From 2027, qualifying manufacturing profit in Türkiye is subject to a 12.5% corporate income tax rate. The owner's first question is which part of the company's profit meets the conditions. Manufacturing, resale and services cannot automatically share the same preferential calculation.
Article 8 of Law No. 7582, adopted on 21 May 2026 and published on 4 June 2026, introduced the change. GİB's final Communiqué No. 26, dated 4 July 2026, explains its application. The legislation has been adopted for future periods.
When the rate applies
The new rate concerns profit earned in tax periods from 2027 onward. For companies using a special accounting period, it starts with the period beginning in calendar year 2027. Publication in 2026 does not move that year's manufacturing profit to 12.5%: the communiqué retains the previous one-percentage-point reduction for qualifying 2026 manufacturing profit.
The certificate must match actual activity
An industrial company needs both an industrial registry certificate, Sanayi Sicil Belgesi, and actual manufacturing activity. A manufacturing description in its name or articles is insufficient. The financial model should reflect operations the company performs and can substantiate.
The communiqué also addresses software, information technology and similar production within the industrial certificate's scope. This does not automatically extend the rate to every IT business or payment from a foreign customer.
The law also covers qualifying agricultural production profit. For that category, the communiqué separately requires actual production and one of the specified Ministry of Agriculture and Forestry documents. Industrial-company certificate requirements should not simply be imposed on an agricultural enterprise.
Case: some operations go to a contractor
Consider a company making products in Türkiye while another factory performs a particular processing stage. Using a contractor does not itself exclude relief. The final communiqué sets conditions worth checking before signing the production agreement:
- The outsourced operations must fall within the production described in the industrial certificate or relevant operating licence.
- The company's own manufacturing must predominate over outsourced manufacturing. The rule goes beyond prohibiting complete outsourcing.
- The qualifying profit must be limited by actual capacity utilisation.
- The company must bear the production risk, organise production and supply raw and auxiliary materials.
Where contractors conduct the production predominantly, or the company merely trades without assuming production organisation and risk, the earnings are not treated as manufacturing profit for this calculation. A small internal assembly operation does not, by itself, establish compliance. The communiqué does not prescribe a universal percentage test for determining the predominance of own production.
How the eligible tax base is identified
For mixed activities, the communiqué uses manufacturing profit as a proportion of commercial accounting profit. That proportion is applied to the tax base. Manufacturing's share of sales revenue therefore cannot replace the profit calculation.
An official calculation uses the following amounts, in Turkish lira:
| Item | Amount |
|---|---|
| Commercial accounting profit | 2,000,000 |
| Manufacturing profit | 1,400,000 |
| Tax base after adjustments and prior losses | 1,300,000 |
| Manufacturing share | 70% |
| Base eligible for the reduction | 910,000 |
| Remaining base | 390,000 |
In that calculation, 12.5% applies to TRY 910,000, with the general rate applying to the remaining TRY 390,000. Multiple manufacturing activities are assessed together, including production losses. The eligible amount is limited by manufacturing profit and the relevant net taxable profit.
Exporting self-manufactured goods does not add a further five-percentage-point reduction to the same earnings. Article 32(8) expressly excludes applying the export reduction in Article 32(7) again to that profit.
What to check before preparing the 2027 budget
Reconcile the industrial certificate, capacity information, products actually made and sales records. Map the operations: what the company does itself, what contractors do, who supplies materials and who bears risk. Agreements should match the process in practice.
Separate revenue, production costs and shared expenses by activity. Ask the accountant to show the bridge from accounting profit to taxable profit and the manufacturing allocation. That calculation supports an estimate for the actual business before tax savings enter pricing, investment plans or commitments to partners.
Official sources
- Law No. 7582, Articles 8 and 14: the amendment to Corporate Income Tax Law No. 5520, Article 32(8), and applicable periods.
- GİB final Communiqué No. 26, 4 July 2026, Official Gazette No. 33300.
- Full official PDF: Article 7, pages 6–12; sections 32.1.2.6, 32.1.2.6.1 and 32.1.2.7.
Checked on 22 October 2026. The table reproduces the amounts in an official calculation. The contractor case is conditional and does not describe a client engagement.