Law No. 7524 amending tax laws (2024): domestic minimum corporate tax and global minimum tax
Adopted by the Grand National Assembly on 28 July 2024 and published in the Official Gazette on 2 August 2024, Law No. 7524 is a 61-article omnibus package, presented by its AK Party sponsors as a step towards a fairer tax system with a larger share of direct taxes. Its centrepiece is a domestic minimum corporate tax: from 2025 profits, corporate tax may not be lower than 10% of profit before deductions and exemptions. It also brings the OECD global minimum tax into Turkish law: multinational groups with consolidated revenue above 750 million euros pay a top-up tax so that their profits are taxed at 15% at least, from the 2024 financial year. The law also raises the corporate tax rate on build-operate-transfer and public-private partnership companies to 30%, limits several exemptions, steps up penalties and controls against the informal economy, and raises the minimum pension from 10,000 to 12,500 lira.
Key points
Domestic minimum corporate tax, share of profit before deductions
10%
from 2025 profits · Announced
Law No. 7524, article 36[1]
Global minimum effective tax rate (groups above 750 million euros)
15%
from the 2024 financial year · Announced
Law No. 7524, articles 37 and 42[1]
Pensioners receiving the raised minimum pension of 12,500 lira
3,700,000
from July 2024 · Estimate
According to the bill’s first signatory and the officials heard by the Plan and Budget Committee[5][7]
Additional cost for the 2024 budget: 33.2 billion lira, according to the same sources.
Budget balance
-2.9% GDP
2025
- Status: In force since August 2, 2024. Most articles apply from publication; staggered dates for others: the global minimum tax applies to 2024 profits, the domestic minimum tax to 2025 profits, the five-year rule on carried-forward VAT from 1 January 2030.[1][2]
- Next milestone: January 1, 2030, VAT not offset within five calendar years leaves the carried-forward balance
At a glance
Reference text
Vergi Kanunları ile Bazı Kanunlarda ve 375 Sayılı Kanun Hükmünde Kararnamede Değişiklik Yapılmasına Dair Kanun (Law amending tax laws, certain other laws and Decree-Law No. 375)[1][2][4]
No. Kanun No. 7524 (Resmî Gazete No. 32620, 2 August 2024) · July 28, 2024
Read the text ↗Carried by
- Nilgün Ök[4][7]Member of Parliament for Denizli (AK Party), first signatory of bill No. 2/2290 · 2024 · Initiator
- Ersan Aksu[4][5]Member of Parliament for Samsun (AK Party), first signatory of bill No. 2/2290 · 2024 · Initiator
- Mehmet Muş[4][5][9]Chair of the Plan and Budget Committee (AK Party, Samsun), lead committee that amended and adopted the bill · 2024 · Amendment
Implementation
- Revenue Administration (Gelir İdaresi Başkanlığı), Ministry of Treasury and Finance: implementing rules, returns and collection of the minimum taxes
- Ministry of Treasury and Finance (Hazine ve Maliye Bakanlığı): empowered to set the procedures of the domestic and global minimum taxes
- President of the Republic: may lower the 10% domestic minimum rate to zero or double it by sector, and designates the jurisdictions with qualified minimum taxes
- Social Security Institution (SGK): pays the minimum pension of 12,500 lira
Stated objective
In line with the 2024-2026 Medium-Term Programme: build an effective, simple and fairer tax system, raise the share of direct taxes, finance public spending with lasting resources and remove ineffective exemptions. The bill names five aims: tax security and the fight against the informal economy, tax fairness and a larger share of direct taxes, better compliance, the removal or reshaping of some exemptions, and stronger penalties and collection. Because deductions and exemptions keep the corporate tax actually paid far below the 25% rate, a minimum tax tied to declared profit is introduced; the global minimum tax ensures that tax not levied in Türkiye on multinationals is not collected by other countries instead.[5][7]
According to the general justification of bill No. 2/2290 (AK Party signatories) and its first signatory in the General Assembly
Domestic minimum corporate tax
10%
from 2025 profits · Law No. 7524, article 36 (new article 32/C of the Corporate Tax Law)[1]
Share of corporate profit before deductions and exemptions; the President may lower it to zero or double it by sector.
