Call Center Tax Incentives in Turkey: How International BPO and Customer Support Companies Can Reduce Corporate Tax to Near Zero in 2026
Meta Title: Turkey Call Center Tax Incentives 2026 | 100% Tax Deduction for Exported Services Meta Description: Discover how foreign-owned call centers and BPO companies in Turkey can benefit from a 100% corporate tax deduction on qualifying international customer support services. Suggested URL Slug: /turkey-call-center-tax-incentives
Why Global Call Centers Are Expanding to Turkey
Turkey is becoming one of the most attractive jurisdictions for international call center and business process outsourcing (BPO) companies.
The country offers:
Highly educated and multilingual talent
Competitive labor costs
Strategic time zone advantages
Modern telecommunications infrastructure
Significant tax incentives for exported services
For foreign-owned companies providing customer support to overseas clients, the most compelling advantage is a 100% deduction of qualifying service export profits under Turkish tax law.
In practical terms, this means that a properly structured call center operation in Turkey may pay little to no corporate income tax on income generated from foreign clients.
Executive Summary
International call center and BPO companies operating in Turkey may benefit from:
100% corporate tax deduction on qualifying service export income
0% VAT (KDV) on exported customer support services
Access to a skilled workforce at competitive cost
Strategic proximity to Europe, the Middle East, and Africa
Potential financing and government support opportunities
This incentive applies to customer support, help desk, technical assistance, and contact center services rendered from Turkey to non-resident customers.
Legal Basis for the Tax Incentive
The incentive is governed by:
Article 10/ğ of the Turkish Corporate Income Tax Law
Article 89/13 of the Turkish Income Tax Law
Presidential Decision No. 11257, published in the Official Gazette on 30 April 2026
As of 2026, the deduction rate has increased from 80% to 100%.
This legislative amendment effectively exempts qualifying profits from Turkish income or corporate tax.
How the Incentive Works
If your Turkish company provides eligible services to clients located abroad, and those services are utilized outside Turkey, the entire related profit may be deducted from the corporate tax base.
Taxable\ Profit = Qualifying\ Export\ Profit - 100% \times Qualifying\ Export\ Profit = 0
Example
A Turkish limited company earns:
USD 500,000 annual revenue from overseas customer support contracts
USD 250,000 operating expenses
USD 250,000 accounting profit
Under the 100% deduction regime:
Deductible amount: USD 250,000
Taxable profit: USD 0
Corporate tax payable: USD 0 (subject to technical adjustments and non-qualifying items)
Does the Incentive Apply to Call Centers?
Yes.
Customer support and call center services are expressly recognized among eligible service categories.
Typical qualifying activities include:
Whether your clients are located in United Kingdom, Germany, United States, Portugal or elsewhere, the tax treatment may be highly favorable if the statutory conditions are met.
Eligibility Conditions
To claim the deduction, all of the following criteria should generally be satisfied.
1. Service Provider Must Be Tax Resident in Turkey
The service must be rendered through a Turkish tax resident entity, typically a limited liability company.
2. Customer Must Be Non-Resident
The contracting client must be established outside Turkey.
Operations, personnel, and management should be located in Turkey.
4. Benefit Must Be Used Abroad
The economic benefit of the service must accrue to the foreign customer outside Turkey.
5. Revenue Must Be Collected
Amounts generally need to be collected to preserve the deduction.
6. Proper Documentation Must Be Maintained
Invoices, contracts, bank receipts, and accounting records should clearly support the exported service characterization.
VAT Treatment: 0% VAT on Exported Services
Qualifying services are generally treated as service exports and may be invoiced with 0% Turkish VAT.
This improves cash flow and avoids adding Turkish VAT to invoices issued to overseas clients.
Which Types of Companies Benefit Most?
