the leadership.
According to the regulation, the tax reduction and exemption rates applied to some activities of income and corporate taxpayers abroad will be increased, provided that the earnings are brought into Turkey, said Şimşek.
The minister added that they would soon submit a proposal to the parliament, encompassing the mentioned regulation.
Highlighting the prioritization of certain aspects of the initiative, Şimşek remarked, “To encourage the inflow of foreign currency into our country, we will increase the tax reduction and exemption rates applied to the activities of income and corporate tax payers abroad, on the condition that the earnings are brought into the country.
“For the support of exports, we will apply a 5-point corporate tax reduction to the gains related to the activities of manufacturing and supplying exporters.”
“We are raising the 50% profit exemption provided for income obtained from services offered abroad, such as architecture, engineering, software, design, data processing, call services, education, and health activities, to 80% on the condition that the earnings are brought to Turkey,” Şimşek further said. “Thus, we are reducing the tax burden for these gains to 5% for corporate taxpayers.”
Şimşek also expressed that income and corporate taxpayers would be exempted from 50% of these gains, provided that the entire profit from dividends obtained abroad is brought into Turkey.