Law No. 7577: Significant Amendments in Taxation and Social Security

"The Law No. 7577 on Amendments to Certain Laws", published in the Official Gazette dated April 17, 2026, introduced significant regulations affecting taxation, social security, and various sectors, which have entered into force.

The amendments are as follows:

• A regulation has been introduced stating that advertising and promotional expenses related to all types of games of chance and betting cannot be deducted when determining the income and corporate tax base. The regulation entered into force on April 17, 2026.
• As of January 1, 2027, the profits earned by healthcare institutions operating within foundation universities will be subject to corporate tax. The regulation will enter into force on January 1, 2027.
• As of June 1, 2026, in cases where there is public interest under the Expropriation Law No. 2942, the transfer of expropriated immovable properties to the State and public legal entities carrying out the expropriation will be exempt from VAT. The regulation will enter into force on June 1, 2026.
• For earnings obtained as of January 1, 2026, the corporate tax exemption for companies engaged in production activities in free zones has been extended to include profits from the sale of goods produced in these zones not only abroad but also within free zones or to other free zones. The regulation entered into force on April 17, 2026, applicable to earnings from January 1, 2026 onwards.
• Certain vehicles under HS codes 87.03 (excluding those exceeding TL 2,873,900 including all taxes), 87.04 (excluding those with engine capacity over 2,800 cm³), and 87.11 are exempt from Special Consumption Tax (SCT) for their first acquisition once every 10 years by persons with disabilities who have fitted special adaptive equipment suitable for their disability, or by individuals with at least 40% orthopedic disability who cannot obtain a driving license due to their condition. The regulation entered into force on April 17, 2026.
• Currently, unemployment insurance contributions are applied as 1% employee, 2% employer, and 1% state share based on the insured person's monthly gross earnings subject to premiums under Articles 80 and 82 of Law No. 5510. An amendment to Law No. 4447 grants the President the authority to increase or reduce the state's contribution rate by up to half. The regulation entered into force on April 17, 2026.

You can access our previously published article on the subject from here.

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