Circular 2026 – 043
Tax Exemption for Gains and Income Earned Abroad
The General Commun.
As is known, Article 4 of Law No. 7582 on Amending Certain Laws added Article 20/D to the Income Tax Law.
Under the relevant provision, gains and income earned abroad by individuals deemed resident in Turkey shall be exempt from income tax for twenty years, provided that they did not have a domicile and tax liability in Turkey in the last three calendar years prior to being deemed resident in Turkey.
Regarding the regulations in question, in this Communiqué;
- Regarding the utilization of the exemption, the issuance of the exemption certificate and the conditions to be met for exemption utilization,
-That the existence of taxation in Turkey due to immovable capital income, portfolio income, or capital gains realized in Turkey prior to falling within the scope of the exemption shall not prevent the utilization of this exemption,
– In case the exception is utilized, it is stated that an annual tax return will not be filed for earnings and revenues obtained outside of Turkey; and that even if a tax return is filed for other income, these incomes will not be included in the return. Explanations and examples regarding this matter are provided.
This Communiqué shall enter into force on the date of its publication.
You can access the mentioned notification via the following link.
Sincerely
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