Global minimum effective tax rate for large multinationals
15%
from the 2024 financial year · Law No. 7524, article 42 (additional article 6 of the Corporate Tax Law)[1]
Main measures
- Domestic minimum corporate tax: corporate tax may not be lower than 10% of profit before deductions and exemptions (commercial balance-sheet profit plus non-deductible expenses). Some items are still deducted first: participation income, shipping and free-zone earnings, technology-zone and R&D deductions; tax relief from investment incentive certificates obtained before the law is protected. New companies are exempt for their first three financial years. Applies to 2025 profits and to quarterly advance tax periods.[1][8]
- Global minimum tax (OECD Pillar Two model rules): groups whose consolidated revenue exceeded 750 million euros in at least two of the four previous years are taxed so that profits in each country bear at least 15%. A domestic top-up tax is due from group entities located in Türkiye and is credited against the global top-up tax; Turkish parent companies pay top-up tax on low-taxed foreign subsidiaries (income inclusion rule, 2024 profits), and an undertaxed profits rule applies from 2025. Public bodies, non-profits and pension funds are exempt.[1][5][14]
- Corporate tax rate raised from 25% to 30% for companies party to build-operate-transfer projects and to health public-private partnership projects (2025 profits).[1][3][5]
- Exemptions narrowed: free-zone manufacturers keep the corporate tax exemption only on products sold abroad; real-estate investment funds and trusts keep theirs only if they distribute at least 50% of their property gains; VAT exemption removed for yachts and boats used for leisure, sport or amateur fishing; cap removed on the specific excise duty on some tobacco products.[1][5]
- Fight against the informal economy: tax inspectors may record a business’s daily takings at least three times a month and twelve times a year, and a gap of more than 20% with declared turnover triggers an invitation to explain (from 2025); the President may impose withholding on payments by e-commerce platforms and on purchases in designated sectors; the tax-loss penalty rises by 50% for unregistered activity; special irregularity fines are raised and increase with repeated offences.[1][6]
- Tax settlement (uzlaşma) limited to penalties: the tax itself can no longer be negotiated with the administration; pending requests keep the former rules.[1][6][7]
- Carried-forward VAT: from 2030, input VAT not offset within five calendar years leaves the carried-forward balance for a special account and can be expensed after an audit; in mergers and demergers the balance passes to the new company only after an audit.[1][5]
- Departure fee for Turkish citizens travelling abroad raised from 50 to 500 lira in the law’s text, then indexed every year to the revaluation rate.[1][5]
- Minimum pension (old-age, disability and survivors’ pensions, per file) raised from 10,000 to 12,500 lira from the July 2024 payment; short-term insurance premium rate set at 2.25% instead of 2%, which the President may lower to 1.5% or raise to 2.5%.[1][6]
- Shares given free or at a discount by tech start-ups to their employees are exempt from income tax up to one year’s gross wage, with a clawback if they are sold within twelve years; precious metals held by businesses are valued at the exchange price.[1]
In data
2024-2033, as written in the law
| Financial year | Gross payroll of employees | Net book value of tangible assets |
|---|---|---|
| 2024 | 9.8% | 7.8% |
| 2025 | 9.6% | 7.6% |
| 2026 | 9.4% | 7.4% |
| 2027 | 9.2% | 7.2% |
| 2028 | 9% | 7% |
| 2029 | 8.2% | 6.6% |
| 2030 | 7.4% | 6.2% |
| 2031 | 6.6% | 5.8% |
| 2032 | 5.8% | 5.4% |
| 2033 onwards | 5% | 5% |
Scale starts at 0% · The law sets 9.8% and 7.8% for 2024, cut by 0.2 point a year for the next four years, then by 0.8 point (payroll) and 0.4 point (assets) a year for four years, down to the permanent 5%. Yearly values computed from the transitional article 17 of the Corporate Tax Law.
