Tax Break For Companies On The Turkish Stock Exchange
In Turkey, a corporate tax break for businesses that newly issue their shares on Borsa Istanbul has been approved.
With the exception of certain financial services companies, businesses which list their shares on the stock exchange for the first time will benefit from a reduced rate of corporate tax of 18 percent, down from 20 percent, for up to five years. Law No. 7256, published on November 17, 2020 provides that the measure will be offered for fiscal years beginning on or after January 1, 2021.
At least 20 percent of a company’s shares must be offered in order for the business to avail itself of the reduced rate.
An earlier iteration of the law was to include a provision allowing the president discretion to lower the corporate income tax rate by up to five percentage points. However, this provision was removed from the final bill.
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