Turkey’s Tax Deduction for Export of Services in 2026
Turkey’s 100% Tax Deduction for Export of Services in 2026
Complete Q&A Guide for Software, SaaS, Mobile Apps, Accounting, Engineering, and Global Service Businesses
Keywords: Turkey export of services tax deduction, 100% corporate tax deduction Turkey, software tax incentive Turkey, SaaS tax incentive Turkey, mobile app company tax benefits Turkey, GVK 89/13, KVK 10/ğ, Turkish service export incentive, accounting services tax incentive Turkey
Executive Summary
Turkey offers one of the most powerful tax incentives in Europe for internationally focused service businesses.
If your company in Turkey provides eligible services—such as software development, SaaS, mobile application publishing, engineering, design, accounting, data analytics, or call center services—to foreign customers, and those services are used exclusively outside Turkey, 100% of the qualifying profit may be deducted from your corporate or income tax base.
In practical terms, this means that the profit generated from eligible exported services can be taxed at 0% corporate income tax, provided that all statutory conditions are satisfied.
Quick Answer (Featured Snippet)
Can a Turkish company pay zero corporate tax on software and SaaS income from foreign customers?
Yes. Under Article 10/ğ of the Corporate Tax Law and Article 89/13 of the Income Tax Law, qualifying service-export income—including software, engineering, accounting, design, data processing, and similar services—may benefit from a 100% tax deduction, effectively reducing the tax burden on eligible profits to zero if all legal conditions are met.
Table of Contents
What Is the 100% Export of Services Deduction?
Which Businesses Qualify?
Legal Basis
Eligibility Conditions
Which Services Are Covered?
Which Income Does Not Qualify?
Real-World Examples
Accounting Requirements
Foreign Currency Transfer Requirement
Common Mistakes
Frequently Asked Questions
Why Turkey Is Becoming a Global Tax Hub
1. What Is the 100% Export of Services Deduction?
Turkey allows qualifying businesses to deduct 100% of profits derived from certain services provided to non-residents.
This incentive applies to both:
Sole proprietorships
Limited companies
Joint stock companies
The deduction is taken on the annual tax return, meaning that the qualifying profit is effectively removed from the taxable base.
2. What Does “100% Deduction” Mean?
Assume:
Revenue from foreign SaaS customers: USD 500,000
Related expenses: USD 200,000
Net profit: USD 300,000
If all requirements are met:
Taxable profit from this activity: USD 0
Corporate tax due on this profit: USD 0
This is economically equivalent to a 0% corporate tax rate on qualifying exported service income.
3. Legal Basis
The incentive is governed by:
Income Tax Law Article 89/13
Corporate Tax Law Article 10/ğ
Communiqué No. 1 on Corporate Tax
Law No. 7491
Presidential Decree No. 11257 (published on 30 April 2026)
4. Which Businesses Can Benefit?
Eligible structures include:
Apple Inc. app developers
Google LLC app developers
SaaS companies
Software developers
Gaming studios
Data analytics firms
Engineering firms
Design agencies
Accounting and bookkeeping firms
Call centers
Product testing laboratories
Certification companies
5. Which Services Are Covered?
The legislation specifically includes:
Software development
Mobile application publishing
SaaS subscriptions
Architecture
Engineering
Design
Medical reporting
Bookkeeping and accounting
Call center services
Product testing
Certification
Data storage
Data processing
Data analysis
Approved vocational training
6. What Are the Main Conditions?
To qualify, all of the following conditions must be satisfied.
6.1 Customer Must Be Non-Resident
The customer must be:
A foreign individual, or
A company whose legal and business headquarters are outside Turkey.
6.2 Service Must Be Performed in Turkey
The work must be carried out from Turkey.
6.3 Service Must Be Used Exclusively Abroad
The benefit of the service must be enjoyed outside Turkey.
6.4 Invoice Must Be Issued to the Foreign Customer
The invoice must be addressed directly to the non-resident client.
6.5 Full Revenue Must Be Transferred to Turkey
The entire qualifying income must be transferred to Turkey by the filing deadline for the annual tax return.
6.6 Profit Must Be Positive
If the activity results in a loss, no deduction is available.
6.7 Separate Accounting Records Must Be Maintained
Qualifying revenue and expenses must be tracked separately.
7. What Does “Used Abroad” Mean?
The foreign customer must consume the service outside Turkey.
Qualifying Example
A Turkish developer builds a subscription app for a U.S. company, and the application is marketed only outside Turkey.
Non-Qualifying Example
A Turkish software firm develops a CRM for the Turkish branch of a foreign company for use in Istanbul.
8. Can Mobile App Revenue Qualify?
Yes.
Revenue may qualify when:
The Turkish company owns the app,
Users are primarily outside Turkey,
Platform payments are received from foreign entities,
Revenue is transferred to Turkey.
