Key Legislative Changes Introduced by Law No. 7590

Law No. 7590, published in the Official Gazette No. 33326 dated July 31, 2026, introduced significant legislative amendments across a broad range of areas, including taxation, employment, public procurement, transportation, education, electronic communications, and social security.

1. Tax Incentives for Nuclear Energy Investments

Law No. 7590 amended the Value Added Tax (VAT) Law by expanding the scope of the VAT exemption applicable to the supply of machinery and equipment used in investments for electricity generation at nuclear power plants. The amendment aims to reduce the tax burden associated with investment expenditures and support capital-intensive strategic energy projects.

2. Extension of Social Security Premium Support for the Tourism Sector

The Law extends the duration of the employer's social security premium support available to employers operating in the tourism sector. While the eligibility criteria for the incentive remain unchanged, the continuation of the support is intended to help preserve employment and alleviate labor costs within the sector.

3. New Framework for Special Consumption Tax (SCT) on Motor Vehicles

Amendments to the Special Consumption Tax (SCT) Law have restructured the taxation regime applicable to motor vehicles. The new framework is designed to provide greater flexibility in the taxation of vehicles, particularly electric and hybrid models, and to facilitate a more dynamic tax policy that reflects technological developments in the automotive industry.

4. Strengthening the Principle of Reciprocity in Public Procurement

Amendments to the Public Procurement Law No. 4734 introduce new provisions concerning the application of the principle of reciprocity in the evaluation of foreign bidders participating in public tenders. The objective is to establish a more balanced procurement framework by taking into account the treatment of Turkish companies in foreign procurement markets.

5. New Powers in Electronic Communications and Cybersecurity

The amendments to the electronic communications legislation expand the administrative powers relating to the security and continuity of electronic communications infrastructure. In addition to strengthening operators' obligations regarding security measures, the amendments grant public authorities broader supervisory and intervention powers to address cybersecurity risks and ensure the resilience of critical communications infrastructure.

6. Revised Sanctions for Private Educational Institutions

Amendments to the Private Educational Institutions Law No. 5580 restructure the administrative sanctions applicable to institutions operating in violation of the relevant legislation. The revised framework aims to enhance regulatory oversight and reinforce compliance with statutory requirements governing private educational institutions.

7. Updated Administrative Fines in the Transportation Sector

The Law revises the administrative fines prescribed under various transportation-related laws and updates the sanctions applicable to violations arising from passenger and freight transportation activities. The amendments are intended to strengthen regulatory compliance, improve transportation safety, and enhance the effectiveness of enforcement mechanisms across the sector.

8. Minimum Pension Increased to TRY 23,552

Pursuant to Law No. 7590, published in the Official Gazette dated 31 July 2026, an important amendment concerning pensioners was introduced to the social security legislation.

Under Article 16 of the Law, the minimum pension amount stipulated in Additional Article 19 of the Social Insurance and General Health Insurance Law No. 5510 has been increased from TRY 20,000 to TRY 23,552.

You may access the relevant announcement here. (In Turkish)