Turkish Government Expands SME Definition: Turnover Threshold Increased To TRY 1 Billion

Today, on 7 August 2025, the Turkish government published an important regulatory update in the Official Gazette (No. 32979), amending the Regulation on Small and Medium-Sized Enterprises (SMEs).

According to Presidential Decree No. 10182, the turnover threshold used to define SMEs in Turkey has been significantly increased. The key changes are as follows:

• Article 4(1)(b) of the original regulation, which defines an SME as a business with an annual net turnover or balance sheet total not exceeding TRY 500 million, has been amended to increase this threshold to TRY 1 billion.
• A parallel amendment was made to Article 5(1)(c), affecting the classification of "medium-sized enterprises," which now includes businesses with an annual net turnover or balance sheet total of up to TRY 1 billion, instead of the previous limit of TRY 500 million.