It is mandatory that the exemptions, deductions, and practices listed below and included in income and corporate tax returns be certified by Sworn-in Certified Public Accountants.
Sworn-in CPA certification reports must be submitted electronically via the Digital Tax Office within two months following the end of filling period of annual tax returns.
Taxpayers having a full certification agreement with a Sworn-in Certified Public Accountant in relation to their annual tax returns are not required to submit an additional report for the relevant exemptions, deductions, and practices, provided that these are incorporated in the full certification report.
For income tax taxpayers:
|
Exemption/Deduction/ Practice |
Relevant Legislation |
Threshold |
Total Threshold |
|
|
1 |
Exemption in Industrial Property Rights |
5520; 5/B |
500.000 |
1.000.000 |
|
2 |
Exemption on Income Derived from the Operation and Transfer of Vessels Registered in the Turkish International Ship Registry |
4490 |
500.000 |
|
|
3 |
Exemption on Income Earned in Free Zones |
3218 |
500.000 |
|
|
4 |
Exemption on Income Earned in Technology Development Zones |
4691 |
500.000 |
|
|
5 |
Income Deduction for Software, Engineering, Education, and Health Services Rendered Abroad |
193; 89/13 |
500.000 |
|
|
6 |
Reduced Personal Income Tax Application |
5520; 32/A |
No Threshold |
|
|
7 |
R&D and Design Deductions |
5746 |
500.000 |
|
|
8 |
Investment Allowance Exemption |
193 |
500.000 |
|
|
9 |
“Other Deductions” under the section titled “Deductions from Income to be Declared” and “Other Exemptions” under the section titled “Notification Regarding Exempted Income” of the Annual Personal Income Tax Return |
193 and the other laws |
1.000.000 |
For corporate tax taxpayers:
|
Exemption/Deduction/ Practice |
Relevant Legislation |
Threshold |
Total Threshold |
|
|
1 |
Exemption on Foreign Subsidiary Earnings |
5520; 5/1-b |
500.000 |
1.000.000 |
|
2 |
Exemption on Capital Gains from the Sale of Foreign Subsidiary Shares |
5520; 5/1-c |
500.000 |
|
|
3 |
Exemption on Share Premium Gains |
5520; 5/1-ç |
500.000 |
|
|
4 |
Income Exemption for Real Estate Investment Funds or Trusts (Excluding the income of those established for purposes other than operating a portfolio consisting of real estate, real estate projects, and real estate-based rights by virtue of their main field of activity) |
5520; 5/1-d4 |
500.000 |
|
|
5 |
Exemption on Capital Gains from the Sale of Immovable Properties, Participation Shares, Founder's Shares, Usufruct Shares, Pre-emptive Rights, and Venture Capital Investment Fund Participation Shares |
5520; 5/1-e and provisional 16 |
500.000 |
|
|
6 |
Exemption on Income from Construction, Repair, Assembly, and Technical Services Rendered Abroad |
5520; 5/1-h |
500.000 |
|
|
7 |
Exemption on Industrial Property Rights |
5520; 5/B |
500.000 |
|
|
8 |
Exemption on Income Derived from the Operation and Transfer of Vessels Registered in the Turkish International Ship Registry |
4490 |
500.000 |
|
|
9 |
Exemption on Income Derived in Free Zones |
3218 |
500.000 |
|
|
10 |
Exemption on Income Derived in Technology Development Zones |
4691 |
500.000 |
|
|
11 |
Exemption on Income Derived by Research Infrastructures from R&D and Innovation Activities |
6550 |
500.000 |
|
|
12 |
R&D Deduction |
5520; repealed 10/1-a |
500.000 |
|
|
13 |
Income Deduction for Software, Engineering, Education, and Health Services Rendered Abroad |
5520; 10/1-ğ |
500.000 |
|
|
14 |
Interest Deduction on Cash Capital Increase |
5520; 10/1-ı |
500.000 |
|
|
15 |
Reduced Application of the Corporate Income Tax Rate |
5520; 32/6-7-8 |
200.000 |
|
|
16 |
Reduced Corporate Income Tax Application |
5520; 32/A |
No Threshold |
|
|
17 |
Local and Global Minimum Top-up Corporate Income Tax Application |
5520; additional 1-13 and provisional 17 |
No Threshold |
|
|
18 |
R&D and Design Deductions |
5746 |
500.000 |
|
|
19 |
Techno-enterprise Capital Support Deduction |
5746 |
500.000 |
|
|
20 |
Technopark Capital Support Deduction |
4691 |
500.000 |
|
|
21 |
Investment Allowance Exemption |
193 |
500.000 |
|
|
22 |
The “ Other Deductions and Exemptions” line under the “Exemptions and Deductions Deductible Even in Case of Loss” section and the “Other Exemptions” line under the “Exemptions and Deductions Deductible Only in the Presence of Income” section included in the Annual Corporate Income Tax Return |
5520 and other laws |
1.000.000 |
|
|