Budget balance
-2.9% GDP
2025
Public debt
23.7% GDP
2025
Informal employment
26.6%
2025
Timeline
The Plan and Budget Committee adopts the bill with amendments (report, order paper No. 159)[4][5][10]
Sent to committee with 53 articles, the bill left it with 54: one article was dropped and two were added late in the sitting (pensioners working for the Turkish Red Crescent, collective-agreement bonus of civil servants’ unions), which the opposition contested.
VAT exemption removed for yachts and pleasure boats; short-term insurance premium raised to 2.25%[1]
These articles took effect at the beginning of the month following publication.
Domestic minimum corporate tax applies to 2025 profits; new withholding powers and turnover checks in force[1][3]
Also from 2025 profits: 30% rate for build-operate-transfer and public-private partnership companies, free-zone exemption limited to exports, real-estate funds’ exemption tied to distributing half of their property gains. The undertaxed profits rule of the global minimum tax applies from 1 January 2025.
Implementing communiqué on the domestic and global top-up taxes published by the Ministry of Treasury and Finance[14]
Law No. 7582 widens the deductions allowed when computing the domestic minimum tax[3]
Earnings from foreign trade intermediation, from qualified service centres and the Istanbul Finance Centre deduction are added to the items deducted before applying the 10% floor.
- Upcoming: the outcome is not known
VAT not offset within five calendar years leaves the carried-forward balance[1]
It is moved to a special account and may, at the taxpayer’s request and after a tax audit, be booked as an expense for income or corporate tax.
The debate
Citoyen takes no position: arguments are reported as their authors put them.
According to its supporters
- Nilgün Ök (AK Party), first signatory, says the aim is that « those who earn little pay little, those who earn a lot pay a lot », and to fight the informal economy; she stresses that the law brings « no new tax burden » for low-income citizens, employees or pensioners, and presents the domestic minimum tax also as a safeguard of the tax system.[7]
- Mustafa Kalaycı, for the Nationalist Movement Party (MHP, in the governing alliance), notes that the global minimum tax follows an agreement approved by about 140 countries, and that deductions and exemptions keep the effective corporate tax rate far below the statutory 25%; the bill’s justification adds that tax not levied in Türkiye on multinationals would otherwise be collected by other countries.[8][5]
- The signatories and the officials heard in committee argue that free-zone firms’ growing domestic sales had become unfair competition for manufacturers in organised industrial zones, and that companies with large carried-forward VAT balances were often taken over to avoid VAT, which the new rules aim to stop.[5]
- Even in the opposition, Selim Temurci (Felicity Party) acknowledges that the corporate tax measures raise direct taxes and that the global minimum tax had to be adopted, since otherwise the parent company’s country would have collected it.[13]
According to its opponents
- Rahmi Aşkın Türeli, for the Republican People’s Party (CHP), calls the text another omnibus bill that is no tax reform: indirect taxes still make up about 65% of tax revenue, and two articles added at the last minute in committee bring back provisions annulled by the Constitutional Court; he also criticises the absence of Finance Minister Mehmet Şimşek from the debates.[10]
