Türkiye introduced a new Qualified Service Center regime in 2026 for multinational groups centralizing finance, treasury, accounting, technology, data, HR, sales support and other group functions. A qualifying Turkish company can deduct 95% of profit earned from eligible foreign-group services — and potentially 100% in specified locations — while qualifying employees can also benefit from a substantial salary income-tax exemption.
A Turkish capital company can qualify if it serves related companies in a group active in at least three countries, performs qualifying services and earns at least 80% of annual revenue from foreign related companies or the group. Qualifying foreign-service profit is generally eligible for a 95% deduction for up to 20 accounting periods; the deduction can reach 100% in qualifying IFM or designated industrial-zone cases.
Why This Regime Matters
The legislation turns Türkiye into a potential location for regional shared-service and capability centers. The eligible activity list includes finance, treasury, budgeting, financial reporting and analysis, international accounting and compliance, technology, data analytics, HR, training, brand management, sales support, R&D coordination, sourcing and product-testing coordination.
Who Can Qualify?
| Requirement | Practical meaning |
|---|---|
| Capital company | The Turkish entity must be a qualifying capital company. |
| International group | The related group must be actively operating in at least three countries. |
| Related-party service model | The center provides statutory listed services to related companies or the group. |
| 80% revenue threshold | At least 80% of annual revenue must come from foreign related companies or the group. |
What Activities Are Covered?
Finance & Control
- Financial advisory
- Risk management
- Cash and liquidity management
- Funding
- Capital planning
- Budgeting
- Financial reporting
- International accounting and compliance
Technology & Corporate
- Digital transformation
- Technology consulting
- Data analytics
- HR
- Training
- Brand management
Operational Coordination
- Sales support
- After-sales support
- Technical support
- R&D coordination
- Sourcing
- Product testing
95% Corporate Tax Deduction
The deduction applies to profit — not gross revenue — earned exclusively from eligible Qualified Service Center activities. At the current general 25% corporate tax rate, a pure qualifying profit with a 95% deduction produces a simple pre-adjustment tax equivalent of about 1.25% of qualifying profit.
100% Deduction in IFM and Certain Industrial Zones
The deduction can reach 100% for qualifying operations in the Istanbul Financial Center with the required participant certificate, and in industrial zones covered by the relevant Presidential determination.
The 20-Accounting-Period Window
The deduction can apply for 20 accounting periods beginning with the accounting period in which the center starts operations. A short first accounting period still counts as one period, so timing can matter.
Profit Transfer Condition
Qualifying profit must be transferred to Türkiye by the deadline for filing the annual corporate income tax return for the relevant period. Intercompany billing, collection and treasury planning therefore need to be aligned with the incentive.
Payroll Tax Incentive
| Location | Income-tax exempt salary cap |
|---|---|
| General Qualified Service Center | Up to 3 × monthly gross minimum wage. |
| Qualifying IFM / designated industrial-zone center | Up to 5 × monthly gross minimum wage. |
The exempt portion also receives stamp-tax exemption. Amounts above the cap remain subject to ordinary payroll rules.
Accounting Architecture
- Separate qualifying and non-qualifying revenue.
- Use cost centers for qualifying functions.
- Identify the qualifying employee population.
- Maintain intercompany service agreements and pricing support.
- Track profit-transfer deadlines.
- Reconcile payroll exemptions monthly.
How SystemsCPA Can Support
Eligibility map
Review the group footprint, functions, entities served and revenue model.
Finance design
Build local accounting, cost-center, payroll and billing architecture.
Tax & payroll
Implement deduction, payroll exemption and compliance controls.
HQ reporting
Reconcile Turkish statutory results to group reporting and transfer pricing.
Frequently Asked Questions
What is a Qualified Service Center in Turkey?
A Turkish capital company serving related companies in a group active in at least three countries, performing qualifying services and earning at least 80% of annual revenue from foreign related companies or the group.
What is the corporate tax benefit?
Generally 95% of qualifying foreign-service profit can be deducted from the corporate tax base. The deduction can be 100% in qualifying Istanbul Financial Center or designated industrial-zone cases.
How long can the deduction apply?
Up to 20 accounting periods beginning with the accounting period in which the center starts operations.
What is the 80% test?
At least 80% of annual revenue must be earned from foreign related companies or the related group.
Which services can qualify?
Finance, treasury, budgeting, financial reporting, international accounting and compliance, technology, data analytics, HR, training, brand management and listed coordination functions can qualify.
Is there a payroll incentive?
Yes. Qualifying personnel can receive an income-tax exemption on salary up to three times the gross minimum wage; the limit is five times in qualifying IFM or designated industrial-zone cases. The exempt portion also receives stamp-tax exemption.
Does all company income qualify?
No. Only profit from qualifying Qualified Service Center activities is within the deduction. Other income must be tracked separately.
Must the profit be transferred to Turkey?
Yes. Qualifying profit must be transferred to Turkey by the annual corporate income tax return filing deadline for the relevant period.
Does domestic minimum corporate tax cancel the incentive?
The 2026 amendments allow this deduction to be taken into account in the domestic minimum corporate tax base calculation, subject to the detailed rules.
Can SystemsCPA support implementation?
Yes. SystemsCPA can support accounting design, payroll coordination, tax compliance, revenue and cost segregation, transfer pricing data and group reporting.
Is Türkiye a Viable Location for Your Regional Service Hub?
We can review the group structure, target functions, revenue model, staffing profile and location options and build a Turkish finance, tax and payroll implementation roadmap.
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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.
