Decision on the Redetermination of Certain Rates Specified in Article 22 and Article 89 of the Income Tax Law No. 193 and Article 5 and Article 10 of the Corporate Tax Law No. 5520 (Decision No: 11257)

Decision No: 11257

The attached Decision on the redetermination of certain rates specified in Article 22 and Article 89 of the Income Tax Law No. 193 and Article 5 and Article 10 of the Corporate Tax Law No. 5520 has been enacted in accordance with the relevant provisions of the aforementioned Laws.

April 29, 2026 Recep Tayyip ERDOĞAN PRESIDENT

ANNEX TO THE PRESIDENTIAL DECISION DATED 29/4/2026 AND NO. 11257

ARTICLE 1- (1) The rate of ownership of paid-in capital specified in the fourth paragraph of Article 22 of the Income Tax Law No. 193 dated 31/12/1960 is determined to be at least 20%.

(2) The discount rate to be applied in accordance with the provision numbered (13) of the first paragraph of Article 89 of the same Law is determined to be 100%.

ARTICLE 2- (1) The exemption rate to be applied in accordance with the third paragraph of the provision (b) of the first paragraph of Article 5 of the Corporate Tax Law No. 5520 dated 13/6/2006 is determined to be 80% if at least 20% of the paid-in capital of the foreign participation is owned.

(2) The discount rate to be applied in accordance with the provision (ç) of the first paragraph of Article 10 of the same Law is determined to be 100%.

ARTICLE 3- (1) This Decision shall enter into force on the date of publication for the income and profits of the taxation periods starting from 1/1/2026.

ARTICLE 4- (1) The Minister of Treasury and Finance shall execute the provisions of this Decision.