Law No. 7566 on Amendments to Tax Laws and Certain Laws and Decrees with the Force of Law, introducing certain changes in tax and social security matters, entered into force upon its publication in the Official Gazette on December 19, 2025.
This Legal Brief summarizes the provisions of Law No. 7566 that are of particular interest to the business community.
A- Tax related changes
- The practice of deducting interest on loans used to purchase of residential properties from rental income has been discontinued.
The amendment entered into force to be applied to the returns to be submitted for income and profits for the taxation periods starting on January 1, 2025, and the new provision will apply to residential rents to be declared for 2025.
- The fourth period provisional tax application has been reintroduced for corporate tax and income taxpayers.
The obligation to file a fourth-period provisional tax return, which was abolished in the 2022 tax period, has been reinstated.
As the amendment entered into force on the date of its publication to apply to declarations to be submitted for income and profits for tax periods beginning on or after January 1, 2025, a fourth term provisional tax return will be submitted for 2025.
- The penalty rate applied to the land registry tax for underreported property values has increased from 25% to 100%.
In title deed transactions, if it is determined that the fee was paid based on a value lower than the property tax value of the real estate or that the declared transfer and acquisition value does not reflect the actual situation, the tax penalty previously deducted at a rate of 25% has been increased to 100%. The effective date is December 19, 2025.
- Notary fee of 2 per thousand has been introduced for vehicle sales.
For the initial registration of vehicles and the sale and transfer of second-hand vehicles, notary fee of 2 per thousand (not less than 1,000 TL) has been introduced, payable on the sale and transfer price.
This fee will not be charged for the sale and transfer of registered vehicles to car dealers (those with a second-hand motor vehicle trade authorization certificate). The effective date is January 1, 2026.
- Certificates, licenses, and permits for certain professional groups have been included in the annual fee.
Certificates belonging to private healthcare institutions providing outpatient diagnosis and treatment and private healthcare institutions providing oral and dental health services, licenses granted to veterinary clinics and polyclinics and animal hospitals, and precious metals establishment and activity permit certificates, jewelry, authorization certificates for second-hand motor vehicle and real estate trade, and commercial airline and general aviation operating licenses will be subject to the annual fee. The effective date is January 1, 2026.
- Investment Monitoring and Coordination Presidencies (formerly Special Provincial Administrations) have been granted exemptions from VAT, property registration fees, and motor vehicle tax in certain cases.
Investment Monitoring and Coordination Boards have been granted VAT exemptions on real estate sales, land registry fee exemptions on real estate acquisition and sales transactions, and motor vehicle tax exemptions on vehicles registered in their name. The VAT and title deed fee exemptions came into effect on December 19, 2025, while the Motor Vehicle Tax exemption will come into effect on January 1, 2026.
- A temporary regulation has been made for excessively increased real estate tax values for 2026.
Based on the minimum land and real estate square meter unit values estimated for 2026, the property tax values calculated for buildings and real estate for 2026 cannot exceed twice the tax values for 2025.
In addition, the values determined by the Tax Assessment Commissions will be increased by the revaluation rate for the following three years.
Prior to the regulation, the increase was “half the revaluation rate.”
Both regulations entered into force on December 19, 2025.
- The practice of issuing post-dated checks has been extended.
The temporary provision in the Checks Law allowing for the issuance of post-dated checks was set to expire on December 31, 2025. As a result of the amendment, post-dated checks may be issued until December 31, 2028.
B- Changes related to social security
- The young entrepreneur insurance premium support has been abolished.
Under the Income Tax Law’s repeated Article 20, as stipulated in Article 81, Paragraph 1, Subparagraph (k) of Law No. 5510, young entrepreneurs who benefit from the income exemption and who have reached the age of 18 but not yet reached the age of 29 as of the start date of their tax liability, who are subject to income tax under the actual or simplified method due to commercial income or freelance income and who became Bağ-Kur insured for the first time as of June 1, 2018, the premium support provided for one year based on the lower limit of income subject to premiums has been abolished as of December 31, 2025.
- The 5-point insurance discount in sectors other than the manufacturing sector will be applied as 2 points.
The 5-point insurance premium discount provided to private sector employers who employ insured persons covered by Article 4-1/a of Law No. 5510 for the employer’s share of disability, old-age, and death insurance premiums payable to the Social Security Institution (SGK) will be applied as 2 points, except for the manufacturing sector.
The 5-point insurance premium discount provided for the employer’s share of disability, old-age, and death insurance contributions payable to the Social Security Institution (SGK) by employers operating in the manufacturing sector who employ insured persons under Article 4-1/a of Law No. 5510 will be applied until December 31, 2026.
The President is authorized to extend this period until December 31, 2027.
The 5-point insurance premium reduction, which will be applied as 2 points excluding the manufacturing sector, will come into effect as of January 1, 2026, and will be valid starting from the January 2026 declaration/statement.
- The upper limit of income subject to insurance premiums has been raised.
The upper limit of earnings subject to insurance premiums specified in Article 82 of Law No. 5510 has been raised from 7.5 (seven and a half) times the minimum wage to 9 (nine) times the minimum wage.
This application will enter into force on January 1, 2026, and will be effective as of the January 2026 declaration/statement.
The premium rate has been increased. Under Law No. 5510;
- The voluntary insurance premium rate stipulated in Article 52 has been increased from 32% to 33%, and the disability, old age, and death insurance premium rate of 20% has been increased to 21%.
- The insurance premium rate paid by those working intermittently under a service contract in agriculture or forestry, as stipulated in Additional Article 5, has been increased from 34.5% to 35.5%; the disability, old age, and death insurance premium rate, which was 20%, has been increased to 21%.
- The insurance premium rate paid by some part-time workers regulated in Annex 6 is increased from 32.5% to 33.5%, and the disability, old age, and death insurance premium rate of 20% is increased to 21%.
- The insurance premium rate paid by insured persons working less than 10 days in domestic services, as stipulated in Article 9 of the Annex, has been increased from 32.5% to 33.5%, and the disability, old age, and death insurance premium rate of 20% has been increased to 21%.
- The disability, old-age, and death insurance premium rate stipulated in Article 81 has been increased from 20% to 21%, and the employer’s share premium rate of 11% has been increased to 12%.
This regulation will come into effect on January 1, 2026, and the new rates will be applied in the January 2026 declaration/statement.
You can access the full text of Law No. 7566 on Amendments to Tax Laws and Certain Laws and Decrees with the Force of Law, published in the Official Gazette dated December 19, 2025, via the link below.
https://www.resmigazete.gov.tr/eskiler/2025/12/20251219-1.htm
This Legal Alert has been prepared for general information purposes only on current legal issues, and the evaluations contained in this Legal Alert do not constitute legal advice or a legal opinion. It is not possible to impose any liability on SRP-Legal Law Office due to the content of this Legal Alert. It is recommended to obtain the opinion of a legal advisor regarding your questions and enquires within the scope of this Legal Alert.
