Recent Development
The Law on the Restructuring of Certain Receivables and
Amendments to Certain Laws No. 7256 published in the Official
Gazette No. 31307 on November 17, 2020 introduced several
amendments to the tax legislation. Please see our Legal Alert about
these changes
here.
One of these changes is particularly important for Turkish
capital markets. The amendment
("Amendment") to Article 32 of the
Corporate Tax Law No. 5520 provides tax rate reductions for
companies going public on the Borsa Istanbul Stock Market.
What Does the Amendment Say?
According to the Amendment, the corporate tax rate applied to
the corporate income of companies going public on the Borsa
Istanbul Stock Market will be applied with a two (2) point discount
(instead of the default 20% rate) for five accounting periods,
starting from the first accounting period in which the offering was
made, provided that the shares representing no less than 20% of the
total share capital of
