In late 2024, Turkey increased the general withholding tax rate on cross-border payments including dividends, interest, and royalties from 10% to 15% via Presidential Decree. The 50% participation exemption under the Corporate Tax Law remains applicable, subject to revised qualification rules.

On February 11, 2025, the Ministry of Treasury and Finance issued updated guidelines concerning the “simple procedure” regime under the Income Tax Law, a simplified taxation framework for small businesses and artisans. To qualify, taxpayers must be personally involved in their business, remain below defined thresholds (e.g., annual sales not exceeding TRY 1,100,000 for goods, TRY 340,000 for services, or TRY 690,000 for mixed activities), and not be liable under the real taxation system. These updates aim to reduce ambiguity in income determination, promote compliance, and improve oversight of micro-entrepreneurial activity.