{"id":1119,"date":"2026-07-09T10:51:00","date_gmt":"2026-07-09T10:51:00","guid":{"rendered":"https:\/\/kahramanhukuk.com.tr\/?post_type=yayinlar&#038;p=1119"},"modified":"2026-07-09T12:37:19","modified_gmt":"2026-07-09T12:37:19","slug":"general-communique-on-income-tax-regarding-the-tax-exemption-for-foreign-source-income-has-been-published","status":"publish","type":"yayinlar","link":"https:\/\/kahramanhukuk.com.tr\/en\/publications\/general-communique-on-income-tax-regarding-the-tax-exemption-for-foreign-source-income-has-been-published\/","title":{"rendered":"GENERAL COMMUNIQU\u00c9 ON INCOME TAX REGARDING THE TAX EXEMPTION FOR FOREIGN-SOURCE INCOME HAS BEEN PUBLISHED"},"content":{"rendered":"<div style=\"text-align: justify; text-justify: inter-word;\">\n\n<p class=\"wp-block-paragraph\">The General Communiqu\u00e9 on Income Tax (the <strong>\u201cCommuniqu\u00e9\u201d<\/strong>), issued by the Ministry of Treasury and Finance (<strong>Revenue Administration<\/strong>), was published in the Official Gazette dated 4 July 2026 and numbered 33300.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new regime provides a twenty-year income tax exemption for certain foreign-source income and earnings derived by individuals who become resident in T\u00fcrkiye, subject to the conditions set forth under the relevant legislation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This information note addresses the scope of the exemption, eligibility requirements, application procedure, treatment of Turkish-source and foreign-source income, specific circumstances affecting eligibility, and the consequences of non-compliance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A. Scope of the Tax Exemption<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under Repeated Article 20\/D of Income Tax Law No. 193, individuals who are considered resident in T\u00fcrkiye may benefit from an income tax exemption for income and earnings derived outside T\u00fcrkiye for a period of twenty years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To qualify for the exemption, the individual must not have had a domicile or tax liability in T\u00fcrkiye during the three calendar years preceding the year in which the individual becomes resident in T\u00fcrkiye.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exemption applies exclusively to foreign-source income and earnings. Such income is not required to be declared through an annual income tax return and, where an annual return is filed in respect of other taxable income, the exempt foreign-source income shall not be included in the return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>B. Individuals Eligible for the Exemption<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exemption is available only to individuals and does not apply to corporate taxpayers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In order to benefit from the exemption, an applicant must:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>be considered resident in T\u00fcrkiye as of the application date;<\/li>\n\n\n\n<li>not have had a domicile in T\u00fcrkiye during the three calendar years preceding the year in which the individual became resident in T\u00fcrkiye;<\/li>\n\n\n\n<li>not have had tax liability in T\u00fcrkiye during the same three-calendar-year period, subject to the limited exceptions explained below;<\/li>\n\n\n\n<li>have become resident in T\u00fcrkiye on or after 1 January 2026; and<\/li>\n\n\n\n<li>submit the application within the prescribed period and obtain an <strong>Exemption Certificate for Foreign-Source Income and Earnings<\/strong> from the competent tax office.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The competent tax office will examine whether the applicant had a domicile or tax liability in T\u00fcrkiye during the relevant three-year period and whether the applicant is considered resident in T\u00fcrkiye. The exemption certificate will be issued only after the relevant conditions have been verified.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>C. Application Procedure and Deadlines<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Individuals wishing to benefit from the exemption must apply to the competent tax office by the end of the calendar year in which they become resident in T\u00fcrkiye.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, individuals who become resident in T\u00fcrkiye during the last two months of a calendar year may apply until the end of the second month of the following calendar year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Failure to submit the application within the applicable deadline prevents the issuance of the exemption certificate, even where the substantive eligibility requirements are otherwise satisfied.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accordingly, timely application is an essential condition for benefiting from the exemption.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>D. Previous Tax Liability in T\u00fcrkiye and Specific Exceptions<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a general rule, an individual who had tax liability in T\u00fcrkiye during the three calendar years preceding the year in which the individual became resident in T\u00fcrkiye will not qualify for the exemption.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the Communiqu\u00e9 introduces a limited exception. Previous tax liability arising solely from the following Turkish-source income does not prevent an individual from benefiting from the exemption:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>income from immovable property;<\/li>\n\n\n\n<li>income from movable capital; and<\/li>\n\n\n\n<li>capital gains.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, for example, an individual who previously derived rental income from a property located in T\u00fcrkiye and filed an income tax return in respect of such income may still qualify for the exemption, provided that the remaining conditions are satisfied.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By contrast, previous tax liability arising from other categories of income, such as employment income or commercial income, may prevent the individual from qualifying for the exemption. The Communiqu\u00e9 expressly illustrates that employment income received from a Turkish employer and commercial activities carried out in T\u00fcrkiye during the relevant three-year period may disqualify an applicant.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>E. Distinction Between Foreign-Source and Turkish-Source Income<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exemption applies solely to income and earnings derived outside T\u00fcrkiye. Income and earnings derived in T\u00fcrkiye remain subject to the ordinary Turkish tax rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accordingly, an individual benefiting from the exemption may still be subject to Turkish income tax in respect of, among others, rental income derived from real estate located in T\u00fcrkiye, dividends received from Turkish resident companies, commercial income generated in T\u00fcrkiye, and professional income arising from services performed in T\u00fcrkiye.