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Türkiye is seeking to position itself as a regional trade hub over the medium term, similar to Hong Kong, Singapore, and the Netherlands, through a new package of tax incentives, Treasury and Finance Minister Mehmet Simsek said.
The legislative proposal submitted to parliament aims to boost exports, attract direct investment and encourage multinational companies to establish regional centers in Türkiye, Simsek told state broadcaster TRT late Tuesday.
"It will not have an immediate impact, but over the medium and long term, it will turn Türkiye into an important trade hub. We attach great importance to this," Simsek explained.
Simsek pointed to major tax exemptions for transit trade companies, including a 100% corporate tax exemption for firms operating within the Istanbul Financial Center (IFC) and a 95% exemption for those operating elsewhere in Türkiye.
If approved by parliament, the proposal would lower the corporate tax rate to 9% for manufacturing exporters and 14% for other exporting companies.
"Our goal is to attract export-oriented manufacturing investments both domestically and internationally," Simsek stated, adding that the government wants to increase investment and reduce the foreign trade deficit.
Ankara also wants companies, including U.S. tech titans Google, Microsoft, and Apple, to relocate service-related operational centers to Türkiye, he added.
Companies moving their service centers to Türkiye and generating at least 80% of revenues from abroad would receive a full corporate tax exemption for 20 years if located within the Istanbul Financial Center, according to the proposal. Firms operating outside the center would still qualify for a 95% reduction.
The package also includes income tax exemptions for qualified employees, covering salaries worth between four and six times the minimum wage for both domestic and foreign workers.
Simsek revealed that several major companies had already shown interest in the framework and predicted faster results in this area.
The government also plans to transform the Presidency Investment and Finance Office into a "one-stop office" for investors to streamline investment procedures.
Simsek said the legislation also seeks to attract wealthy foreign investors and deepen Türkiye’s financial sector.
Under the proposal, individuals bringing foreign-earned income into Türkiye would receive tax exemptions on those earnings for 20 years, provided the income was generated abroad.
The minister added that a standard 5% tax would apply under normal conditions, although the president would have authority to reduce the rate to zero or increase it to 10%, depending on how long the funds remain in banks or government debt instruments.
According to an impact analysis prepared by the Treasury and Finance Ministry, lowering the corporate tax rate for exporters could cost the budget an estimated ₺34 billion ($751.7 million).
Parliamentary discussions on the bill were set to begin on Wednesday.
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