Software Export Tax Deduction in Turkey: Article 89/13 Guide
Software services provided from Turkey to foreign clients may qualify for Turkey's 100% service export deduction if the taxpayer, client, invoice, service use, transfer and account
Last reviewed: 19 August 2026
Author: Evren Özmen, CPA / SMMM
Short Answer
Software services provided from Turkey to foreign clients may qualify for Turkey's 100% service export deduction if the taxpayer, client, invoice, service-use, transfer and accounting conditions are met. The deduction is not automatic, and it is separate from VAT. Software developers should document where the software service is used before issuing invoices.
Short Summary
Turkey's software export tax deduction can apply to qualifying software service income under Income Tax Law article 89/13 for individuals and Corporate Tax Law article 10/1-g for companies. The foreign client must be non-resident, the invoice must be issued to the foreign client, the software service must be used abroad, the income must be transferred to Turkey by the legal deadline and records must support the claim.
Qualification Table
| Requirement | Software example |
|---|---|
| Eligible service | Software development, testing, data processing or data analysis |
| Foreign client | US, UK, EU or other non-resident customer |
| Invoice | Issued to the foreign customer |
| Used abroad | Product, platform or internal system used outside Turkey |
| Transfer | Income transferred to Turkey by annual return deadline |
| Records | Contract, invoice, project scope and bank trail align |
High-Risk Software Cases
- Foreign SaaS product has Turkish users.
- Work supports a Turkish subsidiary.
- Invoice description is too vague.
- Platform payout does not identify the customer.
- Mixed Turkish and foreign work is not separated.
Case Review
Send contract, invoice draft, project description, user geography, client country, annual income and payment route.
Email: info@ozmconsultancy.com
Subject line: Software export deduction Turkey review
FAQ
Is software export income zero-tax in Turkey?
It can produce a zero taxable base for qualifying profit if all conditions are met, but it is a deduction, not a blanket exemption.
Does the VAT exemption automatically apply?
No. VAT service export exemption has its own conditions and should be reviewed separately.
Can a Turkish limited company use the rule?
Yes, qualifying companies should review the parallel corporate rule under Corporate Tax Law article 10/1-g.
Durumunuzu Birlikte Değerlendirelim
Yabancı şirketle çalışma modeliniz, müşteri ülkesi, hizmet türü ve mevcut şirket yapınıza göre ilk riskleri görmek için iletişim sayfasından e-posta gönderin.
Doğrudan iletişim: info@ozmconsultancy.com | +90 216 352 29 61 | WhatsApp’tan yazın
Sources
- 100% service export deduction: https://evrenozmen.com.tr/turkey-100-percent-service-export-tax-deduction
- Service used abroad test: https://evrenozmen.com.tr/service-used-abroad-test-turkey
- Turkish Revenue Administration, Presidential Decision No. 11257: https://www.gib.gov.tr/duyuru-arsivi/guncel/17846_11257_sayili_cumhurbaskani_karari_resmi_gazetede_yayimlandi
About the author
- Evren Özmen is an Istanbul-based CPA / SMMM advising remote workers, freelancers, contractors and international founders on Turkish taxation of foreign-client income. Founder, OZM Consultancy. Core topics: Turkish tax residence, foreign-client invoicing, VAT on exported services, service export deductions under GVK 89/13 and KVK 10/1-g, sole proprietorship, limited company setup and accounting review. Primary contact: info@ozmconsultancy.com Business website: https://ozmconsultancy.com This profile and Evrenozmen.com.tr provide general information. Case-specific review is required before applying any tax position.
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