Examples include revenue received through:
9. Can SaaS Subscription Revenue Qualify?
Yes.
Typical qualifying SaaS income includes:
Monthly subscriptions
Enterprise licenses
API fees
White-label software arrangements
10. Can Accounting and Bookkeeping Services Qualify?
Yes.
The statute explicitly includes bookkeeping and accounting services provided to foreign clients.
Examples:
U.S. companies outsourcing bookkeeping to Turkey
UK startups receiving management reporting
E-commerce businesses outsourcing reconciliations
11. Can Call Center Services Qualify?
Yes.
Turkey is particularly attractive for multilingual call centers serving overseas customers.
12. Can Freelancers Benefit?
Yes.
A sole proprietor providing eligible services to foreign clients can claim the same 100% deduction under Article 89/13.
13. Which Income Does Not Qualify?
The following are not covered:
Interest income
Foreign exchange gains on idle cash
Capital gains from asset sales
Rental income
Domestic Turkish sales
Advisory or intermediary services that do not constitute the listed core services
14. Do Consulting Services Qualify?
Pure consulting is not automatically covered unless it falls within an expressly listed category (for example, software, engineering, accounting, or approved vocational training).
15. Must the Entire Revenue Be Transferred to Turkey?
Yes.
If even part of the qualifying revenue is not transferred to Turkey by the tax return filing deadline, the deduction is lost entirely for that income.
16. Can Revenue Be Received Through Wise or Payoneer?
Yes, but:
Supporting records should clearly show the foreign source,
Funds should be transferred to a Turkish bank account before the filing deadline,
Documentation must be retained.
Relevant platforms:
17. How Should Accounting Be Structured?
Businesses should maintain separate ledgers for:
Qualifying foreign revenue
Direct costs
Shared overhead allocations
Depreciation allocations
Where costs cannot be directly identified, they should be apportioned based on revenue ratios or usage.
18. What Happens If the Activity Generates a Loss?
No deduction is available in a loss year.
Unused deduction amounts cannot be carried forward.
19. Example: Mobile App Company
A Turkish app publisher earns:
Subscription revenue: USD 1,000,000
Advertising revenue: USD 300,000
Total expenses: USD 500,000
Net profit: USD 800,000
If all conditions are met, the full USD 800,000 may be deducted, resulting in no corporate tax on that qualifying profit.
20. Example: Accounting Firm
A Turkish bookkeeping company serves clients in the U.S. and UK.
Revenue: USD 200,000
Expenses: USD 80,000
Profit: USD 120,000
The USD 120,000 may be fully deductible.
21. Common Compliance Mistakes
Invoicing a Turkish affiliate rather than the foreign principal
Missing the transfer deadline
Mixing domestic and foreign income without separate records
Claiming non-qualifying interest income
Insufficient documentation to prove foreign use
22. Frequently Asked Questions
Is this a tax exemption?
Technically, it is a deduction from taxable income, but the economic result is often equivalent to a full exemption.
Does VAT still apply?
Qualifying exported services are generally zero-rated for VAT under KDV Law Article 11/1-a, subject to separate conditions.
Can foreign-owned companies benefit?
Yes. Ownership nationality is not relevant.
Is HIB membership required?
Not for the income tax deduction itself, though it may be necessary for separate Ministry of Trade cash-support programs.
Can both a sole proprietor and a corporation use the incentive?
Yes.
23. Why This Matters Internationally
Compared with many jurisdictions:
Corporate tax on qualifying profit can be effectively 0%
Labor costs remain competitive
Turkey offers a large technical talent pool
Europe, MENA, and Asia are accessible from one location
This makes Turkey increasingly attractive for:
SaaS founders
Mobile app publishers
Accounting outsourcing firms
Engineering hubs
Global shared service centers
24. Who Should Consider Turkey?
Turkey is particularly attractive for:
Foreign entrepreneurs launching global software businesses
App developers monetizing worldwide subscriptions
Accounting firms serving overseas clients
Call centers supporting international markets
Digital nomads seeking tax-efficient structures
25. Final Thoughts
Turkey’s 100% export-of-services deduction is one of the most compelling international tax incentives currently available. Properly structured, it can reduce the effective tax rate on qualifying software, SaaS, accounting, engineering, and similar service income to zero.
For globally oriented businesses, Turkey offers a combination of tax efficiency, strategic location, and operational scale that is increasingly difficult to match elsewhere.
Need Professional Assistance?
OZM Consultancy assists foreign-owned companies, SaaS founders, mobile app publishers, and service exporters with:
Company formation in Turkey
Tax registration and bookkeeping
Export-of-services tax analysis
HIB and DYS applications
Incentive and reimbursement filings
For tailored advice, contact: info@ozmconsultancy.com
