AKP bill offers tax cuts, asset amnesty to boost investment

ANKARA

The ruling Justice and Development Party (AKP) has submitted a bill to parliament that would grant sweeping tax exemptions to individuals who bring undeclared assets from abroad into Türkiye.

The proposal aims to boost production, attract foreign investment and increase foreign currency inflows, according to AKP officials.

Under the bill, individuals who do not reside in Türkiye and transfer earnings obtained abroad into the country would be exempt from income tax for two decades. The same exemption would apply to people who have recently settled in Türkiye but have not been taxed domestically over the past three years, provided they declare and register their foreign assets by July 31, 2027.

AKP's parliamentary leader Abdullah Güler said the measures are designed to support a “production and export-oriented growth model” and make Türkiye more attractive to international investors.

The bill also introduces corporate tax cuts, lowering the rate on export earnings to 9 percent for manufacturers and 11 percent for other exporters, while expanding deductions for transit trade and increasing incentives for companies operating in the Istanbul Financial Center.

It further extends the repayment period for public receivables from 36 to 72 months and raises the threshold for unsecured deferred debt to 1 million Turkish Liras ($22,110). Additional provisions include tax exemptions on portions of salaries for employees in qualified service centers.

Opposition parties sharply criticized the asset amnesty provision. The main opposition Republican People's Party (CHP) argued that similar measures in the past have enabled illicit funds to enter the country.