Türkiye Corporate Tax 2026: The Rate, the Inflation-Accounting Suspension, and What It Means for Your Parent Group

If you run a Turkish subsidiary for a foreign parent, two facts shape your 2026 financial year more than any other: the corporate tax rate, and a significant change to inflation accounting. Both affect how your local statutory result reconciles to the number your group expects. This is a practical, sourced breakdown — not tax advice, but enough to ask your CPA the right questions.

The corporate tax rate

Türkiye's standard corporate income tax rate is 25%. Certain sectors face different rates — for example, banks and some financial institutions are taxed at a higher rate — but for a typical foreign-owned trading, manufacturing or service subsidiary, 25% is the figure to plan around.

This matters for parent-group planning because 25% is meaningfully higher than the headline rate in several Western jurisdictions. When modelling the after-tax contribution of your Turkish operation, use 25% as the baseline, not your home-country rate.

The big 2026 change: inflation accounting suspended

This is the headline for finance teams. Türkiye applied inflation accounting (enflasyon muhasebesi) for the 2023 financial year, which restated non-monetary items (inventory, fixed assets, equity) for the effect of high inflation. It materially changed reported results.

Under Law No. 7571, published in the Official Gazette on 25 December 2025, inflation adjustment has been suspended for the 2025, 2026 and 2027 financial years for most taxpayers — including for provisional (interim) tax periods. A narrow exception applies: businesses continuously engaged in buying, selling and producing processed gold and silver continue to apply inflation adjustment.

Why the suspension matters to a foreign parent

When inflation accounting is in force, the Turkish statutory result diverges from a simple historical-cost result — sometimes significantly — because assets and equity are restated. This created a real reconciliation headache: the local statutory profit and the figure derived under most group GAAPs could differ by a wide margin.

With the suspension for 2025–2027, statutory accounts revert to historical cost for most taxpayers. For many foreign-owned operations this actually simplifies the bridge between local and group reporting, because one major source of difference is removed for these years.

The caution: this is a temporary, legislated suspension. It was extended year by year, and it could be reinstated. Don't bake "no inflation accounting" into permanent assumptions — confirm the status each year.

The revaluation rate, separately

A related but distinct figure: the revaluation rate (yeniden değerleme oranı) for 2026 has been set at 25.49%. This rate is used in various tax calculations and the periodic uplift of certain thresholds, fees and depreciation bases. It is not the same as inflation accounting — even in years where inflation adjustment is suspended, the revaluation rate continues to apply to specific items. Your CPA will use it where relevant.

What this means for your year-end reconciliation

For the 2026 financial year, a foreign-owned Turkish subsidiary should expect:

1. Statutory result at 25% corporate tax, on historical-cost books (inflation adjustment suspended).
2. A reconciliation bridge to group reporting that — for these years — does NOT carry an inflation-restatement line for most taxpayers, but still carries exchange differences and GAAP adjustments.
3. Provisional tax through the year at the same rate, also without inflation adjustment.
4. Awareness that the suspension is temporary — model future years with a flag, not a permanent assumption.

What your finance team should track

• Clean historical-cost records (the basis for statutory accounts in suspended years)
• The corporate tax provision built up quarterly at 25%
• Items where the 25.49% revaluation rate applies (your CPA identifies these)
• A documented reconciliation between statutory and group figures each close

How Birasyo helps

Birasyo ERP keeps clean, historical-cost statutory books that align with the current suspended-inflation regime, builds the corporate tax provision continuously, and produces the statutory-to-group reconciliation your parent needs. Because the system separates statutory and group views, switching back to inflation accounting in a future year — if legislation reinstates it — is a configuration change, not a rebuild.

Explore Birasyo for foreign-owned operations →

Summary

For 2026, the two numbers that frame your Turkish subsidiary are a 25% corporate tax rate and a suspension of inflation accounting for 2025–2027 (for most taxpayers). The suspension simplifies the local-to-group reconciliation for now, but it's temporary by law. Plan with the current facts, confirm them annually with your CPA, and keep your books clean enough to switch regimes if the rules change again.

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Sources: corporate tax rate (25%) and the inflation-accounting suspension for 2025–2027 under Law No. 7571 (Official Gazette, 25 December 2025), as reported by EY Türkiye and PwC Türkiye tax bulletins; 2026 revaluation rate of 25.49%. This is general information, not tax advice — confirm specifics with a licensed Turkish CPA (Mali Müşavir).