Two separate tax questions
The term “service export exemption” can refer to VAT on the invoice or to a deduction in the income/corporate tax return. Meeting the conditions for one does not automatically qualify the business for the other.
Which services qualify?
Income Tax Law Article 89/13 and Corporate Tax Law Article 10/1-ğ cover specified services, such as software, design and engineering, subject to conditions. Not all consulting or remote-work income qualifies. The actual service, foreign customer, exclusive use abroad, invoice recipient and timely transfer of the qualifying earnings must be reviewed. Education and healthcare have additional requirements.
What changed for 2026?
Presidential Decision No. 11257 set the relevant deduction rate at 100% for income and profits of tax periods beginning from 1 January 2026. It applies only to qualifying profit. It does not mean that all foreign revenue is free of tax. Corporate taxpayers must also consider the separate domestic minimum corporate tax calculation.
VAT needs its own review
The service must be supplied for a customer abroad and used abroad for the relevant service-export exemption. A foreign customer or payment in foreign currency alone is insufficient. Work concerning a foreign customer’s activities in Türkiye requires specific attention to where the benefit is received.
Prepare evidence of the actual service
Keep the service contract, customer information, delivery and use records, invoices, payment transfers, and the relevant income and expense breakdown. Appropriate wording on an invoice cannot replace a transaction that actually meets the conditions.