- Erhan Usta (İYİ Party) puts the package’s revenue effect at about 215 billion lira according to the Ministry’s impact analysis, roughly a fifth of the indirect tax rises of 2023; he says measures on port operators were dropped in committee under pressure, and predicts that groups will lobby to be carved out of the minimum corporate tax.[11]
- Hakkı Saruhan Oluç, for the DEM Party, says « the mountain gave birth to a mouse »: nothing lowers the tax paid by low earners, income tax brackets are not raised, and the package (about 200-210 billion lira in 2024 by his estimate) covers little of the 2.7 trillion lira deficit forecast in the 2024 budget.[12]
- Members of the Plan and Budget Committee objected that the five-year rule on carried-forward VAT could punish honest taxpayers and might breach the Constitution, that ending the free-zone exemption on domestic sales makes the zones less attractive to foreign investors, and that the tax administration lacks the staff to carry out the daily takings checks.[5]
Indicators to watch
- General government budget balance · OECDSee the card →
- Public debt · IMFSee the card →
- Informal employment · ILOSee the card →
- Corporate tax revenue in central government budget statistics · Hazine ve Maliye Bakanlığıno Citoyen card yet
- Domestic and global top-up tax returns and amounts collected · Gelir İdaresi Başkanlığıno Citoyen card yet
Sources
- [1]Vergi Kanunları ile Bazı Kanunlarda ve 375 Sayılı Kanun Hükmünde Kararnamede Değişiklik Yapılmasına Dair Kanun, Kanun No. 7524, Kabul Tarihi: 28/7/2024 –Resmî Gazete, Sayı 32620, August 2, 2024
- [2]Kanun No. 7524, Vergi Kanunları ile Bazı Kanunlarda ve 375 Sayılı Kanun Hükmünde Kararnamede Değişiklik Yapılmasına Dair Kanun (Mevzuat Bilgi Sistemi) –T.C. Cumhurbaşkanlığı Mevzuat Bilgi Sistemi
- [3]5520 sayılı Kurumlar Vergisi Kanunu, güncel metin (madde 32, 32/C, ek 1 ila ek 13, geçici 17) –T.C. Cumhurbaşkanlığı Mevzuat Bilgi Sistemi
- [4]Vergi Kanunları ile Bazı Kanunlarda Değişiklik Yapılmasına Dair Kanun Teklifi (2/2290), kanun teklifi bilgileri –Türkiye Büyük Millet Meclisi
- [5]Sıra Sayısı 159: Vergi Kanunları ile Bazı Kanunlarda Değişiklik Yapılmasına Dair Kanun Teklifi (2/2290) ile Plan ve Bütçe Komisyonu Raporu –Türkiye Büyük Millet Meclisi, July 2024
- [6]Vergi ve sosyal güvenlik alanına ilişkin düzenlemeler içeren kanun teklifi TBMM Genel Kurulunda kabul edildi –Türkiye Büyük Millet Meclisi, Meclis Haberleri, July 28, 2024
- [7]Genel Kurul konuşması, Nilgün Ök (Denizli), 28. Dönem 2. Yasama Yılı, 106. Birleşim –Türkiye Büyük Millet Meclisi, July 23, 2024
- [8]Genel Kurul konuşması, MHP Grubu adına Mustafa Kalaycı (Konya), 106. Birleşim –Türkiye Büyük Millet Meclisi, July 23, 2024
- [9]Genel Kurul konuşması, Plan ve Bütçe Komisyonu Başkanı Mehmet Muş (Samsun), 106. Birleşim –Türkiye Büyük Millet Meclisi, July 23, 2024
- [10]Genel Kurul konuşması, CHP Grubu adına Rahmi Aşkın Türeli (İzmir), 106. Birleşim –Türkiye Büyük Millet Meclisi, July 23, 2024
- [11]Genel Kurul konuşması, İYİ Parti Grubu adına Erhan Usta (Samsun), 106. Birleşim –Türkiye Büyük Millet Meclisi, July 23, 2024
- [12]Genel Kurul konuşması, DEM Parti Grubu adına Hakkı Saruhan Oluç (Antalya), 106. Birleşim –Türkiye Büyük Millet Meclisi, July 23, 2024
- [13]Genel Kurul konuşması, Saadet Partisi Grubu adına Selim Temurci (İstanbul), 106. Birleşim –Türkiye Büyük Millet Meclisi, July 23, 2024
- [14]Yerel ve Küresel Asgari Tamamlayıcı Kurumlar Vergisi Uygulama Genel Tebliği, Hazine ve Maliye Bakanlığı (Gelir İdaresi Başkanlığı) –Resmî Gazete, Sayı 33119, December 26, 2025
- [15]Küresel asgari tamamlayıcı kurumlar vergisinde beyanname süresi uzatıldı –Bloomberg HT, June 29, 2026 · secondary source