Law No. 7577 Amending Certain Laws, adopted on 02.04.2026, was published in the Official Gazette of 17.04.2026. The Law amends income and corporate tax, VAT, special consumption tax (ÖTV) and free zone legislation. The meal allowance provision on the SGK premium exemption is covered in a separate circular.

1. Advertising expenses for games of chance

Provisions added to Article 41 of the Income Tax Law and Article 11 of the Corporate Tax Law make all advertising and promotion expenses for games of chance and betting non-deductible. The provision entered into force on its publication date.

2. Free zone income exemption extended

The income and corporate tax exemption previously granted only to income from sales abroad of goods produced in free zones has been extended to cover sales to the same free zone or to other free zones. The provision applies to income earned from 01.01.2026.

3. VAT exemption for transfers under expropriation

The transfer of real estate to the expropriating administration under Expropriation Law No. 2942 has been exempted from VAT. The provision entered into force on 01.06.2026.

4. ÖTV exemption for vehicle purchases by people with disabilities reorganised

Following the Constitutional Court's annulment decision, the ÖTV exemption for vehicle purchases by people with disabilities has been reorganised:

• The exemption covers people with disabilities who will personally drive a vehicle specially adapted to their disability, and people who cannot obtain a driving licence because of an orthopaedic disability of 40% or more.
• Cars (87.03) with a sale price including taxes above TRY 2,873,900 and vehicles in heading 87.04 with an engine capacity above 2,800 cm³ are not covered.
• The exemption can be used once every ten years, on first acquisition.

5. Health institutions of foundation universities

The corporate tax and VAT exemptions granted to hospitals and health institutions of foundation higher education institutions will be abolished from 01.01.2027.

6. Assessment

Companies producing in free zones should take the extended exemption into account in their 2026 provisional tax returns; businesses with advertising spending aimed at the games of chance sector must treat these expenses as non-deductible.

This circular is for general information only. Please contact us about your specific situation. The Turkish original is available here.

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