The incentive is particularly attractive for:
International customer support providers
Outsourcing companies
SaaS support teams
E-commerce support centers
Technical help desks
Telemarketing companies
Medical scheduling centers
Travel support providers
Fintech support operations
Why Foreign Companies Set Up in Turkey
Global businesses choose Turkey for a combination of cost efficiency and tax optimization.
Cost Advantages
Turkey offers highly competitive compensation levels relative to Western Europe and North America.
Multilingual Workforce
Recruitment is available in English, German, French, Arabic, Russian, and many other languages.
Strategic Time Zone
Turkey provides convenient overlap with European, Gulf, and North American business hours.
Favorable Tax Rules
The 100% deduction can materially reduce the effective tax burden.
Illustrative Corporate Tax Comparison
| Jurisdiction |
Standard Corporate Tax Rate |
Effective Tax on Qualifying Export Profit |
| Turkey |
25% |
Potentially 0% |
| Portugal |
~21% |
Generally fully taxable |
| Poland |
19% |
Generally fully taxable |
| Romania |
16% |
Generally fully taxable |
| United Arab Emirates |
9% |
Depends on substance and rules |
Practical Example: European Call Center Expansion
A Portugal-based outsourcing company establishes a Turkish subsidiary to provide customer support and obtain local telecom infrastructure.
The Turkish entity:
Employs local customer support agents
Provides services exclusively to foreign group companies or overseas clients
Issues invoices to non-resident customers
Collects revenue through Turkish bank accounts
If all conditions are satisfied, qualifying profits may be fully deductible for corporate tax purposes.
Additional Considerations
Payroll Taxes and Social Security
The incentive does not eliminate:
Employee income tax withholding
Social security contributions
Monthly payroll compliance obligations
Dividend Withholding
Profit distributions to shareholders may trigger withholding tax, subject to treaty relief.
Transfer Pricing
Group companies must charge arm’s-length fees and maintain supporting documentation.
Permanent Establishment Risk
Structuring should ensure that contracts and operational arrangements align with both Turkish and foreign tax rules.
Typical setup steps include:
Tax planning and structuring analysis
Company incorporation
Tax registration
Bank account opening
E-invoice and e-signature setup
Payroll onboarding
Incentive documentation planning
In many cases, incorporation can be completed within a few business days once documents are ready.
Frequently Asked Questions
Can a Foreign-Owned Company Benefit?
Yes. There is no general requirement that shareholders be Turkish residents.
No. The incentive can apply to both related and unrelated foreign customers.
Is VAT Charged?
Qualifying exported services are generally invoiced at 0% VAT.
Do We Still File Tax Returns?
Yes. Compliance obligations continue even if taxable income is reduced to zero.
Can Technical Support and Live Chat Qualify?
Yes, provided the statutory conditions are met.
Funnel: Is Turkey the Right Jurisdiction for Your Call Center?
Turkey is particularly suitable if your business:
Serves customers located outside Turkey
Requires multilingual support staff
Seeks lower operating costs
Wants to optimize corporate taxation
Needs rapid incorporation and ongoing compliance support
If these criteria match your expansion strategy, Turkey can provide a highly efficient operational and tax platform.
Our Services for International Call Centers
At OZM Consultancy, we assist international BPO and contact center companies with:
Company formation in Turkey
Tax incentive eligibility analysis
Corporate tax and VAT compliance
Payroll and social security registration
Transfer pricing support
Residence permit coordination
Ongoing accounting and reporting
Our clients include remote-first businesses, outsourcing providers, SaaS companies, and foreign investors establishing operations in Turkey.
Reach us
Planning to Open a Call Center in Turkey?
If your company provides customer support, technical help desk, or BPO services to international clients, Turkey may offer one of the most compelling tax incentive regimes currently available.
Contact us to assess:
Whether your services qualify
Expected effective tax rate
Company setup requirements
Monthly compliance obligations
📩 Email: 🌐 Website: www.ozmconsultancy.com
info@ozmconsultancy.com
We provide premium English-speaking tax and corporate advisory services for international businesses entering the Turkish market.
