Simsek Unveils Radical 2026 Investment Reform: Türkiye Slashes Corporate Tax to 9% for Exporters and Declares Istanbul a ‘Zero-Tax’ Global Hub

Finance Minister Mehmet Simsek unveils Türkiye's 2026 reform plan: 9% tax for manufacturer-exporters, 100% tax-free transit trade, and 20-year IFC tax holidays.

By: AXL Media

Published: Apr 27, 2026, 8:26 AM EDT

Source: Information for this report was sourced from Anadolu Agency

A Radical Shift to Single-Digit Corporate Tax

In a move designed to disrupt global outsourcing trends and attract high-value manufacturing, Minister Mehmet Simsek announced a sharp reduction in the standard 25% corporate tax rate. Manufacturer-exporters will now benefit from a single-digit tax rate of 9%. This "radical step" is intended to accelerate Türkiye’s industrial transformation, shifting production from medium-low technology toward high-tech sectors. Simsek emphasized that Türkiye’s manufacturing value-added rate is now on par with the "Asian Tigers," providing a robust foundation for this aggressive fiscal move aimed at securing long-term foreign direct investment (FDI).

Istanbul Finance Center: The 2047 Strategy

The Istanbul Finance Center (IFC) is being repositioned as a premier regional hub with incentives locked in through 2047. The government has expanded previous 50% tax exemptions to a full 100% for transit trade companies based in the center. Furthermore, companies that relocate their regional headquarters to the IFC will receive a 20-year corporate tax exemption. To attract global talent, eligible employees at these headquarters will be granted income tax exemptions up to approximately $3,000 (four times the minimum wage), provided the services managed—such as advisory or HR—generate 80% of their revenue from international sources.

Capturing the Global Services Surplus

With Türkiye already boasting a service export surplus exceeding $60 billion, the new reform package grants a 100% tax exemption for service exports. This measure specifically targets high-growth industries including software development, video gaming, medical tourism, engineering, and architecture. Simsek noted that the services sector is particularly resilient to the current climate of global trade protectionism, making it a critical pillar of the $1.6 trillion Turkish economy—which now surpasses the combined GDP of its eight neighboring countries.