Turkey has introduced a tax exemption for young entrepreneurs,
under 29 years' old. Provided certain conditions are met, TRY
75,000 of income over three tax periods will be exempt from income
tax. Passport fees are also waived in certain conditions. The Law
Number 6663 Amending the Income Tax and other Laws
("Amendment Law") was published in
Official Gazette number 29620 on 10 February 2016, entering into
effect on the same date.
The Amendment Law makes changes to the Income Tax Law number 193
dated 31 December 1960 ("Income Tax
Law"). Accordingly, fully responsible natural
persons, under the age of 29, who are subject to income tax
liability for the first time (due to commercial, agricultural or
professional activity), TRY 75,000 of revenue generated over three
taxation periods will be exempt from income tax if:
The employment start date is notified
within legal notice periods.
Works in person at their own job;
Has management responsibilities.
Professional activities or businesses
are not be taken over from spouses, blood-relatives, or up to third
degree relatives (except for take over by spouses and children due
He/she should not become partner to
an existing business or professional activity later on.
If the activity is carried out within an ordinary partnership
and unlimited company, all partners must meet the Amendment
Even if less than TRY 75,000 revenue is generated, an annual tax
return should still be submitted.
The exemption will not apply to taxes paid pursuant to Article
94 of the Income Tax Law.
The Amendment Law also changes Article 85 of the Fees Act Number
492, dated 2 July 1964. Accordingly, passports issued for persons
under 25 years' old who are still pursuing academic studies are
now exempt from fees.
The Ministry of Finance is empowered to establish implementation
procedures and principles for the Amendment Law in relation to
amendments to the Income Tax Law.
Please see this
link for the full text of the Law (only available in
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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