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Communiqu\u00e9 clarifies that the location of the customer or payer alone does not determine whether income qualifies as foreign-source income. For example, professional services physically performed in T\u00fcrkiye for foreign-resident clients do not fall within the exemption merely because the clients are located abroad.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Conversely, income such as dividends received from foreign-resident companies and rental income derived from real estate located outside T\u00fcrkiye may fall within the exemption, provided that all eligibility conditions are met.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>F. Tax Returns, Expenses and Foreign Taxes<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Foreign-source income and earnings covered by the exemption are not required to be reported in an annual income tax return. If the taxpayer is required to file an annual return due to other taxable income, exempt foreign-source income will not be included in that return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Expenses and costs relating to exempt foreign-source income cannot be deducted when determining taxable income in T\u00fcrkiye.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Furthermore, taxes paid abroad in respect of income covered by the exemption cannot be credited against income tax assessed in T\u00fcrkiye.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>G. Loss of Eligibility and Tax Consequences<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If it is subsequently determined that an individual benefited from the exemption despite failing to satisfy the relevant conditions, the exemption may be cancelled retroactively.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In such circumstances, the tax that was not assessed due to the improper application of the exemption will be collected together with a tax loss penalty and late-payment interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Communiqu\u00e9 illustrates that where a subsequent tax audit reveals undeclared commercial activity during the relevant eligibility period and retroactive tax liability is established, the exemption certificate may be cancelled as of the date on which the individual became resident in T\u00fcrkiye. The previously undeclared foreign-source income may then become subject to taxation together with the applicable penalties and interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>H. Position of Non-Residents<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Communiqu\u00e9 also clarifies that individuals who are not considered resident in T\u00fcrkiye remain subject to the general taxation principles applicable to non-residents.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accordingly, non-resident individuals are generally taxed in T\u00fcrkiye only on their Turkish-source income. The mere transfer of funds from abroad to a bank account in T\u00fcrkiye does not, by itself, result in Turkish taxation of the transferred amount or of the underlying foreign-source income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, where an individual who previously obtained an exemption certificate subsequently ceases to be resident in T\u00fcrkiye, the individual&#8217;s tax position will be assessed under the general rules applicable to non-residents.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>I. Conclusion<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The General Communiqu\u00e9 on Income Tax establishes the implementation framework for a significant tax incentive aimed at individuals who become resident in T\u00fcrkiye after a qualifying period of non-residence and absence of Turkish tax liability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exemption provides eligible individuals with a twenty-year income tax exemption in respect of foreign-source income and earnings. However, eligibility depends on strict conditions concerning the applicant&#8217;s domicile and tax liability history, the date on which Turkish tax residency is established, and compliance with the prescribed application deadline.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In practice, individuals considering relocation to T\u00fcrkiye should carefully review their residence history, previous tax registrations and sources of income in T\u00fcrkiye before establishing Turkish tax residency. Particular attention should also be paid to distinguishing foreign-source income from Turkish-source income, as the exemption does not eliminate tax obligations relating to income and earnings derived in T\u00fcrkiye.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where the eligibility conditions are satisfied, a timely application must be submitted to the competent tax office in order to obtain the exemption certificate. As subsequent findings of non-compliance may result in retroactive taxation, tax loss penalties and late-payment interest, the applicant&#8217;s historical residence and tax status should be carefully verified before relying on the exemption.<\/p>\n\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The General Communiqu\u00e9 on Income Tax (the \u201cCommuniqu\u00e9\u201d), issued by the Ministry of Treasury and Finance (Revenue Administration), was published in the Official Gazette dated 4 July 2026 and numbered 33300. The new regime provides a twenty-year income tax exemption for certain foreign-source income and earnings derived by individuals who become resident in T\u00fcrkiye, subject [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","format":"standard","meta":{"footnotes":""},"yayinlar-kategori":[43],"class_list":["post-1119","yayinlar","type-yayinlar","status-publish","format-standard","hentry","yayinlar-kategori-legal-bulletins"],"_links":{"self":[{"href":"https:\/\/kahramanhukuk.com.tr\/en\/wp-json\/wp\/v2\/yayinlar\/1119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kahramanhukuk.com.tr\/en\/wp-json\/wp\/v2\/yayinlar"}],"about":[{"href":"https:\/\/kahramanhukuk.com.tr\/en\/wp-json\/wp\/v2\/types\/yayinlar"}],"author":[{"embeddable":true,"href":"https:\/\/kahramanhukuk.com.tr\/en\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":2,"href":"https:\/\/kahramanhukuk.com.tr\/en\/wp-json\/wp\/v2\/yayinlar\/1119\/revisions"}],"predecessor-version":[{"id":1121,"href":"https:\/\/kahramanhukuk.com.tr\/en\/wp-json\/wp\/v2\/yayinlar\/1119\/revisions\/1121"}],"wp:attachment":[{"href":"https:\/\/kahramanhukuk.com.tr\/en\/wp-json\/wp\/v2\/media?parent=1119"}],"wp:term":[{"taxonomy":"yayinlar-kategori","embeddable":true,"href":"https:\/\/kahramanhukuk.com.tr\/en\/wp-json\/wp\/v2\/yayinlar-kategori?post=1119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}