Turkiye enacts and publishes amendments to various tax laws for corporations and individuals, including Pillar Two legislation

Law No. 7524 (the Law) was published in the Official Gazette dated 02 August 2024, as adopted by the General Assembly of the Turkish Parliament, with minor amendments. The new Law broadens the scope of certain exemptions and deductions that will not be taken into account for the calculation of Turkish domestic minimum tax (yurt içi asgari kurumlar vergisi).

Further, the Law implements several new regulations, most notably on the minimum tax. Turkiye's alignment with BEPS 2.0 and Pillar Two reflects its commitment to global tax practices. These new regulations should be analyzed carefully on a company-specific basis to ensure compliance and optimize tax strategy.

Background

On 16 July 2024, the Turkish government presented a draft bill (Bill) proposing amendments to various tax laws and new applications, such as global and domestic minimum taxes. (For details, see EY Global Tax Alerts, Turkiye proposes draft bill amending tax laws for corporations and individuals, dated 17 July 2024, and Turkiye proposes to introduce Pillar Two rules to be effective from 2024, dated 17 July 2024)

On 28 July 2024, discussions on the Bill were finalized and The General Assembly of the Turkish Parliament enacted Law No. 7524.

Enforcement dates

The Law entered into force upon its publication in the Official Gazette; however, the enforcement dates for each Article may differ.