From 2026, Türkiye offers a major corporate tax incentive for qualifying foreign-to-foreign goods trading and brokerage. Companies can deduct 95% of qualifying profit from the corporate tax base, with a 100% deduction available in specified Istanbul Financial Center and industrial-zone cases.
Where a Turkish company purchases goods abroad and sells them abroad without bringing the goods into Türkiye — or qualifies as an intermediary in foreign goods trading — 95% of qualifying profit can be deducted from the Turkish corporate tax base if the conditions are met. The deduction can reach 100% in qualifying IFM or eligible industrial-zone cases.
What Transactions Are Covered?
Foreign-to-Foreign Trading
A Turkish company purchases merchandise outside Türkiye and sells it outside Türkiye without importing the goods into Türkiye.
Foreign Trade Brokerage
The Turkish company intermediates a goods transaction occurring abroad, with both the seller and buyer located outside Türkiye.
The incentive is therefore aimed at international trading margins and brokerage income, not ordinary domestic wholesale activity.
How the 95% Deduction Works
The deduction applies to qualifying profit, not gross sales. At the current 25% general corporate tax rate, leaving only 5% of qualifying profit in the tax base produces a simple tax equivalent of approximately 1.25% of qualifying profit before other tax mechanics.
100% Deduction: IFM and Certain Industrial Zones
The deduction can reach 100% for qualifying companies in the Istanbul Financial Center with the required participant status and for companies in industrial zones covered by the relevant Presidential determination. Location should be assessed together with substance, banking, licensing, staffing and operating cost.
Key Conditions
| Condition | Practical effect |
|---|---|
| Goods stay outside Türkiye | For foreign-to-foreign resale, the merchandise must not be brought into Türkiye. |
| Foreign buyer and seller for brokerage | Both sides of the underlying merchandise transaction must be outside Türkiye. |
| Profit transfer | Qualifying profit must be transferred to Türkiye by the annual CIT filing deadline for the relevant period. |
| Separate accounting | Qualifying revenue, costs and expenses should be tracked separately from non-qualifying business. |
| Documented trade flow | Contracts, invoices, title / shipping records and banking should tell the same commercial story. |
Domestic Minimum Corporate Tax
The 2026 amendments specifically allow the transit-trade deduction to be taken into account when determining the domestic minimum corporate tax base. This is critical because it preserves the commercial value of the incentive rather than automatically clawing it back through the minimum-tax calculation.
VAT Needs Transaction-by-Transaction Analysis
Transit trade is often described as “outside Turkey,” but VAT treatment should still be documented carefully. The contractual flow, place of supply, goods movement and the Turkish entity’s role matter. A trading company should not rely on a generic “no VAT” label without a transaction file supporting the conclusion.
Accounting Design for a Trading Company
- Separate qualifying vs domestic / non-qualifying revenue.
- Track purchases and sales by transaction chain.
- Maintain currency and FX detail.
- Reconcile invoices to shipping / title documents.
- Track receivables and the Turkey profit-transfer deadline.
- Identify related parties for transfer pricing.
- Maintain VAT and WHT logic by transaction type.
Who Is This Most Relevant For?
Trading Houses
International groups buying and selling commodities, electronics, automotive parts or other goods outside Türkiye.
Regional Distribution Groups
Groups centralizing commercial contracting and margin in a Turkish entity while goods remain outside Türkiye.
Brokerage Platforms
Companies arranging foreign goods transactions between non-Turkish buyers and sellers.
Typical Risk Areas
- Goods unexpectedly entering Türkiye.
- Turkish buyer or seller in an intermediary transaction.
- Unclear passage of title or risk.
- Mixed domestic and foreign business without cost segregation.
- Profit not transferred by the filing deadline.
- Incorrect VAT assumptions.
- Transfer-pricing issues where related entities participate in the chain.
- Mismatch between contracts, invoices, shipping and payments.
SystemsCPA Implementation Model
Transaction map
Map seller, buyer, contracting entities, goods movement, title flow, invoicing and payments.
Eligibility review
Separate qualifying transit trade from domestic trade, services and other income.
Accounting setup
Create account and cost-center coding that allows qualifying profit to be calculated and supported.
Monthly control
Reconcile transaction files, tax treatment, intercompany, FX and profit-transfer requirements.
Frequently Asked Questions
What is the 2026 transit trade deduction in Turkey?
Qualifying companies can deduct 95% of profit from goods purchased abroad and sold abroad without entering Turkey, or from qualifying brokerage of foreign goods transactions, subject to the statutory conditions.
Can the deduction reach 100%?
Yes. The rate can be 100% for qualifying companies operating in the Istanbul Financial Center with the required participant status and in certain qualifying industrial-zone cases.
Does the merchandise have to enter Turkey?
No. The core regime applies to goods purchased abroad and sold abroad without being brought into Turkey.
What is the condition for brokerage transactions?
For qualifying brokerage of foreign goods trading, both the seller and the buyer of the merchandise must be outside Turkey.
Must profit be transferred to Turkey?
Yes. The relevant profit must be transferred to Turkey by the deadline for filing the annual corporate income tax return for the relevant accounting period.
What is the approximate effective corporate tax rate?
At a 25% general corporate tax rate, a 95% deduction leaves 5% of qualifying profit in the base, producing a simple pre-adjustment equivalent of 1.25% of qualifying profit.
Does domestic minimum corporate tax cancel the deduction?
The 2026 amendments allow the transit-trade deduction to be deducted in determining the domestic minimum corporate tax base, subject to the detailed statutory rules.
Can a Turkish trading company also conduct domestic business?
Potentially yes, but qualifying and non-qualifying activities and their revenue, costs and expenses must be tracked separately.
Does VAT automatically apply?
VAT treatment depends on the transaction. Goods that never enter Turkey require a transaction-specific Turkish VAT and documentation review rather than a blanket assumption.
Can SystemsCPA support a transit trading structure?
Yes. SystemsCPA can support accounting design, profit segregation, tax compliance, treasury tracking, related-party accounting, transfer pricing data and group reporting.
Could Your Global Trading Model Qualify for the 95% Deduction?
Send us a sample transaction flow showing seller, buyer, invoice chain, goods movement, payment flow and expected margin. We can assess the Turkish tax and accounting architecture and identify which transactions may qualify.
Request a Transit Trade ReviewThe incentive depends on actual transaction facts and should be implemented with documented accounting, tax and legal support.
Turn Turkey compliance into certainty
SYSTEMS CPA supports foreign-owned companies with company formation, accounting, tax compliance and payroll in Turkey — one accountable local partner. Reviewed by Evren Özmen, SMMM (Certified Public Accountant), TÜRMOB Reg. No. 35675.
