The service export income deduction rate in Article 10/1-ğ of the Corporate Tax Law has been raised from 80% to 100% by Presidential Decision No. 11257. The new rate applies to income for tax periods starting on or after 01.01.2026.

1. Services covered by the deduction

• Architecture, engineering, design and software services,
• Medical reporting and bookkeeping services,
• Call centre, product testing and certification services,
• Data storage, data processing and data analysis services,
• Vocational training services determined after consulting the relevant ministries,
• Education and health services subject to the permission and supervision of the relevant ministry.

Not every service provided abroad qualifies for the deduction; the service must be one of the activities listed above. Whether services such as general management consultancy or sales and marketing support are covered must be assessed case by case.

2. Conditions for the deduction

• The service must be provided to persons not resident in Turkey or to entities whose legal seat and place of business are abroad,
• The service must be used exclusively abroad (services relating to activities in Turkey are not covered),
• The income must be transferred to Turkey by the filing deadline of the corporate tax return for the relevant period,
• Revenue covered by the deduction and the related expenses and costs must be tracked separately.

3. Effect

The service export income deduction is not among the items that can be deducted in the domestic minimum corporate tax calculation. For this reason, the minimum corporate tax comparison must still be made even where the full deduction is applied.

4. Assessment

We recommend that companies exporting software, game development, design and data services apply the new rate in their 2026 provisional tax calculations and regularly archive their foreign client contracts and the documents showing that the service is used abroad. Companies operating in technology development zones should separately assess, according to the type of income, whether to use the zone income exemption or this deduction.

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

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